Global sales of total semiconductor manufacturing equipment by original equipment manufacturers are forecast to reach a new high of $103 billion in 2021, surging 44.7% from the previous industry record of $71 billion in 2020, SEMI announced in its Year-End Total Semiconductor Equipment Forecast – OEM Perspective. The growth is expected to continue with the global total semiconductor manufacturing equipment market expanding to $114 billion by 2022.
Crossing the $100-billon mark in total semiconductor manufacturing equipment sales reflects the global semiconductor industry’s concerted and exceptional drive to expand capacity to meet strong demand. We expect continuing investments in the digital infrastructure buildout and secular trends across multiple end markets to fuel healthy growth in 2022.
Both the front-end (wafer fab) and back-end (assembly/packaging and test) semiconductor equipment segments are contributing to the global expansion. The wafer fab equipment segment, which includes wafer processing, fab facilities, and mask/reticle equipment, is projected to expand 43.8% to a new industry record of $88 billion in 2021, followed by a 12.4% increase in 2022 to approximately $99 billion. Wafer fab equipment in 2023 is expected to decrease slightly by -0.5% to $98.4 billion.
The foundry and logic segments, accounting for more than half of total wafer fab equipment sales, will surge 50% year-over-year to reach $49.3 billion in 2021 driven by demand for both leading-edge and mature nodes. The growth momentum is expected to continue in 2022 with the foundry and logic equipment investments rising 17%.
Strong enterprise and consumer demand for memory and storage is contributing to strength in DRAM and NAND equipment spending. The DRAM equipment segment is leading the expansion in 2021 surging 52% to $15.1 billion and growing 1% in 2022 to $15.3 billion. The NAND equipment market is projected to jump 24% in 2021 to $19.2 billion and 8% in 2022 to $20.6 billion. Expenditures are expected to drop by -2% and -3% in 2023 for DRAM and NAND respectively.
After seeing robust 33.8% growth in 2020, the assembly and packaging equipment segment is expected to surge by 81.7% to $7 billion in 2021, followed by another 4.4% increase in 2022 driven by advanced packaging applications. The semiconductor test equipment market is expected to grow 29.6% in 2021 to $7.8 billion and continue to expand by 4.9% in 2022 on demand for 5G and high-performance computing (HPC) applications.
Regionally, China, Korea, and Taiwan are projected to remain the top three destinations for equipment spending in 2021. China is projected to maintain the top position, which it claimed for the first time in 2020, while Taiwan is expected to regain the top position in the market in 2022 and 2023. Equipment spending for all regions tracked are expected to grow in 2021 and 2022.
The following results reflect market size by segment and application in billions of US dollars:
Total equipment includes new wafer fab, test, and A&P. Total equipment excludes wafer manufacturing equipment. Totals may not add due to rounding. Source: SEMI December 2021, Equipment Market Data Subscription
The current SEMI forecast is based on collective input from top equipment suppliers, the SEMI Worldwide Semiconductor Equipment Market Statistics (WWSEMS) data collection program and the industry-recognized SEMI World Fab Forecast database.
SEMI connects more than 2,400 member companies and 1.3 million professionals worldwide to advance the technology and business of electronics design and manufacturing. SEMI members are responsible for the innovations in materials, design, equipment, software, devices, and services that enable smarter, faster, more powerful, and more affordable electronic products. Electronic System Design Alliance (ESD Alliance), FlexTech, the Fab Owners Alliance (FOA) and the MEMS & Sensors Industry Group (MSIG) are SEMI Strategic Technology Communities, defined communities within SEMI focused on specific technologies.