Date: 09/04/2024

Wafer fab equipment industry: the calm after the storm?

Once again, revenue from wafer fab equipment surpasses that of semiconductor devices, maintaining a robust level at $105 billion.
2023 OUTLOOK AND 2024 EXPECTATIONS.

Once more, in CY2023, there was stagnation following the unprecedented revenue growth in wafer fab equipment (WFE) witnessed in CY2022. 2024 is also expected to be flat in terms of absolute value and market shares.

By the end of 2023, Yole Group announces that the CY2023 remained unchanged following the record-breaking year of CY2022, in its quarterly Wafer Fab Equipment Market Monitor update.

Despite facing numerous challenges and a downturn in memory capital expenditures, CY2023 maintained a flat trajectory following the record WFE revenues of CY2022. Projections for 2024 also indicate a similar stability in terms of both absolute value and market shares, without significant fluctuations before an anticipated increase in WFE revenue in 2025 driven by investments in memory and logic, where conventional WFE dynamics are expected to apply.

The notable revenue achieved in CY2023 was largely attributed to record shipments to China, contributing more than 30% of total WFE revenue despite the expansion of the U.S. ban. Conversely, the U.S. ban has spurred China’s efforts towards semiconductor manufacturing independence, leading to a thriving domestic ecosystem across all semiconductor sectors.

Additionally, CY2023 witnessed significant market share reshuffling across various fronts: patterning emerged as the leading WFE technology, ASML secured the top position among WFE leaders for equipment shipments and service and support, and there were notable shifts in device applications served by WFE, with the memory market share declining while advanced packaging, legacy logic, and specialty devices experienced growth.




Source: Yole

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