A significant chip shortage has existed globally for some time, something chip manufacturers have been responding to with hefty investments. This is also reflected in the figures for the chip production system market. Global sales of these are expected to grow to $117.5 billion in 2022, up 14.7% from the $102.5 billion sales realised in 2021. Sales are expected to rise further to $120.8 billion in 2023.
This is according to figures from SEMI, the global trade association for electronics manufacturers and the design supply chain. The industry association presented its Mid-Year Total Semiconductor Equipment Forecast - OEM Perspective at SEMICON West 2022 Hybrid. The research is based on information provided by major market players, the SEMI Worldwide Semiconductor Equipment Market Statistics (WWSEMS) data collection programme and the SEMI World Fab Forecast database.
Growth for both front-end and back-end production systems
Both front-end and back-end manufacturing equipment sales are expected to grow. Front-end manufacturing here refers to the production of wafers. Back-end manufacturing refers to the production processes that take place once all the circuits on the wafer have been created.
The wafer manufacturing segment, which includes wafer processing, production facilities and mask/reticule equipment, is expected to experience growth of 15.4%. SEMI expects the segment to set a new record with revenues of USD 101 billion in 2022. The segment's revenue is then expected to rise 3.2% to USD 104.3 billion in 2023.
"In line with the semiconductor industry's determined commitment to increasing and upgrading capacity, the wafer fabrication equipment segment is poised to reach the USD 100 billion milestone for the first time in 2022," explains Ajit Manocha, president and CEO of SEMI. "Secular trends across a wide range of markets combined with strong investments in digital infrastructure are driving another record year."
Foundry and logic segments are growing fast
SEMI sees high demand for both advanced and mature process nodes. As a result, the foundry and logic segments of the market are expected to grow by 20.6% year-on-year to USD 55.2 billion by 2022. SEMI expects the market to grow in 2023 as well, reaching a global revenue of $59.5 billion. This represents an increase of 7.9%. Together, the two segments account for more than half of total wafer fabrication equipment sales.
The industry association also points to strong demand for memory and storage. This is expected to drive higher spending on DRAM and NAND devices in 2022. The DRAM segment is expected to grow by 8% to reach USD 17.1 billion. The NAND equipment market is expected to grow by 6.8% to USD 21.1 billion. SEMI also expects growth in 2023, although considerably lower than in 2022. For instance, investment in DRAM production equipment is expected to grow by 7.7% in 2023. Spending on NAND equipment will increase by 2.4%, the industry association predicts.
Demand for assembly and packaging equipment decreases
The assembly and packaging equipment segment saw growth of no less than 86.5% in 2021. SEMI predicts that this growth will slow in the coming years. For example, turnover is expected to rise by 8.2% to $7.8 billion in 2022. A decline of 0.5% to $7.7 billion is forecast for 2023.
The market for semiconductor test equipment is also expected to grow. SEMI forecasts growth of 12.1% to USD 8.8 billion in 2022, followed by 0.4% growth in 2023. The organisation attributes this mainly to high demand for high-performance computing (HPC) applications.
Taiwan is most important sales market
In terms of geographical markets, Taiwan, China and Korea are the biggest markets for chip production systems, the organisation predicts. Taiwan recaptures the leading position in both 2022 and 2023, SEMI predicts. China and Korea will follow. However, investments in other regions worldwide are also expected to rise in both years.
Author: Wouter Hoeffnagel
Photo: brookhaven via Pixabay
