Market Trends of North America Semiconductor Etch Equipment Industry
This section covers the major market trends shaping the North America Semiconductor Etch Equipment Market according to our research experts:
The United States’ strategies for manufacturing semiconductors and peripheral products to avoid trade tensions with China are driving the market in North America.
- Domestic semiconductor manufacturing is essential for the administration of the U.S. government. The new administration is expected to fix the rising chip shortages and address lawmakers' concerns that outsourcing chipmaking had made the United States more vulnerable to supply chain disruptions. In an executive action, Biden started a 100-day review that could significantly boost American chip companies with additional new policies and government support. This is increasing the North American semiconductor Etch Equipment market to grow.
- Most demand for chips in the United States includes large P.C.s and information and communications infrastructure (including data centers and network equipment), application markets, smartphones, and industrial equipment. Smartphone manufacturers based out of the United States, such as Apple, are prominent customers of TSMC. The United States government has called for USD 50 billion in funding to support domestic chip manufacturing. TSMC is weighing plans to pump tens of billions of dollars more into the chip factories in the U.S. state of Arizona than it had previously disclosed. In addition, TSMC is expected to compete against Intel Corp and Samsung Electronics Co Ltd for subsidies from the U.S. government in building the plants. These all create a conducive environment for the growth of the semiconductor Etch Equipment market in the region.
- New U.S. trade agreements are another clear step that would benefit the semiconductor business in North America. The United States National Technology and Industrial Base might be expanded to include allies such as Japan, South Korea, Germany, and the Netherlands, dominant players in the semiconductor supply chain. In addition, trade agreements between the United States and the European Union, such as the Comprehensive and Progressive Trans Partnership (formerly the TPP) and the Transatlantic Trade and Investment Partnership, would increase access to imported semiconductor-related goods and services while lowering foreign barriers to U.S. semiconductors and high-tech devices. Because of this, the semiconductor Etch Equipment market in the region will increase.
- The U.S. Innovation and Competition Act (USICA) and the Administration are working with the House and Senate to provide $52 billion to catalyze more private-sector investments in the semiconductor market and continued American technological leadership. For example, S.K. Group investments in a new R&D center in USA and Micron to expand U.S. production. Due to this, the semiconductor Etch Equipment market in the region will increase.
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The application of advanced semiconductor chips in 5G and Industry 4.0 is fostering the market growth
- Companies in the North American region are focusing on implementing 5G technology in Industrial Automations. For example, The Digital Manufacturing Institute and the National Center for Cybersecurity in Manufacturing in Chicago have installed a private 5G network with connections to sensors to automate, monitor, and provide predictive maintenance for factory equipment, which will serve as a real-world model for companies investigating the potential benefits of Industry 4.0 technologies and applications.
- Canada has a significant reputation internationally as a country open for business. It is poised to take essential steps to emerge as a prominent region in the future semiconductor foundry landscape. In addition, the country is witnessing significant partnership activities in the market. For instance, the Canadian government has launched a Canadian Dollar 150 million semiconductor challenge and a Canadian Dollar 90 million to the national research council of Canada for photonics fabrication centers used in the telecommunication network.
- There are applications of semiconductors in communication network infrastructure. To encourage the in-house manufacturing of semiconductors and Semiconductor Etch Equipment, the Canadian government has restricted foreign telecommunication network infra providers from operating in the country. For example, the government prohibits Huawei and ZTE goods and services from being used in Canada's telecommunications systems.
- Samsung Electronics plans to set up a USD 17 billion chip fabrication plant in Taylor, Texas. This new facility will produce goods based on sophisticated process technologies for use in mobile, 5G, high-performance computing, and artificial intelligence, which will drive the Semiconductor Etch Equipment market in the region.
- Lam Research Corporation is an American supplier of wafer fabrication equipment and is working on developing wireless connectivity by combining 5G and Wi-Fi 6/6E. These two technologies in the same or nearby frequency bands will make parallel network setup extremely difficult. Higher scandium doping levels (usually >20 percent) in aluminum nitride films are currently being used by the company to improve device performance. This shows the rampant technological development of the region's semiconductor Etch equipment market.
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