Report Summary Catalogue Methodological

Etching is one of the core processes in semiconductormanufacturing—alongside lithography and thin film deposition—and is primarilyresponsible for removing specific materials to form intricate microstructures.Etching equipment accounts for approximately 22%–25% of the total value offront-end semiconductor manufacturing tools, highlighting its critical role inthe industry.

Plasma dry etching is currently the mainstream etching technique and ismainly divided into two categories: ICP (Inductively Coupled Plasma) and CCP(Capacitively Coupled Plasma). ICP is suitable for etching silicon, metals, andsome dielectrics, while CCP is mainly used for dielectric etching. The marketshare between ICP and CCP is fairly balanced.

As transistor dimensions continue to shrink, demands for etchingprecision are growing. Atomic Layer Etching (ALE) has emerged to meet thesechallenges. ALE, considered the mirror process of ALD (Atomic LayerDeposition), features self-limiting reactions and achieves atomic-levelprecision. It is already being applied in processes requiring atomic-levelcontrol, such as self-aligned contacts, and holds significant promise forfuture scaling.

Market Overview:

Accordingto LookWhole Insight, the global Semiconductor Etch Equipment market isprojected to reach USD 23.83 Billion in 2024. It is expected to grow to USD 47.03Billion by 2033, registering a compound annual growth rate (CAGR) of 7.85%during the forecast period (2025–2033).

Key Development Trends

1. NewDemand Driven by Advanced Nodes & Memory

(1) Advanced nodesrequire significantly more etching steps. As the chip industry evolves from7nm/5nm to even smaller nodes, multi-patterning lithography becomes necessary,demanding higher etching precision and repeatability. The number of etching stepsincreases dramatically:

65nm node: ~20 etchsteps

10nm node: ~117etch steps

5nm node: ~160 etchsteps

With each nodeadvancement, total etching requirements rise sharply.

Capitalinvestment also surges:

For a fab with amonthly capacity of 50,000 wafers:

90nm node equipmentinvestment ≈ USD 2.134 billion

20nm node equipmentinvestment ≈ USD 4.746 billion

—an increase of 122%.

(2)Flash Memory Evolution: From 2D to 3DNAND

As Flash memory shifts from 2D NAND to 3DNAND, chip structure becomes more complex, increasing the demand for etchingequipment. The linewidth of 2D memory devices is nearing physical limits, whileNAND Flash has entered the 3D era.

Currently, 128-layer 3D NAND is in massproduction, and 200+ layers are entering the market, with even higher stacksunder development.

In 3D NAND manufacturing, increasingintegration is achieved not by shrinking the linewidth, but by increasingvertical stack height. Etching must form extremely deep holes or trenches inoxide-nitride stacks, with aspect ratios from 40:1 to 60:1 or higher. Thisdrives demand for more precise etching technology and a greater share of totalequipment spend.

2.Dry Etching Becomes the Mainstream Technology with Over 90% Adoption

Etchingcan be classified into wet etching and dry etching. Wet etching generally haspoor anisotropy, leading to lateral etching and deviation in patterndefinition. It is typically used in larger geometry processes or post-dry-etchcleaning steps.

Dryetching, dominated by plasma techniques, now accounts for more than 90% of alletching processes. Plasma etching equipment is second only to lithography interms of importance and complexity in microfabrication. These systems consistof multiple vacuum plasma reaction chambers and transfer modules. The basicprinciple is to use plasma discharge to generate chemically active particlesthat bombard the surface, react with the material, and produce volatileby-products that are evacuated, thus forming precise microstructures.

3. Developmentof Atomic Layer Etching (ALE)

Traditionalplasma etching equipment faces a series of challenges such as etching damage,load effect and control accuracy, while atomic layer etching (ALE) can achieveprecise etching at the single atomic level and is an effective solution. ALEcan be regarded as a mirror process of ALD. Its principle is: 1) Introduce thecombined gas into the etching chamber and adsorb it on the surface of thematerial to form a combined layer. This is a modification step and hasself-stopping properties; 2) Remove the excess combined gas in the chamber andintroduce etching gas to bombard the etching surface to remove the atomic-levelcombined layer and expose the unmodified surface. This is an etching step andalso has self-stopping properties. After the above steps are completed, thesingle atomic layer film on the surface can be accurately removed.

Global Semiconductor Etch Equipment Market:Competitive Landscape

The globaletching equipment market is characterized by an oligopolistic structure, withthe three major players—LAM Research, Tokyo Electron (TEL), and AppliedMaterials (AMAT)—collectively accounting for over 90% of the global marketshare. Among them, LAM alone commands nearly 50%, highlighting its strongmonopoly.

LAM Research isthe world’s largest etching equipment supplier and also holds strongcompetitive advantages in thin film deposition, cleaning, and related areas. Itoffers a broad portfolio of etching products including Kiyo®, Versys®, Flex®,Vantex®, and Syndion®. With a globally distributed customer base, LAM held over45% of the global market share in etching equipment as of 2021 and maintainsstrong competitiveness in both conductor and dielectric etching processes.

Tokyo Electron(TEL) is one of the earliest-established semiconductor equipment giants andremains highly competitive in several categories such as coater/developersystems, thin film deposition, etching, cleaning, and inspection. Etching isone of its core product lines, with tools such as Episode™ UL, Tactras™, andCertas LEAG™ widely adopted in both dielectric and conductor etching (primarilydielectric). TEL held approximately 25% of the global etching equipment marketin 2021, ranking second globally behind LAM.

