In its latest report recently released at SEMICON West 2024, the International Semiconductor Industry Association (SEMI) predicts that the global semiconductor equipment market will usher in a historic leap in 2024, with total sales expected to reach a record $109 billion. This forecast not only highlights the importance of the semiconductor industry in the global economy, but also indicates that the continued push of technological advancement and market demand will help the industry achieve new growth peaks.
According to SEMI's Mid-Year Total Semiconductor Equipment Forecast Report, the fab equipment segment, as the core of the semiconductor equipment market, is expected to contribute $98 billion in sales in 2024, up 2.8% year-over-year. This growth driver is mainly due to the strong performance of the Chinese market and the strong demand for high-end memories such as DRAM (Dynamic Random Access Memory) and HBM (High Bandwidth Memory). In addition, with the continuous global investment in emerging technologies such as artificial intelligence and high-performance computing, the demand for semiconductor devices continues to grow, injecting new vitality into the fab equipment market.
Notably, although the back-end equipment market has experienced contraction over the past two years, SEMI expects the market to begin to recover in the second half of 2024. Sales of back-end equipment, such as test, assembly and packaging, are expected to grow 7.4% and 10.0% to $6.7 billion and $4.4 billion, respectively. This forecast shows that with the continuous improvement of semiconductor manufacturing processes and the recovery of end-market demand, the back-end equipment market will also usher in new development opportunities.
Figure: Global semiconductor equipment sales forecast (Source: SEMI)
In the report, SEMI pointed out that technological advancements, increasing market demand, and increasing investments are the key factors driving the growth of the semiconductor equipment market. As the global demand for semiconductor products continues to rise, major manufacturers have increased investment to improve production capacity and technical level. This trend has not only contributed to the growth of the semiconductor equipment market, but also laid a solid foundation for the prosperity of the entire semiconductor industry.
Looking ahead, SEMI predicts that the global semiconductor equipment market will continue to grow in 2025. Driven by both front-end and back-end segments, the semiconductor manufacturing equipment market is expected to reach a new high of $128 billion in sales. This forecast not only reflects the strong growth momentum of the semiconductor industry, but also indicates that the global economy will continue to benefit from the wave of digital transformation.
The global semiconductor equipment market is set to witness record sales growth in 2024, driven by a combination of technological advancements, increasing market demand, and increasing investments. As the semiconductor industry continues to grow and develop, we have reason to believe that this trend will continue for some time to come, injecting new vitality and impetus into the global economy.
