APAC Semiconductor Manufacturing Equipment Market Value to Gain $60 bn by 2026

Published Date: 2020-10-19

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According to the Graphical Research new growth forecast report titled Asia Pacific Semiconductor Manufacturing Equipment Market Size will be over USD 60 billion by 2026. The market growth is majorly attributed to the rising trends toward electric vehicle adoption China, India, Japan, among others. Several government initiatives toward clean energy and emission reduction from vehicles will positively influence the automakers to increase their initiatives toward electric vehicles. For example, in January 2020, Tata AutoComp Systems announced its joint venture with Prestolite Electric to development powertrain solutions for the Indian electric vehicle market. It will also help the company to accelerate its offerings with the introduction of controllers, motors, battery packs, and integrated drive trains for the EV segment. These initiatives will propel the adoption of semiconductor manufacturing equipment to fulfill the requirement of high-power modules and components required in automotive electronics.

The assembly and packaging equipment segment will growth at a CAGR of over 6.0% in the Asia Pacific semiconductor manufacturing equipment market. The growth is majorly attributed to the proliferation of compact and advanced electronics devices including smartphones, wearables, tablets, among others. The manufacturers in the consumer electronics industry are inclined toward the integration of reduced node size semiconductors in advanced and compact devices, increasing the requirement for assembly and packaging equipment. The packaging equipment helps manufacturers to achieve low power consumption and high chip connectivity in advanced electronics devices. In September 2020, Apple Inc, announced the development of its new iPad Air equipped with A14 Bionic chip, based on TSMC 5nm EUV manufacturing process.

The 2.5D segment is showcasing a significant growth opportunity in the Asia Pacific semiconductor manufacturing equipment market, growing at a CAGR of over 7.0% during the forecast timeline. The segment growth is attributed to its rising deployment in high-end applications, such as servers, 5G devices, and AI, in the region. According to GSMA, the 5G connections in Asia Pacific in 2020 will be 111 million, which will be projected to increase to 1.090 connection by 2025. This increase in 5G connection will positively influence the adoption of 2.5D architecture for advanced semiconductor devices. The 2.5 D architecture aids to deliver high bandwidth, improved performance, and I/O connectivity in advanced semiconductor devices. The foundry suppliers are also integrating 2.5D packaging architecture into ICs to achieve quick designing prototyping and faster time to market to achieve high competitiveness among players.

Japan holds significant growth opportunities in the Asia Pacific semiconductor manufacturing equipment market and will grow at a CAGR of around 4% during the forecast period. The growth is attributed to its highly competitive semiconductor material and equipment industry in the country. Japan is one of the major exporters of semiconductor manufacturing equipment in Asia Pacific. According to Korea International Trade Association, South Korea has imported 33.8% of its total semiconductor manufacturing equipment from Japan, in the first five months of 2019, accounting for USD 1.12 billion.

The key players in the Asia Pacific semiconductor manufacturing equipment market are taking several strategic initiatives toward research & development that aids to accelerate their market position for semiconductor manufacturing equipment. For example, in August 2020, TSMC announced the opening of its new EUB training center in Taiwan. This new business expansion will help the company to enhance its EUB machine modules and provide comprehensive training course to EUV engineers in Asia Pacific. Some of the other players in the market include Advantest Corporation, Hitachi High-Tech Corporation, ULVAC, Inc., and Tokyo Electron Limited, among others.

Asia Pacific semiconductor manufacturing equipment market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD million from 2015 to 2026, for the following segments:

Market Share, By Product

  • Front-end equipment
    • Lithography
    • Polishing & grinding
    • Water surface conditioning equipment
    • Others
  • Back-end equipment
    • Wafer manufacturing equipment
    • Assembly & packaging equipment
    • Test equipment
    • Others

Market Size, By Dimension

  • 2D
  • 2.5D
  • 3D

Market Value, By Supply Chain

  • OSAT
  • IDM
  • Foundry

The above information has been provided for the following countries:

  • China
  • Japan
  • South Korea
  • Taiwan