Semiconductor Manufacturing Equipment Market Size, Share, Growth, Trends, and Global Industry Analysis: By Equipment Type (Front-end Equipment, Back-end Equipment), By Dimension (2D, 2.5D, 3D), By Application (Semiconductor Fabrication Plant/Foundry, Semiconductor Electronics Manufacturing, Testing & Inspection), and Region Forecast 2025-2031

Semiconductor Manufacturing Equipment Market size was valued at US$ 110.2 billion in 2024 and is projected to reach US$ 237.6 billion by 2031 at a CAGR of 11.6%. The market comprises tools, machines, and systems used in the fabrication and assembly of semiconductor devices, including integrated circuits and memory chips. This market encompasses front-end equipment used in wafer fabrication, lithography, etching, deposition, and cleaning and back-end equipment for assembly, packaging, and testing. These technologies are crucial to achieving the precision, miniaturization, and efficiency demanded by modern electronic devices across industries such as consumer electronics, automotive, telecommunications, and data centers.

The market is witnessing robust growth due to the surging global demand for high-performance computing, 5G infrastructure, AI-driven devices, and electric vehicles. As semiconductor nodes continue to shrink and chip complexity rises, equipment manufacturers are innovating with advanced EUV lithography, atomic layer deposition, and wafer inspection tools. The market is also being bolstered by significant investments from countries like the U.S., South Korea, Taiwan, and China to strengthen domestic chip production capabilities. The push toward fab expansion and strategic reshoring initiatives, combined with rising R&D in quantum and neuromorphic chips, is expected to sustain momentum in the coming years.

Facts & Figures

• ASML, the sole supplier of EUV lithography machines globally, reported in its 2023 annual report that it shipped 52 EUV systems in 2023, with each unit costing over $150 million, indicating strong global demand for advanced lithography tools.
• According to data published by the SEMI (Semiconductor Equipment and Materials International) association in 2023, global semiconductor equipment sales reached over $100 billion for the second consecutive year, with significant contributions from Taiwan, China, and South Korea.
• TSMC disclosed in its investor relations statements that it planned over $32 billion in capital expenditures for 2024, a large portion of which is allocated to acquiring front-end equipment for 3nm and 2nm node production.

Key Developments

• In March 2025, SiCarrier, a China-linked firm affiliated with Huawei, unveiled a suite of newly developed semiconductor tools for etching, deposition, metrology, and inspection at Semicon China. This marked its official emergence as a challenger in domestic chip?making equipment, intensifying competition with global leaders such as ASML and increasing pressure on the global equipment supply chain.
• In June 2024, ASML and Belgium’s imec inaugurated the first High?NA EUV research laboratory in Veldhoven. The facility hosts ASML’s prototype EXE:5000 machine and enables chipmakers to conduct early testing and process development for next?generation nodes below 2?nm—a critical step to accelerate global adoption.
• In April 2024, Intel finalized assembly of the world’s first High Numerical Aperture (High?NA) EUV lithography tool—ASML’s TWINSCAN EXE:5000—at its Hillsboro, Oregon R&D facility. Priced at around $350 million, this advanced system supports sub?2?nm chip fabrication with substantially higher resolution and enhanced throughput, laying groundwork for Intel’s forthcoming 14A node.

Semiconductor Manufacturing Equipment Market Segmentation

Based on the process

• Front-end
• Deposition
• Lithography
• Cleaning
• Testing
• Back-end
• Packaging
• Testing

Among the process segments of the semiconductor manufacturing equipment market, the front-end lithography segment is anticipated to lead as a key driver of market growth. Lithography plays a critical role in defining intricate circuit patterns on silicon wafers, which is essential for manufacturing advanced semiconductor nodes such as 5nm, 3nm, and beyond. With the growing demand for high-performance computing, AI chips, and mobile processors, chipmakers are rapidly transitioning to extreme ultraviolet (EUV) lithography a next-generation technology primarily supplied by ASML.

EUV systems offer higher precision and reduced complexity in multi-patterning steps, making them indispensable for cutting-edge chip fabrication. As reported by public company data, ASML’s EUV sales reached record levels in 2023, driven by increased orders from TSMC, Samsung, and Intel. The push toward smaller, faster, and more energy-efficient chips is making lithography the technological backbone of semiconductor manufacturing. Consequently, investments in front-end lithography equipment are surging, reinforcing its dominant position in the market.

Based on the dimension

• 2D
• 5D
• 3D

Within the dimension-based segmentation of the semiconductor manufacturing equipment market, the 3D segment is anticipated to lead due to its transformative impact on chip performance, efficiency, and space optimization. As the demand for high-bandwidth computing, artificial intelligence, and advanced mobile devices intensifies, traditional 2D chip scaling approaches are reaching physical and economic limits. 3D integration, particularly in the form of 3D ICs and stacked memory such as HBM (High Bandwidth Memory), offers a powerful alternative by enabling vertical stacking of components. This reduces interconnect lengths, improves signal speed, and minimizes power consumption.

Major semiconductor manufacturers like Intel, Samsung, and TSMC are increasingly adopting 3D packaging and through-silicon via (TSV) technologies to deliver next-generation processors and memory modules. These advancements require highly specialized equipment for wafer bonding, metrology, and testing, driving robust demand in the 3D segment. As miniaturization challenges escalate, 3D architecture is emerging as the leading dimension propelling equipment innovation and capital investment.

Based on the application

• Semiconductor Electronics Manufacturing
• Semiconductor Fabrication Plant/Foundry
• Testing & Inspection

Among the application segments, the Semiconductor Fabrication Plant/Foundry segment is anticipated to lead the semiconductor manufacturing equipment market due to its central role in high-volume chip production and advanced process development. Foundries such as TSMC, Samsung Foundry, and GlobalFoundries are at the forefront of producing chips at cutting-edge nodes like 5nm, 3nm, and progressing toward 2nm. These fabrication plants require continuous investments in next-generation manufacturing equipment, including EUV lithography, atomic layer deposition, and advanced metrology systems.

As devices become more complex and miniaturized, foundries play a pivotal role in adopting the latest equipment to ensure scalability, yield optimization, and reduced defect density. The global surge in demand for AI accelerators, automotive chips, and 5G infrastructure is driving aggressive fab expansions, particularly in Taiwan, South Korea, and the United States. With governments supporting domestic chip production through major subsidies and incentive programs, the foundry segment is set to maintain its dominant influence on equipment procurement and technological advancement.