Global sales of semiconductor manufacturing equipment by original equipment manufacturers are projected to increase six percent to $63.2 billion in 2020 compared to $59.6 billion in 2019 before logging record high revenue of $70 billion in 2021 on the strength of double-digit growth, SEMI announced today in releasing its Mid-Year Total Semiconductor Equipment Forecast – OEM Perspective at the annual SEMICON West exposition.
Growth across a number of semiconductor segments is expected to power the expansion. The wafer fab equipment segment – which includes wafer processing, fab facilities, and mask/reticle equipment – is expected to rise five percent in 2020 followed by 13 percent growth in 2021 driven by a memory spending recovery and investments in leading-edge and China. Foundry and logic spending, accounting for about half of total wafer fab equipment sales, will see single-digit increases in 2020 and 2021. Both DRAM and NAND spending in 2020 will surpass 2019 levels and are projected to grow over 20 percent, respectively, in 2021.
The assembly and packaging equipment segment is forecast to grow 10 percent to $3.2 billion in 2020 and 8 percent to $3.4 billion in 2021 driven by advanced packaging capacity buildup. The semiconductor test equipment market is expected to increase 13 percent, reaching $5.7 billion in 2020, and continue the growth momentum in 2021 on the back of 5G demand.
Regionally, China, Taiwan and Korea are expected to lead the pack in spending in 2020. Robust spending in China in the foundry and memory sectors is expected to vault the region to the top in total semiconductor equipment spending in 2020 and 2021. Taiwan equipment spending, after seeing 68 percent growth in 2019, is forecast to contract this year but bounce back with 10 percent growth in 2021, with the region maintaining the second spot in equipment investments. Korea is expected to rank third in semiconductor equipment investments in 2020 by outstripping its 2019 levels, making it the third top spender in 2020. Korea equipment spending is projected to grow 30 percent in 2021 powered by the memory investment recovery. Most other regions tracked will also see growth in 2020 or 2021.
The following results are in terms of market size in billions of U.S. dollars:
Source: SEMI July 2020, Equipment Market Data Subscription
The current SEMI forecast is based on collective input from top equipment suppliers, SEMI's industry-recognized World Fab Forecast database, and SEMI’s Worldwide Semiconductor Equipment Market Statistics (WWSEMS) data collection program.