According to a recent study from market research firm Graphical Research, the Asia Pacific
Semiconductor Manufacturing Equipment Market size is projected to reach a valuation US$ 60
Bn by 2026.
The Asia Pacific region has long been a global leader in the electronics space and will continue to lead
innovation in the coming years, indicating a bright future for the Asia Pacific Semiconductor
Manufacturing Equipment Market. Ongoing developments in 5G technology which requires fast
processing cores, high energy efficiency, and smaller form factor is constantly opening up new
opportunities for the regional chipmakers.
Widespread electric vehicle adoption over the next few years backed by supportive government
initiatives will certainly unlock new possibilities for the industry, while at the same time posing several
new challenges as well. powered by several key trends, some of which are highlighted below.
Advances in lithography and the rising demand for lithography equipment
Lithography equipment captured around 30% market share in 2019 and its demand is projected to grow at a 5% CAGR through 2026, with constant technological advances in lithography techniques. The regional players are constantly focusing on bringing new solutions to the market.
In July last year for instance, Canon Inc. had announced the launch of a new semiconductor lithography system FPA-8000iW for the Japanese market. The technology delivers high efficiency in production and is best suited for panel level packaging (PLP) applications.
Meanwhile, the demand for assembly and packaging equipment is likely to grow at a robust 6% CAGR in the forthcoming years. The proliferation of compact electronics including smartphones, tablets, and smart wearables is a key factor driving this demand.
3D packaging segment will continue to dominate the market through 2026
The 3D segment accounted for around 30% revenue share of Asia Pacific Semiconductor Manufacturing Equipment Market in 2019 and it is likely to grow at a CAGR of 8.5% over 2020-2026. The past few years have witnessed growing adoption of AI chipsets, cloud computing infrastructures, and high performance
computing (HPC) devices.
On account of performance benefits such as higher bandwidth memory and low power consumption, tech giants are increasingly replacing traditional 2.5D architecture with 3D packaging. In August 2020, TSMC had launched the new 3DFabric technology to deliver advanced packaging and 3D silicon stacking services to customers. The 2.5D segment, on the other hand, will witness a steady 7% CAGR up to 2026 with widespread deployment in high-end applications such as 5G and AI.
Emerging opportunities for semiconductor manufacturers in Japan and Taiwan
The market for semiconductor manufacturing equipment in Japan is projected to expand at a 4% CAGR
over the coming years. The country has been among the leading exporters of semiconductors and
chipsets in the APAC region.
In fact, during the first five months of 2019, South Korea imported about 33.8% of semiconductor
manufacturing equipment worth US$1.12 billion from Japan. Meanwhile, Taiwan semiconductor
manufacturing equipment industry will witness substantial growth in the next few years, powered by
government initiatives to boost semiconductor manufacturing in the country.
Last year in June, the Taiwanese government had announced a subsidy of US$334 million to attract
foreign chip in the country. Furthermore, half of the chipmakers’ research and development cost will be
subsidized by the government if they establish a semiconductor facility in Taiwan.
Leading players in the Asia Pacific Semiconductor Manufacturing Equipment Market, including Hitachi
High-Tech Corporation, Tokyo Electron Limited, ULVAC, Inc., and Advantest Corporation, are bound to
witness promising opportunities in the future.