Semiconductor Etch & Deposition Equipment Market  Size (2025 – 2030)

The Semiconductor Etch & Deposition Equipment Market was valued at USD 11.03 Billion in 2025 and is projected to reach a market size of USD 14.73 Billion by the end of 2030. Over the forecast period of 2026-2030, the market is projected to grow at a CAGR of 5.96%.

The Semiconductor Etch and Deposition Equipment Market is crucial in shaping the microstructural and electrical properties of integrated circuits. These systems are vital for the precise patterning, layering, and alteration of materials on silicon wafers at the nanometer level. With the industry advancing toward 3nm nodes and gate-all-around (GAA) transistor architectures, the demand for cutting-edge etch and deposition solutions has significantly increased.

Key Market Insights:

The rising demand for generative AI applications is fueling an increased requirement for computational capabilities, fostering advancements in software development and prompting significant investments in data center infrastructure and semiconductor manufacturing facilities.

Market Drivers:

Rising capital investments in semiconductor processing are driving growth within the market.

The advancement of semiconductors in line with Moore's law and the steady growth of the industry have been supported by substantial investment and global collaboration. Continued investment is expected to remain a key driver of the sector's expansion. Additionally, increasing government involvement in the semiconductor industry is playing a significant role in boosting demand for semiconductor etching equipment. For example, the Chinese government has prioritized support for the chip industry, allocating over USD 150 billion in investments by 2030 to stimulate semiconductor production.

Amid the ongoing global chip shortage, semiconductor companies worldwide are planning substantial investments in their research and development facilities to meet rising demand. Many leading players are also expanding their fabrication capabilities. For instance, Bosch announced plans to enlarge its wafer production facility in Reutlingen, Germany, aiming to add more manufacturing space and clean-room infrastructure with an investment exceeding EUR 250 million by 2025. Such strategic expansion initiatives are driving growth in the semiconductor etching equipment market.

The growing adoption of semiconductor technologies in the automotive sector is driving market expansion.

Semiconductors play a critical role in modern high-tech vehicles, supporting essential functions such as sensing, display systems, control mechanisms, safety features, and power management. Their use is particularly prominent in electric and hybrid vehicles (EVs), which are experiencing rapid growth. Semiconductor devices enable advanced safety systems and semi-autonomous driving assistance technologies. Features such as blind-spot detection, adaptive cruise control, rearview cameras, collision-avoidance sensors, lane-change assistance, airbag deployment sensors, and emergency braking systems are all powered by semiconductors, further driving market growth.

Market Restraints and Challenges:

Market growth is being constrained by trade uncertainties and fluctuations in the semiconductor memory sector.

The US-China trade tensions and broader global political uncertainties are impacting the electronics industry. Weakening conditions in the semiconductor sector are largely linked to global economic uncertainty, stemming from the ongoing trade dispute between the US and China, a slowing Chinese economy, and overall economic sluggishness. Moreover, semiconductors have a complex manufacturing and supply chain and are heavily traded globally. Complicated customs regulations, trade policies, and procedural requirements can significantly disrupt semiconductor supply chains, creating costly challenges for both businesses and consumers.

Market Opportunities:

Rapid technological advancements and ongoing industry transitions are creating new opportunities in the market.

Semiconductors are now central to some of the most critical emerging technologies, including artificial intelligence, quantum computing, and advanced wireless networks. As innovative technologies are increasingly integrated into almost every aspect of daily life, semiconductor and microelectronics development is evolving to meet the demands of a rapidly changing digital environment. Furthermore, the growth of big data and AI is driving the need for smaller, more powerful chips, making their manufacturing increasingly complex and necessitating technological advancements. This dynamic has spurred the introduction of new products in the market.

For example, Lam Research launched a new series of selective etch devices that leverage advanced wafer fabrication techniques and specialized chemistries to support the production of gate-all-around (GAA) transistor architectures. Lam's selective etch portfolio, which includes Argos, Prevos™, and Selis, provides significant advantages in the design and manufacturing of advanced logic and memory semiconductor systems. These developments collectively create substantial opportunities for growth in the global semiconductor market.

SEMICONDUCTOR ETCH & DEPOSITION EQUIPMENT MARKET REPORT COVERAGE:

Semiconductor Etch & Deposition Equipment Market Segmentation:

Semiconductor Etch & Deposition Equipment Market Segmentation By Equipment Type:

• Deposition Equipment
• Etch Equipment

In the Global Semiconductor Etch and Deposition Equipment Market, categorized by equipment type, deposition equipment has maintained a leading position. This is due to its critical role in creating thin films of dielectrics and metals, which are essential for semiconductor device fabrication. Etch equipment accounted for a 45.7% market share, being used to accurately remove layers during pattern transfer processes. Although deposition equipment currently dominates the market, etch equipment is projected to grow at a faster pace, driven by rising demand for advanced etching technologies in 3D NAND, FinFET structures, and sub-7nm semiconductor nodes.

Semiconductor Etch & Deposition Equipment Market By Product Type:

• High-density Etch Equipment
• Low-density Etch Equipment

The high-density etch equipment segment is projected to capture the largest market share over the forecast period. The performance of microelectronic systems is closely linked to the density of devices integrated within them. Silicon (Si) interposers have gained significant attention in the microelectronic packaging sector due to their potential applications in emerging 2.5D system integration, offering a technologically advanced and cost-effective solution for achieving high-density interconnects. Furthermore, the semiconductor industry’s recovery and growth in the coming years will be strongly driven by technological innovation, as reflected in new chipset designs that enable faster development of high-performance processors.

