The global semiconductor industry is experiencing unprecedented change and growth, and the fab equipment market, as a key link in the semiconductor industry chain, is particularly eye-catching. According to the latest forecast of the International Semiconductor Industry Association (SEMI), the fab equipment market will maintain stable growth in 2024 and is expected to achieve explosive growth in 2025, injecting strong impetus into the sustainable development of the global semiconductor industry.
In 2024, global semiconductor equipment sales are expected to reach $109 billion, up 3.4% year-over-year, a figure that not only demonstrates the strong resilience of the semiconductor market, but also marks a new industry record for the fab equipment market. Against this backdrop, sales in the Fab Equipment segment, which includes wafer processing, wafer fabrication facilities, and masking/dicing equipment, are expected to reach $98 billion, up 2.8% year-over-year. This growth was mainly driven by continued strong demand in the Chinese market and increased investment in high-end storage technologies such as DRAM and HBM (High Bandwidth Memory).
Looking forward to 2025, the global semiconductor equipment market will usher in a more brilliant chapter. SEMI forecasts that global semiconductor equipment sales will soar to $128 billion for the year, achieving a strong growth of about 17%. The growth trend is also significant for fab equipment, with sales expected to reach $113 billion, up 14.7% year-over-year. This explosive growth is mainly driven by the surge in demand for advanced logic and storage applications, especially with the rapid development of emerging fields such as artificial intelligence, Internet of Things, and 5G communications, the demand for high-performance, low-power semiconductor products continues to rise.
Figure: Fab Equipment Market Forecast (Source: Yole)
From the perspective of regional distribution, Chinese mainland, Taiwan and Korea are still the leaders in the fab equipment market. Among them, Chinese mainland occupies a pivotal position in the semiconductor equipment market with its huge market demand and continuous improvement of the industrial chain layout. In 2024, Chinese mainland semiconductor equipment sales are expected to reach $35 billion, continuing to consolidate its leading position in the global market.
In terms of technology, storage devices such as DRAM and NAND are particularly eye-catching. DRAM equipment sales are expected to grow by 24.1% in 2024 and 12.3% in 2025, while NAND equipment sales are also expected to grow significantly over the same period. In addition, the semiconductor test equipment and assembly and packaging equipment market will also usher in a period of rapid growth, contributing to the overall prosperity of the fab equipment market.
In summary, the fab equipment market has shown a steady growth trend in 2024 and is expected to usher in explosive growth in 2025. This trend not only reflects the strong fundamentals and growth potential of the global semiconductor industry, but also indicates that the semiconductor industry will pay more attention to technological innovation and industrial upgrading in the future. With the continuous emergence of emerging technologies and the continuous growth of market demand, the fab equipment market will continue to be an important driving force for the development of the global semiconductor industry.
