Semiconductor Equipment Market Expected to Grow Despite Decline in Fab Spending
San Diego, CA, February 25, 2025: TECHCET— the electronic materials advisory firm providing semiconductor materials supply chain information — is anticipating an 8% increase for the global semiconductor equipment market in 2025, kickstarting a path for steady growth through 2027. This upturn follows a slight rebound of ~5% in 2024. Over the past 18 months, leading equipment suppliers, including Lam Research, Applied Materials, Tokyo Electron (TEL), ASML, KLA, Kokusai, ASM International (ASMI), Hitachi High-Tech, and Screen Holdings, have been navigating shifting market conditions as fabs dropped CapEx by 7% while adjusting their investment strategies.
While most semiconductor equipment manufacturers experienced revenue growth, ASML and Hitachi High-Tech saw slight declines in 2024 due to market fluctuations in lithography and metrology equipment market demand. The overall revenue increase reflects continued investment in advanced EUV lithography, atomic layer deposition, and etching technologies, which are critical for next-generation semiconductor production.
The drop in fab CapEx signals a cautious approach from chipmakers, influenced by macroeconomic conditions, inventory adjustments, and geopolitical factors. Many semiconductor manufacturers are optimizing existing production lines rather than aggressively expanding capacity, impacting new equipment market orders.
Looking ahead, the semiconductor equipment market remains resilient, driven by demand for AI, high-performance computing, and advanced logic and memory technologies. Despite near-term spending adjustments by chip fabs, long-term investments in cutting-edge semiconductor manufacturing are expected to support industry growth and continue to drive growth in equipment and associated spares.
For more details on TECHCET’s consulting and reports on the semiconductor equipment market and spare parts (including Ceramics, Quartz, Silicon Parts, and O-Rings), set up a meeting with TECHCET at Semicon China and contact us here or go to: https://techcet.com
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ABOUT TECHCET: TECHCET CA LLC is an advisory services firm expert in market and supply-chain analysis of electronic materials for the semiconductor, display, solar/PV, and LED industries. TECHCET offers consulting, subscription service, and reports, including the Critical Materials Council (CMC) of semiconductor fabricators and Data Subscription Service (DSS). For additional information, please email us here, call +1-480-382-8336, or go to www.techcet.com.Semiconductor Equipment Market Expected to Grow Despite Decline in Fab Spending