In applications such as space technologies, low mass density is highly valued due to the high cost of launching components, which currently averages approximately USD 5,000–6,500 per pound. Machinability is also important, as these specialized components are typically produced in small quantities through precision machining. Ceramic materials, particularly BN-SiO2-based composites initially developed in the USSR/Russia and later refined in the United States, meet these requirements effectively. Plasma etching of silicon remains one of the most widely used techniques for fabricating silicon-based devices and molds, particularly when high dimensional accuracy and vertical sidewalls are required.

Semiconductor Etch & Deposition Equipment Market By Etching Type:

• Dielectric Etching
• Conductor Etching
• Polysilicon Etching

The conductor etching segment is expected to hold the largest market share over the forecast period. Conductor etching equipment is widely employed to shape electrically active materials within various semiconductor device components. Even minor variations in these microscopic structures can lead to electrical defects that compromise device performance. The designs involved in conductor etching are so precise that the process often approaches the physical limits of standard wafer sizes. Conductor etching is typically carried out by applying electromagnetic combustion energy to a gas containing a chemically reactive element, such as fluorine. The growth of the conductor etching systems market is closely linked to the overall development of the global semiconductor equipment industry.

Dielectric etching, on the other hand, removes non-conductive materials during semiconductor device fabrication. Advanced memory devices present particularly complex structures, including extremely deep holes and trenches, which require highly precise manufacturing. Silicon dioxide (SiO₂) and silicon nitride (Si₃N₄) are commonly used dielectric materials in semiconductor processing. As feature sizes shrink and device technologies advance, there is growing demand for dielectric etchers capable of supporting tight critical dimension (CD) control. With the industry rapidly approaching the era of 90-nm feature semiconductor devices, the requirement for high-performance dielectric etching equipment has become a key priority.

Semiconductor Etch & Deposition Equipment Market By Applications:

• Foundries
• Sensors
• MEMS
• Power Devices
• Others

Foundries represent one of the primary applications for semiconductor etching. The integration of automation, machine learning, and advanced analytics is becoming increasingly important in these facilities. The benefits of these technologies—such as optimizing manufacturing processes and improving yield without compromising quality—are driving demand. With expanded production capacities and reduced costs, vendors are anticipated to take on additional manufacturing contracts, resulting in a significantly higher supply and helping to address shortages across multiple industries.

Micro-electromechanical systems (MEMS) involve process technologies that produce miniature systems and integrated devices combining electrical and mechanical components. A key advantage of MEMS technology is the ability to use the same substrate, typically silicon, to fabricate both mechanical structures and electronic circuits. Etching plays a critical role in MEMS manufacturing, as it is used to selectively remove material from the substrate or deposited thin films to create fully functional MEMS structures.

Semiconductor Etch & Deposition Equipment Market Segmentation: Regional Analysis:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

The Asia Pacific region is projected to experience the highest growth in the Semiconductor Etch and Deposition Equipment Market during the forecast period. This expansion is being driven by the development of mega-fabs and government-supported initiatives aimed at enhancing semiconductor self-sufficiency, resulting in significant capital investments in front-end manufacturing equipment, particularly etching and deposition systems. China has launched major programs to increase domestic chip production and reduce dependence on foreign equipment suppliers.

Within this context, China is expected to record the fastest growth, with a substantial portion of investment directed toward etch and deposition technologies. Leading manufacturers such as Taiwan’s TSMC and South Korea’s Samsung are also scaling their advanced nodes, generating strong demand for state-of-the-art tools to support 3nm and 2nm process technologies. Japan continues to contribute to the regional ecosystem through its well-established materials and equipment base. While North America and Europe are seeing growing investments under the CHIPS and Science Act and Europe’s Chips Act, respectively, Asia Pacific retains a distinct advantage due to its mature infrastructure, skilled workforce, and concentrated supply chain. This regional strength supports sustained leadership in capital equipment spending. With Asia Pacific fabs accounting for nearly 70% of global semiconductor production, the region is well-positioned to lead growth in the etch and deposition equipment market in the foreseeable future.

Semiconductor Etch & Deposition Equipment Market COVID-19 Impact Analysis:

The COVID-19 pandemic led to a significant slowdown in market growth in 2020, with demand for semiconductors declining sharply due to lockdowns that disrupted the global supply chain. However, following the second quarter of 2020, the semiconductor industry experienced a resurgence, driven by increased demand for advanced computing, connected devices, remote healthcare solutions, and modern logic operations. This recovery underscores the critical role of semiconductors in the contemporary economy.

Latest Market News:

Earlier, in March 2024, Lam Research launched the world’s first production-oriented Pulse Laser Deposition (PLD) tool, designed for next-generation MEMS-based microphones and radio frequency (RF) filters. The PLD systems are capable of depositing (AlScN)m films with the highest scandium content, enabling advanced device performance.

Latest Trends and Developments:

Leading global players in the semiconductor industry are investing heavily in research and development, focusing on the creation of advanced technologies capable of producing more compact wafers. Semiconductor etch equipment plays a critical role across the sector as a material removal tool that ensures wafer surfaces are leveled for the precise integration of semiconductor components in electronic devices. These components are extensively utilized in rapidly growing telecommunications technologies, including 4G, 5G, and fiber-optic networks. The equipment is valued for its high precision and efficient production capabilities. Following the pandemic, etch systems have been increasingly employed in wafer processing to support technological innovations such as artificial intelligence (AI) and Industry 4.0 applications.

Key Players in the Market:

1. Applied Materials Inc.
2. Hitachi High Technologies America Inc.
3. Tokyo Electron Limited
4. Plasma-Therm LLC
5. Lam Research Corporation
6. Panasonic Corporation
7. SPTS Technologies Limited (Orbotech)
8. ASML Holding NV
9. Suzhou Delphi Laser Co. Ltd
10. Shenzhen Delphi Laser & Robot Co., Ltd.