Rising AI and high-performance computing applications are driving record capital spending across the semiconductor manufacturing equipment market, with front-end tools commanding a 74.5% revenue share. Multi-billion-dollar fab expansions in Asia Pacific, Europe, and North America are securing multi-year equipment order pipelines, while next-generation HBM production and EUV lithography adoption create concentrated demand for advanced back-end and front-end tools.
Chicago, Jan. 12, 2026 (GLOBE NEWSWIRE) — The global semiconductor manufacturing equipment market was valued at 93.03 billion in 2024 and is expected to reach US$ 224.44 billion by 2033, growing at a CAGR of 10.28% from 2025 to 2033.
A powerful wave of capital spending is redefining the semiconductor manufacturing equipment terrain, as orders are increasingly propelled by record investments in AI and high-performance computing. For instance, overall global fab equipment spending is set to reach US$ 110 billion in 2025. Foundries are leading this charge with planned expenditures of about US$ 61 billion, alongside a strong US$ 37 billion from the memory sector. Consequently, this direct investment translates into significant orders, with foundry and logic equipment sales projected to hit US$ 64.8 billion. Furthermore, total sales for the entire semiconductor manufacturing equipment market are forecast to reach an unprecedented US$ 125.5 billion in 2025.
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Specific technology bottlenecks, meanwhile, are forming highly concentrated demand across the ecosystem. In advanced packaging, for example, TSMC’s CoWoS capacity is estimated to surge to 80,000 wafers per month in 2025 from around 40,000 in 2024 to meet overwhelming customer demand. Moreover, the critical dependency on EUV lithography for advanced nodes is also a major factor; ASML recorded a remarkable €5.4 billion in net bookings in its third quarter of 2025, with €3.6 billion of that dedicated to EUV systems. Simultaneously, back-end equipment is seeing a surge, with test equipment sales expected to reach a record US$ 9.3 billion while assembly and packaging tools climb to US$ 5.4 billion.
Next-Gen HBM Demand Drives Record Orders for Thermo-Compression Bonders
The production ramp-up for High-Bandwidth Memory (HBM) is a primary driver of investment in the semiconductor manufacturing equipment market. Memory makers are aggressively growing capacity to meet AI-driven demand. For example, SK Hynix plans to invest more than 14.6 trillion won in its next-generation HBM production lines. In addition, Samsung is aiming to triple its HBM output by the end of 2025. Micron has also committed more than 1.2 trillion won to its HBM development facilities in Boise.
This expansion creates immense demand for specific back-end tools. Lead times for critical thermo-compression bonders have now extended to more than 10 months. Each advanced bonder unit can cost between 3 billion and 5 billion won. The complexity is also rising, with next-generation HBM4 moving to 16-layer stacks, requiring even greater precision. Consequently, equipment suppliers like Hanmi Semiconductor secured a landmark 150 billion won order for HBM manufacturing tools. Moreover, BES has received orders for over 2,200 of its advanced HBM reflow machines, and ASML is shipping 10 new hybrid bonding systems in 2025 to support this ramp.
Worldwide Fab Construction Surge Secures Multi-Year Equipment Orders in Semiconductor Sector
A worldwide push to regionalize chip production has ignited a massive fab construction cycle. Governments are delivering substantial funding to secure domestic supply chains. For instance, Intel is moving forward with its massive €33 billion wafer fab complex in Magdeburg, Germany. In the U.S., TSMC has expanded its total investment commitment for its Arizona fabs to US$ 65 billion. The U.S. CHIPS Act is directly fueling these projects, with GlobalFoundries receiving a US$ 1.5 billion grant for its new and upgraded facilities.
These enormous projects translate directly into equipment orders. The cost of a single new leading-edge fab now exceeds US$ 25 billion. These facilities across the semiconductor manufacturing equipment market are immense; TSMC’s Arizona site alone will contain two cleanrooms totaling more than 600,000 square feet. Japan is also investing heavily, providing an initial subsidy of ¥590 billion for Rapidus’s new 2nm fab. In total, construction is starting on 35 new fabs globally between 2024 and 2025. Each new fab requires thousands of individual manufacturing tools. Furthermore, a facility like Intel’s Ohio One site will need 7,000 construction workers and more than 3,000 permanent high-tech jobs, illustrating the scale of these operations.
Front-End Dominance Reinforced by Multi-Billion-Dollar Fab Expansions Worldwide
Front-end equipment’s commanding 74.5% revenue share of the semiconductor manufacturing equipment market arises from its foundational role in semiconductor fabrication. These highly complicated systems perform the most critical and capital‑intensive steps of chip creation on silicon wafers, including lithography, etching, and deposition processes that define semiconductor performance. The immense cost of such machinery, with a single EUV lithography unit exceeding US$ 200 million, anchors its market value. Building an advanced fabrication plant demands investments of tens of billions of dollars, much of it devoted to front‑end tools. Major capital infusions, such as the U.S. government’s US$ 50 billion initiative and ASML’s €5.1 billion raise in May 2025, highlight the segment’s financial gravity. The transition to 2 nm, 3 nm, and 4 nm nodes multiplies process complexity, reinforcing front‑end dominance in the semiconductor manufacturing equipment market.
Historic investment is driven by the growing technical demands of advanced chipmaking. Lam Research’s US$ 1 billion facility in India (February 2025) and China’s domestic equipment funding exceeding ¥13 billion in 2025 exemplify this surge. Fabricating ≤5 nm chips can require up to four separate EUV exposures per layer, doubling lithography and multiplying etch, clean, and metrology steps.
Asia Pacific Commands Global Semiconductor Equipment Market Through Record Fab Investments
The Asia Pacific region solidifies its position as the epicenter of the global semiconductor manufacturing equipment market. The scale of investment is monumental, led by China, which is projected to spend over $30 billion on fab equipment in 2025 alone. Taiwan remains a critical hub, with TSMC planning to invest between US$ 28 billion and US$ 32 billion in capital expenditures in 2024. Furthermore, TSMC’s advanced 2nm fab in Kaohsiung is expected to cost approximately US$ 15.7 billion. In South Korea, Samsung is creating a massive new semiconductor cluster in Yongin, a project with a total planned investment of 300 trillion won.
The regional momentum extends beyond the giants in the semiconductor manufacturing equipment market. Japan is re-emerging as a key player, with the government providing a ¥590 billion subsidy to support Rapidus’s new 2nm fab development. Also, TSMC is building its second Japanese fab in Kumamoto, with a total investment reaching more than US$ 20 billion for both facilities. South Korea’s SK Hynix is also investing a significant 14.6 trillion won into its next-generation HBM production. In Singapore, GlobalFoundries has committed to a US$ 4 billion fab expansion. Lastly, China’s largest chipmaker, SMIC, is moving forward with four new fabs, with a combined investment value exceeding US$ 20 billion.
Semiconductor Manufacturing Equipment Market Major Players:
- Tokyo Electron Limited
- Lam Research Corporation
- Asml Holdings N.V.
- KLA-Tencor Corporation
- Screen Holdings Co., Ltd.
- Applied Materials Inc.
- Teradyne Inc.
- Hitachi High-Technologies Corporation
- Plasma-Therm
- Rudolph Technologies, Inc
- Advantest Corporation
- Startup Ecosystem
- Other Prominent Players
Key Market Segmentation:
By Type
- Front-end Equipment
- Backend Equipment
By Application
- Automation
- Chemical Control Equipment
- Gas Control Equipment
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South America
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