Global semiconductor equipment sales set to hit a record US$124bil in 2025

PETALING JAYA: Global sales of total semiconductor manufacturing equipment by original equipment manufacturers are forecast to contract 6.1% to US$100bil in 2023 from US$107.4bil posted in 2022, according to US-based Semiconductor Equipment Manufacturers Industry (SEMI).

SEMI said semiconductor manufacturing equipment growth is expected to resume in 2024, with sales forecast to reach a new high of US$124bil 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,” SEMI president and CEO Ajit Manocha said in a statement.

“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.”

The wafer fab equipment segment, which includes wafer processing, fab facilities and mask/reticle equipment, is projected to slip 3.7% to US$90.6bil in 2023 from a record US$94bil last year.

This contraction marks a significant improvement from the 18.8% decline forecast by SEMI in its Mid-Year Total Semiconductor Equipment Forecast – OEM Perspective.

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.

SEMI said 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 US$110bil.

Meanwhile, Semiconductor test equipment market sales are projected to contract by 15.9% to US$6.3bil in 2023, while assembly and packaging equipment sales are expected to drop by 31% to US$4.0bil in the same year.

The test equipment and assembly and packaging equipment segments are forecast to expand by 13.9% and 24.3%, respectively, next year.

Back-end segment growth is expected to continue in 2025, with test equipment sales rising 17% and assembly and packaging sales increasing 20%.

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 US$30bil 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,” SEMI said.