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Burgeoning Demand for Semiconductor ICs Driving the Global Wafer-Level Manufacturing Equipment Market Through 2020, Says Technavio
[February 08, 2016]

Burgeoning Demand for Semiconductor ICs Driving the Global Wafer-Level Manufacturing Equipment Market Through 2020, Says Technavio


According to the latest market study released by Technavio, the global wafer-level manufacturing equipment market is set to post a CAGR of over 4% by 2020.

This research report titled 'Global Wafer-level Manufacturing Equipment Market 2016-2020' provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments and all geographical regions.

The report also segments the global wafer-level manufacturing equipment market into three key regions, including APAC, North America, and Europe. Of these three regions, APAC has been the largest contributor to the market, accounting for close to 72% market share in 2015. The significant presence of semiconductor IC manufacturers in APAC is one of the major reasons for the high revenue contribution from this region.

One of Technavio's lead analysts from the semiconductor equipment sector, Asif Gani, says, "The increasing adoption of semiconductor devices in IoT applications is driving the semiconductor market, which will create demand for wafer-level manufacturing equipment. Similarly, with the increasing demand for semiconductor ICs in both the consumer electronics and automobile segments, and also with the growing complexities of semiconductor ICs, the demand for wafer-level manufacturing equipment will see a rise during the forecast period."

Request sample report: http://goo.gl/USuXT5

The report segments the global wafer-level manufacturing equipment market into different types of application:

  • Foundry
  • Memory device manufacturers
  • Integrated device manufacturers (IDM)



Foundry segment: largest wafer-level manufacturing equipment consumer

As of 2015, the foundry segment was the largest revenue contributor to the global wafer-level manufacturing equipment market and accounted for a revenue share of almost 63%. The primary reason for the market dominance of the foundry segment is the increasing number of fabless semiconductor manufacturers. Technavio predicts the foundry segment to achieve a revenue of over USD 27 billion by 2020, at a CAGR of more than 4%.


"The foundry segment is likely to progress significantly over the next five years due to increasing demand for semiconductor ICs, such as logic, analog, discrete, optic, and sensor ICs, which are used in devices such as smartphones, tablet PCs, notebooks, digital cameras, gaming consoles, set-top box, and network switches," affirms Asif.

Memory segment anticipated to generate over USD 10 billion by 2020

The memory segment is expected to generate over USD 10 billion by 2020, posting a CAGR of more than 4% during the forecast period. Technology traction and oversupply of DRAM by memory device manufacturers will slow down the expansion of production facilities globally in 2016. Therefore, the market share of this segment will decline in the same year. However, the market is expected to recover post 2016, due to the increasing demand for DRAM and NAND used in smartphones and tablet PCs and a high adoption of 3D NAND. This will indirectly trigger the demand for wafer-level manufacturing equipment during 2017-2020.

High adoption of the fabless business model to hinder growth of the IDM segment

The IDM segment contributed more than USD 4 billion in 2015 to the global market and this figure is expected to increase to USD 5 billion by 2020, growing at a CAGR of over 2%, during the forecast period. However, the market share of this segment will decline as a result of the high adoption of the fabless business model.

The top vendors highlighted by Technavio's research analysts in this report are:

  • Applied Materials (News - Alert)
  • ASML
  • KLA-Tencor
  • Lam Research
  • Tokyo Electron

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

If you are interested in more information, please contact our media team at [email protected].


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