Semiconductor Equipment

SEMICON West 2024: Chip equipment sales to set new record in 2024

10 July 2024
Source: SEMI

Sales of worldwide semiconductor manufacturing equipment are set to reach $109 billion this year, a growth of 3.4% year-on-year, a new industry record, according to trade organization SEMI.

Announced that SEMICON West 2024, semiconductor equipment sales are forecast to continue to grow in 2025 with sales reaching another new record of $128 billion. This will be driven by both the front-end and back-end segments, SEMI said.

“The growth in total semiconductor manufacturing equipment sales already underway this year is forecast to be followed by a robust expansion of roughly 17% in 2025,” said Ajit Manocha, president and CEO at SEMI. “The global semiconductor industry is demonstrating its strong fundamentals and growth potential supporting the diverse range of disruptive applications emerging from the Artificial Intelligence wave.”

Wafer fabs

Among the different sectors of semiconductor equipment, the wafer fab equipment segment — wafer process, fab facilities and mask/reticle equipment — is forecast to reach $98 billion this year, a 2.8% increase from 2023.

SEMI said this increase is an improvement from the previous forecast of $93 billion in the 2023 forecast. The increase in sales is due to strong equipment spending in China with substantial investments in DRAM and HBM due to artificial intelligence (AI) computing.

In 2025, wafer fab equipment is forecast to grow to $118 billion due to increased demand for logic and memory application, SEMI said.

Back-end equipment

Meanwhile back-end equipment has started its recovery in the second half of 2024 after struggling for two years from contraction due to macroeconomic and softening chip demand.

SEMI forecasts semiconductor test equipment is projected to reach $6.7 billion, a rise of 7.4% while assembly and packaging chip equipment sales will reach $4.4 billion this year, an increase of 10.0%.

Looking toward 2025, the back-end segment will continue to growth with test equipment sales surging 30.3% and assembly and packaging sales increasing 34.9%. This huge growth will be due to the increasing complexity of devices as well as the recovery in demand for automotive, industrial and consumer electronics end markets.

To contact the author of this article, email PBrown@globalspec.com


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