Canadian Manufacturing

Global semiconductor equipment sales forecasted to reach $109B in 2024: SEMI report

by CM Staff   

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After registering a record $96 billion in sales last year, the wafer fab equipment segment, which includes wafer processing, fab facilities and mask/reticle equipment, is projected to increase 2.8% to $98 billion in 2024.

SEMI Total Equipment Forecast by Segment
* Total equipment includes new wafer fab, test, and assembly and packaging. Total equipment excludes wafer manufacturing equipment. Totals may not add due to rounding.

SAN FRANCISCO — Global sales of total semiconductor manufacturing equipment by original equipment manufacturers are forecast to set a new industry record, reaching $109 billion in 2024, growing 3.4% year-on-year, SEMI announced in its Mid-Year Total Semiconductor Equipment Forecast – OEM Perspective at SEMICON West 2024. Semiconductor manufacturing equipment growth is expected to continue in 2025, with sales forecast to set a new high of $128 billion in 2025, driven by both the front-end and back-end segments.

“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, SEMI president and CEO. “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.”

After registering a record $96 billion in sales last year, the wafer fab equipment segment, which includes wafer processing, fab facilities and mask/reticle equipment, is projected to increase 2.8% to $98 billion in 2024. This marks a notable increase from the previously forecasted $93 billion in SEMI’s 2023 Year-End Equipment Forecast. Ongoing strong equipment spending in China and substantial investments in DRAM and HBM, driven by AI computing, drove the upward revision. Looking ahead to 2025, Wafer fab equipment segment sales are projected to expand 14.7%, reaching $113 billion due to increased demand for advanced logic and memory applications.

Following two years of contraction caused by challenging macroeconomic conditions and softening semiconductor demand, the back-end equipment segment is anticipated to start its recovery in the second half of 2024. Specifically, sales of semiconductor test equipment are projected to rise 7.4% to $6.7 billion in 2024, while assembly and packaging equipment sales are predicted to increase 10.0% to $4.4 billion in the same year.

The sales of Wafer Fab equipment for foundry and logic applications are expected to show a moderate contraction of 2.9% year-over-year to $57.2 billion in 2024 as a result of softening in demand for mature nodes and higher than expected sales for advanced nodes in the previous year.

China, Taiwan and Korea are expected to remain the top three destinations for equipment spending through 2025. China is projected to maintain the top position over the forecast period as the region’s equipment purchases continue to rise. Equipment shipments to China are projected to exceed a record $35 billion in 2024, solidifying its lead over other regions. While equipment spending for some regions is expected to fall in 2024 before rebounding in 2025, China is expected to see a contraction in 2025 following significant investments over the past three years.

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