Semiconductor equipment market seen doubling to $210B by 2035

A new market forecast says the global semiconductor equipment market will rise from $99.1 billion in 2025 to $210.02 billion by 2035, driven by fab subsidies, high-NA EUV adoption and AI chip demand. Asia-Pacific remains the largest region, while back-end packaging, testing and advanced-node tools gain share.

Why it matters: - Semiconductor equipment sits at the center of chip supply growth, and the forecast points to sustained demand for the tools needed to build AI, memory and advanced logic chips. - Government subsidies, fab reshoring and AI infrastructure spending are extending equipment order cycles and reducing the risk of a short-term slowdown. - The market's expected rise to $210.02 billion by 2035 signals continued capital spending across wafer processing, lithography, packaging and test.

What happened: - The global semiconductor equipment market was estimated at $99.10 billion in 2025. - The market is projected to reach $106.83 billion in 2026 and $210.02 billion by 2035. - The forecast implies a 7.80% compound annual growth rate from 2025 to 2035. - Market Research Future published the forecast in a report on semiconductor equipment size, share and industry analysis. - The report was issued June 24, 2026. - The report includes a sample PDF request and a full market description.

The details: - Government support is pulling equipment procurement forward, including the U.S. CHIPS and Science Act's $52.7 billion allocation and the European Chips Act's 43 billion euro mobilization target. - Japan's JASM consortium has secured 1.2 trillion yen in combined public-private finance for a Kumamoto fab complex. - Phase-2 CHIPS Act awards for advanced-logic and advanced-packaging facilities are expected to require more than $15 billion in chip fabrication tools and semiconductor lithography systems within the first 24 months after groundbreaking. - High-NA EUV adoption is another major driver, with ASML's 0.55-NA scanner priced above $350 million per unit and already in pilot production at two leading-edge foundries in 2025. - Volume deployment of high-NA EUV tools is expected to reach five fabs by 2028. - The report says each high-NA tool reduces multi-patterning steps but requires upgrades to masks, pellicles and etch deposition equipment. - AI and high-performance computing are pushing leading-edge design roadmaps toward 2 nm and 1.4 nm nodes for 2027-2029 tape-outs. - Hyperscale data center operators including Microsoft, Google, Amazon and Meta plan to invest more than $300 billion in AI infrastructure through 2027. - High-bandwidth memory for AI accelerators is also driving spending on memory-specific etch deposition tools and advanced packaging machinery, especially in South Korea and Taiwan. - By equipment type, front-end tools are the dominant segment and are growing at an 8.81% CAGR through 2035. - Back-end equipment generated about $28.7 billion in 2025 revenue. - By wafer size, 300mm wafers held a 67.9% share in 2025. - 200mm wafers are projected to grow at a 7.38% CAGR through 2035. - 150mm and below wafer sizes were valued at $3.26 billion in 2025. - By technology generation, 12nm and below is the highest-value node tier. - 16nm to 22nm serves 5G RF, networking and automotive ADAS applications. - 32nm to 45nm continues to serve microcontroller, power management IC and embedded flash production. - Mature nodes remain important for automotive, industrial IoT and analog chip manufacturing. - By application, memory demand is rising on DRAM and 3D NAND transitions to HBM4 and later stacking generations. - Logic remains the main end-use for leading-edge chip fabrication tools. - Analog production relies on mature-node equipment for mixed-signal and power applications. - Discrete and RF devices are driving investment in SiC and GaN wafer processing equipment. - Foundries were the largest end-use category in 2025 with a 49.2% share. - Integrated device manufacturers generated $30.15 billion in revenue in 2025. - OSATs are the fastest-growing end-use category, with an 8.39% CAGR. - Research and development labs continue to buy pilot-line tools ahead of high-volume deployment. - Asia-Pacific accounted for 49.3% of market revenue and is forecast to grow at a 9.70% CAGR through 2035. - North America held 23.8% of revenue in 2025. - Europe accounted for 14.2% of the market. - South America generated $1.38 billion in 2025 semiconductor equipment revenue. - The Middle East and Africa are growing from a small base at a 1.7% CAGR. - Applied Materials remains the largest semiconductor equipment company by revenue. - ASML is the sole global supplier of extreme ultraviolet lithography systems and the exclusive developer of high-NA EUV scanners. - Lam Research leads in etch deposition equipment and surface preparation platforms. - Tokyo Electron is a major supplier of wafer processing equipment. - KLA is the leader in process control metrology and inspection systems. - Screen Holdings supplies wafer cleaning, thermal processing and coating equipment. - Advantest leads in semiconductor test equipment. - Teradyne supplies automated test equipment and industrial automation platforms.

Between the lines: - The forecast points to a market increasingly shaped by a few must-have technologies rather than broad-based cyclical buying alone. - Advanced packaging, chiplets and high-bandwidth memory are shifting more value toward back-end equipment. - AI-driven process control and predictive maintenance could make tool purchases less transactional and more software-linked over time. - Export controls and domestic substitution programs are likely to keep regional supply chains fragmented.

What's next: - Equipment demand should stay tied to fab buildouts in the U.S., Europe, Japan, Taiwan, South Korea and China. - High-NA EUV rollout and sub-3 nm transitions will likely keep lithography, etch, metrology and packaging suppliers under sustained pressure to ship new tools. - The report expects back-end equipment's share of the market to rise from about 25% today to 32% by 2035. - The report also sees chiplet-based designs reaching about 30% of advanced-logic production by 2032. - Equipment-as-a-service, retrofit demand and refurbishment markets are expected to add new revenue streams.

The bottom line: - The semiconductor equipment market is moving into a long growth cycle powered by AI, advanced nodes and government-backed factory construction, with Asia-Pacific still leading the global buildout.