DELRAY BEACH, Fla., Nov. 21, 2025 /PRNewswire/ -- The global semiconductor manufacturing equipment market is projected to reach USD 166.35 billion in 2025 and USD 344.36 billion by 2032, exhibiting a CAGR of 11.0% according to a new report by MarketsandMarkets™. A major factor driving the semiconductor manufacturing equipment market is the surging demand for advanced-node chips used in AI-powered devices, high-performance computing devices, 5G devices, medical electronics, and automotive systems. As chipmakers transition to smaller geometries, such as 5 nm, 3 nm, and the upcoming 2 nm nodes, they require highly sophisticated lithography, deposition, etching, and metrology tools, which significantly increase capital spending on advanced semiconductor equipment.
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Browse in-depth TOC on "Semiconductor Manufacturing Equipment Market"
170 – Tables
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271 – Pages
Semiconductor Manufacturing Equipment Market Scope:
Report Coverage |
Details |
Market Revenue in 2025 |
$ 166.35 billion |
Estimated Value by 2032 |
$ 344.36 billion |
Growth Rate |
Poised to grow at a CAGR of 11.0% |
Market Size Available for |
2021–2032 |
Forecast Period |
2025–2032 |
Forecast Units |
Value (USD Million/Billion) |
Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
Segments Covered |
By Manufacturing Phase, End User, Front-end Equipment, Back-end Equipment and Region |
Geographies Covered |
North America, Europe, Asia Pacific, and Rest of World |
Key Market Challenge |
Capital- and Time-Intensive Compliance Requirements |
Key Market Opportunities |
Increasing Adoption of Advanced Packaging Technologies |
Key Market Drivers |
Growing Inclination toward Miniaturization and Adoption of Advanced Manufacturing Processes |
Deposition equipment segment to record highest CAGR of front-end semiconductor manufacturing equipment market during forecast period
The deposition equipment is projected to record the highest CAGR of the front-end semiconductor manufacturing equipment market during the forecast period due to its critical role in enabling advanced-node device fabrication and emerging chip architectures. As technology nodes scale to 5 nm, 3 nm, and 2 nm, semiconductor structures require increasingly complex thin films, multi-layer stacks, and new materials to support higher performance, lower power consumption, and improved reliability. This drives strong demand for advanced physical vapor deposition (PVD), chemical vapor deposition (CVD), and atomic layer deposition (ALD) systems, particularly ALD, which offers atomic-level precision essential for gate-all-around (GAA) transistors, 3D NAND, and heterogeneous integration. Additionally, the rise of 3D architecture, chiplet-based designs, and advanced packaging further expands the need for thin-film deposition. Continuous innovation in materials engineering, combined with the growing adoption of high-performance devices across AI, HPC, automotive, and 5G applications, reinforces the rapid growth trajectory of deposition technologies, making them the fastest-expanding segment in front-end equipment.
Packaging equipment segment to register highest CAGR in back-end semiconductor manufacturing equipment market between 2025 and 2032
The packaging equipment segment is expected to register the highest CAGR in the back-end semiconductor manufacturing equipment market, driven by the accelerating shift toward advanced packaging technologies that enable higher performance, greater functionality, and improved energy efficiency. As devices transition to 2.5D and 3D architectures, chiplets, heterogeneous integration, fan-out wafer-level packaging (FOWLP), and high-bandwidth memory (HBM) become increasingly complex. These next-generation architectures require highly precise die bonding, thermal management, underfill, bumping, and wafer-level packaging tools, driving significant capital investments. Additionally, AI, HPC, automotive electronics, and 5G systems increasingly rely on advanced packaging to achieve higher density and faster interconnects, thereby amplifying the demand for innovative packaging solutions. The combination of rising integration requirements, the adoption of new materials, and the expanding use cases across high-growth end markets positions packaging equipment as the fastest-growing back-end segment during the forecast period.
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Americas to exhibit highest CAGR in global semiconductor manufacturing equipment market from 2025 to 2032
The Americas, led by the US, is expected to exhibit the highest CAGR in the semiconductor manufacturing equipment industry due to strong government-backed initiatives, aggressive fab expansion plans, and strategic investments from leading global chipmakers. The US CHIPS and Science Act has triggered substantial capital inflows to build new fabrication facilities and modernize existing ones, attracting major players such as Intel, TSMC, Samsung, Micron, GlobalFoundries, and multiple memory and advanced packaging developers. The region has rapidly scaling capacity for advanced logic, AI accelerators, and heterogeneous integration, driven by rising demand from data centers, defense, automotive, and high-performance computing sectors. Additionally, the Americas is strengthening its domestic supply chain through partnerships across materials, metrology, and equipment manufacturing, further accelerating equipment procurement. This surge in regional manufacturing activity, coupled with long-term strategic efforts to localize semiconductor production, positions the Americas as the fastest-growing market for semiconductor manufacturing equipment over the forecast period.
Major players in semiconductor manufacturing equipment companies such as Applied Materials, Inc. (US), ASML (Netherlands), LAM RESEARCH CORPORATION (US), Tokyo Electron Limited (Japan), and KLA Corporation (US).
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