Asia Pacific Semiconductor Manufacturing Equipment Market value was estimated to be over USD 45 billion in 2019 and is expected to grow at a CAGR of over 7.0%.
 

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Asia Pacific semiconductor manufacturing equipment market growth is attributed to rising penetration of 5G devices in the market. 5G chipsets require small form factor, fast processing cores, and energy efficiency, driving the market opportunities for semiconductor manufacturing equipment providers. Foundry players are focusing on development of new facilities to cater to the high demand for 5G chipsets in the market. For instance, in May 2020, Samsung Electronics announced the construction of a 5nm fabrication facility in Pyeongtaek, South Korea. The new facility will focus on manufacturing 5G and AI chipsets, which will boost the market growth for semiconductor manufacturing equipment in the Asia Pacific region.

The ongoing COVID-19 pandemic has led several consumer electronics manufacturers to shift their manufacturing facilities from China to other Asian countries to avoid trade restrictions and high tariffs. This has created lucrative opportunities for semiconductor manufacturing equipment providers in Taiwan, India, South Korea, and Japan. Government bodies in these countries are providing incentives and subsidies to attract foreign manufacturers in the region. For instance, in July 2020, the Ministry of Communications and Information Technology, Government of India, announced a USD 6.65 billion plan to boost the semiconductor and electronics manufacturing in the country. Such supportive investments amid COVID-19 pandemic will provide opportunities for the APAC market players.

The lithography segment accounted for the highest market share with 30.0% in 2019 is projected to grow at a CAGR of over 5% by 2026. The growth is attributed to continuous technological advancement in lithography techniques. The companies are extensively focusing on introducing new lithography equipment for regional markets. For instance, in July 2020, Canon Inc. announced the launch of FPA-8000iW, a semiconductor lithography system for the Japanese market. The new equipment offers high efficiency in production and is suitable for panel level packaging (PLP) applications.

The 3D segment held a market share of over 30% in 2019 and is projected to grow at a CAGR of 8.5% from 2020 to 2026. The growth is attributed to rising adoption of AI chipsets, high performance computing (HPC) devices, and cloud computing infrastructures in the Asia Pacific region. The 3D technology offers high-end features, such as low power consumption and high-bandwidth memory, therefore, tech giants are replacing traditional 2.5D architecture with 3D packaging. In August 2020, TSMC introduced 3DFabric technology to offer 3D silicon stacking and advanced packaging services to its customers.  

Taiwan accounted for the substantial market share in the market in 2019. The growth is attributed to favorable government initiatives by Taiwanese government, which support semiconductor manufacturing in the region. For instance, in June 2020, the Taiwanese government announced a subsidy of USD 334 million to attract foreign chips in the country. The government will subsidize half of the chipmakers research & development cost if they establish semiconductor manufacturing facility in the country. Such supportive investments will provide opportunities for semiconductor manufacturing equipment manufacturers in the Asia Pacific region.

Key players operating in the market are Advantest Corporation, Hitachi High-Tech Corporation, ULVAC, Inc., and Tokyo Electron Limited among others. These players are focusing on mergers and collaboration activities with foundry players to gain competitive advantage in the market. The market players view product innovations as a strategic plan to enhance the market share. For instance, in December 2019, Hitachi High Technologies Corporation launched CD Measurement SEM, which delivers high performance and improved precision measurement. The new equipment significantly supports the mass production for 5nm devices and 3nm devices by leveraging EUV lithography technology.