Demand for semiconductor ICs fueling global wafer-level manufacturing equipment market through 2020

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 percent by 2020.

In its release, the company said 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 percent 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 semiconductormarket, 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.”

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 percent. 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 percent.

“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 2020The memory segment is expected to generate over USD 10 billion by 2020, posting a CAGR of more than 4 percent 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 segmentThe 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 percent, 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.


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