Market Trends of Semiconductor Laser Industry
Inspection & Metrology Segment Expected to Hold Major Market Share
- Smartphones and other applications across consumer electronics, automotive applications, etc., drive the need for high-performance, low-cost semiconductor chips. Technology transitions have encouraged these industries, including wireless technologies (5G), artificial intelligence, etc. The trend of growing IoT devices is expected to push the semiconductor industry to invest in this equipment to achieve smart products.
- Moreover, the increasing digitization and trends of remote work and operations have sparked the requirement for advanced semiconductor devices that allow various new capabilities. As the need for semiconductor devices intensifies consistently, advanced packaging techniques deliver the form factor and processing power needed for the digitized world. Such trends in the semiconductor requirement are anticipated to offer lucrative opportunities for the growth of inspection and metrology equipment.
- Furthermore, capacity developments in the semiconductor industry are also aiding the growth of the market studied. For instance, according to SEMI Equipment Market Data Subscription (EMDS), the semiconductor industry's foot is firmly on the accelerator as the capacity expansion efforts are also aiding the expansion of the front-end and back-end semiconductor equipment industries to meet growth drivers.
- Billings for semiconductor equipment in the first quarter of 2023 increased by 9% year-over-year to USD 26.8 billion. Advanced logic and foundry capacity expansions, DRAM investment recovery, and robust NAND Flash spending drove the equipment market’s growth.
- As metrology and inspection are crucial processes involved in the manufacturing of semiconductor chips, such trends also create a favorable outlook for the laser market. Such trends are anticipated to support the growth of metrology and inspection equipment and associated laser systems during the forecast period.
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Asia-Pacific Expected to Witness High Market Growth
- The semiconductor industry's manufacturing and consumption are major factors in the Asia-Pacific region. The laser market in the Asia-Pacific region is anticipated to grow as a result of the communication industry's rapid expansion in countries like South Korea, China, Japan, and India. In addition, the growing consumer electronics industry in this region, along with the rise in consumer device manufacturing, is driving up the demand for semiconductor lasers in various production processes.
- The region also boasts many initiatives by governments to boost the semiconductor industry. For instance, the Chinese government's National Integrated Circuit Industry Development Guidelines and the Made in China 2025 initiative aim to bolster the growth of the local semiconductor industry in the country, reducing the level of dependence on other countries.
- China is quickly becoming one of the leading nations in producing fiber lasers. In addition, the Chinese government is striving to enhance its manufacturing industry by the year 2025 to become the leading global factory. This is increasing the need for fiber lasers in metal cutting, industrial cleaning, and various other applications in China, which in turn is increasing the demand for semiconductor lasers.
- A similar trend is being observed across other countries. For instance, in May 2023, according to the India Brand Equity Foundation (IBEF), the Indian government implemented a long-term plan for semiconductor development with the USD 10.2 billion Semicon India Program. Such initiatives in the region are expected to drive the growth of the semiconductor industry ecosystem, creating opportunities in the laser market as well.
- Semiconductors remain the backbone material of electronics integrated with modern devices such as cars, smartphones, robots, and many other intelligent devices. Driven by the continuous need for miniaturized and robust chips, current semiconductor manufacturing technologies face increasing pressure. The growing adoption of automobiles in the Asia-Pacific region also creates a favorable outlook for the growth of the market studied.
- Japan stands out in the market as one of the leading suppliers of semiconductor materials and equipment. Before the fiscal year ends in March 2028, 99.9% of homes in Japan are expected to have fast fiber-optic connections. Hence, the country is anticipated to hold notable growth opportunities for lasers used in the semiconductor industry.
- The need for semiconductors has grown significantly in Asia-Pacific in recent years. As prominent semiconductor customers in several countries strengthen their supply chains, investments in the semiconductor industry value chain are further accelerated. Many Japanese and foreign semiconductor companies are currently ready to begin mass production in new factories in Japan, with the opening of TSMC's Kumamoto fab in February 2024. This development is expected to boost Japan's entire semiconductor supply chain and accelerate its growth, enhancing the country's capacity for semiconductor manufacturing.
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