MARKET INSIGHTS

The global Wafer Used Etching Equipment Market size was valued at US$ 12.34 billion in 2024 and is projected to reach US$ 23.89 billion by 2032, at a CAGR of 9.9% during the forecast period 2025-2032.

Wafer etching equipment is a critical component in semiconductor manufacturing that selectively removes material from silicon wafers to create intricate circuit patterns. This process utilizes two primary technologies: dry etching (plasma-based) and wet etching (chemical solution-based). These systems enable the production of advanced logic chips, memory devices, and MEMS components with increasingly smaller node sizes.

The market growth is driven by surging demand for consumer electronics, 5G infrastructure, and automotive semiconductors. While the transition to extreme ultraviolet (EUV) lithography requires more sophisticated etching solutions, geopolitical tensions and export controls pose supply chain challenges. Key players like Lam Research and Tokyo Electron Limited are investing heavily in atomic layer etching (ALE) technologies to maintain competitiveness as feature sizes shrink below 5nm. The Asia-Pacific region dominates demand, accounting for over 70% of global semiconductor fabrication capacity expansion.

List of Key Wafer Etching Equipment Manufacturers

• Lam Research Corporation (U.S.)
• Tokyo Electron Limited (Japan)
• Applied Materials, Inc. (U.S.)
• Hitachi High-Tech Corporation (Japan)
• SEMES Co., Ltd. (South Korea)
• Advanced Micro-Fabrication Equipment Inc. (AMEC) (China)
• NAURA Technology Group (China)
• SPTS Technologies (KLA Corporation) (U.K.)
• Oxford Instruments (U.K.)
• ULVAC, Inc. (Japan)
• Plasma-Therm LLC (U.S.)

Segment Analysis:

By Type

Dry Etch Equipment Segment Leads Due to High Precision in Semiconductor Manufacturing

The market is segmented based on type into:

• Dry Etch Equipment
  • Subtypes: Plasma Etching, Reactive Ion Etching (RIE), Deep Reactive Ion Etching (DRIE), and others
• Wet Etch Equipment
  • Subtypes: Isotropic Etching, Anisotropic Etching, and others

By Application

Foundry Segment Dominates Market Share Due to Growing Semiconductor Outsourcing Trends

The market is segmented based on application into:

• IDM (Integrated Device Manufacturers)
• Foundry

By Technology Node

Advanced Nodes Below 10nm Show Significant Growth Due to Increasing Miniaturization

The market is segmented based on technology node into:

• Nodes above 28nm
• 28nm-10nm nodes
• Nodes below 10nm

By Wafer Size

300mm Wafers Continue Market Dominance Due to Higher Productivity

The market is segmented based on wafer size into:

• 200mm wafers
• 300mm wafers
• 450mm and others

Regional Analysis: Global Wafer Used Etching Equipment Market

North America
North America remains a critical hub for semiconductor manufacturing, with wafer etching equipment demand driven by advanced research facilities and high-volume production. The U.S. dominates the region, leveraging strong R&D investments from companies like Intel and GlobalFoundries, coupled with government initiatives like the CHIPS Act, which allocated $52 billion to domestic semiconductor production. The focus on 3D NAND and FinFET technologies necessitates precision etching equipment, benefiting major players like Lam Research and Applied Materials. However, supply chain disruptions and export controls on advanced technologies to China pose challenges. Environmental regulations around chemical usage in wet etching processes also influence equipment purchasing decisions.

Europe
Europe’s wafer etching equipment market is propelled by specialized semiconductor applications in automotive and industrial IoT sectors. While the region lacks large-scale foundries, it excels in niche segments like MEMS and power semiconductors, creating steady demand for both dry and wet etching tools. Collaborative projects such as the EU’s Important Project of Common European Interest (IPCEI) foster local semiconductor ecosystem growth. ASML’s EUV lithography dominance indirectly benefits etching equipment suppliers through process integration needs. The emphasis on sustainability pressures manufacturers to reduce perfluorocompound (PFC) emissions from dry etching processes.

Asia-Pacific
Asia-Pacific accounts for over 60% of global wafer etching equipment consumption, anchored by TSMC’s (Taiwan) advanced nodes and China’s aggressive semiconductor self-sufficiency push. China’s domestic etching equipment makers like NAURA and AMEC are gaining traction amid U.S. export restrictions, though technological gaps persist versus international leaders. South Korea’s Samsung and SK Hynix drive demand for sub-5nm node capable tools, while Southeast Asia sees growth from packaging and test facilities. Japan maintains strength in specialized etching for image sensors and memory. Regional competition intensifies as governments prioritize semiconductor supply chain localization through subsidies and joint ventures.

South America
South America represents an emerging opportunity, primarily servicing regional electronics assembly and automotive sensor markets. Brazil’s CEITEC and a growing PCB manufacturing base spur limited demand for basic etching equipment. However, economic instability and underdeveloped semiconductor supply chains restrict large-scale adoption. Most advanced equipment is imported for research applications at universities and state-owned labs. Partnerships with Chinese equipment vendors are increasing but face scalability challenges due to financing constraints and technology transfer limitations.

Middle East & Africa
The MEA region shows potential through strategic diversification into semiconductor manufacturing, particularly in the UAE and Saudi Arabia, where sovereign wealth funds invest in next-gen technologies. Recent initiatives like Abu Dhabi’s G42 partnering with Cerebras Systems signal intent, though wafer etching demand remains minimal currently. Israel’s strong fabless ecosystem indirectly supports equipment testing and development. Africa’s market is nascent, with basic PCB fabrication driving modest wet etching equipment needs, while political and infrastructural barriers slow semiconductor sector maturation. Long-term growth depends on successful partnerships with Asian and European technology providers.