Global semiconductor equipment sales forecasted to reach $124B in 2025: SEMI report
by CM Staff
Semiconductor manufacturing equipment growth is expected to resume in 2024, with sales forecast to reach a new high of $124 billion in 2025, supported by both the front-end and back-end segments.
Source: SEMI December 2023, Equipment Market Data Subscription
* Total equipment includes new wafer fab, test, and assembly and packaging. Total equipment excludes wafer manufacturing equipment. Totals may not add due to rounding.
TOKYO — Global sales of total semiconductor manufacturing equipment by original equipment manufacturers are forecast to reach $100 billion in 2023, a contraction of 6.1% from the industry record of $107.4 billion posted in 2022, SEMI announced today in its Year-End Total Semiconductor Equipment Forecast – OEM Perspective at SEMICON Japan 2023. Semiconductor manufacturing equipment growth is expected to resume in 2024, with sales forecast to reach a new high of $124 billion in 2025, supported by both the front-end and back-end segments.
“We anticipate a temporary contraction in 2023 due to the cyclical nature of the semiconductor market,” said Ajit Manocha, SEMI President and CEO. “2024 will be a transition year. We then expect a strong rebound in 2025, driven by capacity expansion, new fab projects, and high demand for advanced technologies and solutions across the front-end and back-end segments.”
Semiconductor Equipment Sales by Segment
After registering a record $94 billion in sales last year, the wafer fab equipment segment, which includes wafer processing, fab facilities and mask/reticle equipment, is projected to slip 3.7% to $90.6 billion in 2023. This contraction marks a significant improvement from the 18.8% decline forecast by SEMI in its Mid-Year Total Semiconductor Equipment Forecast – OEM Perspective. The upward revision is primarily due to strong equipment spending by China. Wafer fab equipment segment sales are projected to grow at a modest 3% in 2024 from the revised 2023 base due to limited memory capacity addition and the pause of mature capacity expansion. A growth path with a further 18% expansion in 2025 is expected as new fab projects, capacity expansion and technology migrations drive investments to nearly $110 billion.
Semiconductor Equipment Sales by Region
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 billings continue to soar. Equipment shipments to China are projected to surpass a record $30 billion in 2023, widening its lead with other regions. While equipment spending for most tracked regions is expected to fall in 2023 before resuming growth in 2024, China is expected to see a mild contraction in 2024 after heavy investments in 2023.