AppliedMaterials (AMAT) is one of the most representative platform companies in thesemiconductor equipment space, with products spanning nearly all categoriesexcept for lithography. Etching is one of its key business segments. In 2021,AMAT held 17.0% of the global etching equipment market, solidifying itsposition as the third-largest supplier. AMAT’s etching systems are mainly usedfor conductor etching, with limited presence in dielectric etching.

At the sametime, domestic substitution in China has become a mainstream trend within thesemiconductor industry and is expected to continue. The Chinese government hasintroduced extensive support policies, with semiconductor equipment being a topstrategic priority. For example, in Shanghai’s 14th Five-Year Plan for AdvancedManufacturing (2021), 5nm etching equipment was explicitly identified as adevelopment focus. In May 2024, the third phase of China's National IntegratedCircuit Industry Investment Fund (Big Fund) was launched with registeredcapital of RMB 344 billion, exceeding the total of the previous two phasescombined.

Chinesecompanies such as AMEC (Advanced Micro-Fabrication Equipment Inc.) and NAURATechnology Group have become key players in domestic etching equipment:

AMEC focuses onetching systems and has strong competitiveness in both CCP and ICPtechnologies. Its etching equipment has already been mass-deployed in advanced5nm and below international production lines.

NAURA, anothermajor player, has shipped over 3,200 ICP chambers as of the end of 2023,sharing the domestic market leadership with AMEC.

Report Framework and Key Highlights:

MarketDynamics: Identification of major market drivers, restraints,opportunities, and challenges.

TrendAnalysis: Examination of ongoing and emerging trendsimpacting the market.

CompetitiveLandscape: Detailed profiles and market positioning of majorplayers, including market share, operational status, product offerings, andstrategic developments.

StrategicAnalysis Tools: SWOTAnalysis, Porter’s Five Forces Analysis, PEST Analysis, Value Chain Analysis

MarketSegmentation: By type, application, region, and end-userindustry.

Forecastingand Growth Projections: In-depth revenue forecasts and CAGRanalysis through 2033.

This report equips readers with critical insights tonavigate competitive dynamics and develop effective strategies. Whetherassessing a new market entry or refining existing strategies, the report servesas a valuable tool for:

Industry players

Investors

Researchers

Consultants

Business strategists

And all stakeholders with an interest or investmentin the Semiconductor Etch Equipment market.

Global Semiconductor Etch Equipment Market:Segmentation Analysis and Strategic Insights

This section of the report provides an in-depthsegmentation analysis of the global Semiconductor Etch Equipment market. Themarket is segmented based on region (country), manufacturer, product type, andapplication. Segmentation enables a more precise understanding of marketdynamics and facilitates targeted strategies across product development,marketing, and sales.

By breaking the market into meaningful subsets,stakeholders can better tailor their offerings to the specific needs of eachsegment—enhancing competitiveness and improving return on investment.

Global Semiconductor EtchEquipment Market: Market Segmentation Analysis

The research report includes specificsegments by region (country), manufacturers, Type, and Application. Marketsegmentation creates subsets of a market based on product type, end-user orapplication, Geographic, and other factors. By understanding the marketsegments, the decision-maker can leverage this targeting in the product, sales,and marketing strategies. Market segments can power your product developmentcycles by informing how you create product offerings for different segments.

Report Framework and Chapter Summary

Chapter1: Report Scope and Market Definition

Thischapter outlines the statistical boundaries and scope of the report. It definesthe segmentation standards used throughout the study, including criteria fordividing the market by region, product type, application, and other relevantdimensions. It establishes the foundational definitions and classificationsthat guide the rest of the analysis.

Chapter2: Executive Summary

Thischapter presents a concise summary of the market’s current status and futureoutlook across different segments—by geography, product type, and application.It includes key metrics such as market size, growth trends, and developmentpotential for each segment. The chapter offers a high-level overview of the SemiconductorEtch Equipment Market, highlighting its evolution over the short, medium, andlong term.

Chapter3: Market Dynamics and Policy Environment

Thischapter explores the latest developments in the market, identifying key growthdrivers, restraints, challenges, and risks faced by industry participants. Italso includes an analysis of the policy and regulatory landscape affecting themarket, providing insight into how external factors may shape futureperformance.

Chapter4: Competitive Landscape

Thischapter provides a detailed assessment of the market's competitive environment.It covers market share, production capacity, output, pricing trends, andstrategic developments such as mergers, acquisitions, and expansion plans ofleading players. This analysis offers a comprehensive view of the positioningand performance of top competitors.

Chapters5–10: Regional Market Analysis

Thesechapters offer in-depth, quantitative evaluations of market size and growthpotential across major regions and countries. Each chapter assesses regionalconsumption patterns, market dynamics, development prospects, and availablecapacity. The analysis helps readers understand geographical differences andopportunities in global markets.

Chapter11: Market Segmentation by Product Type

Thischapter examines the market based on product type, analyzing the size, growthtrends, and potential of each segment. It helps stakeholders identifyunderexplored or high-potential product categories—often referred to as “blueocean” opportunities.

Chapter12: Market Segmentation by Application

Thischapter analyzes the market based on application fields, providing insightsinto the scale and future development of each application segment. It supportsreaders in identifying high-growth areas across downstream markets.

Chapter13: Company Profiles

Thischapter presents comprehensive profiles of leading companies operating in themarket. For each company, it details sales revenue, volume, pricing, grossprofit margin, market share, product offerings, and recent strategicdevelopments. This section offers valuable insight into corporate performanceand strategy.

Chapter14: Industry Chain and Value Chain Analysis

Thischapter explores the full industry chain, from upstream raw material suppliersto downstream application sectors. It includes a value chain analysis thathighlights the interconnections and dependencies across various parts of theecosystem.

Chapter15: Key Findings and Conclusions

Thefinal chapter summarizes the main takeaways from the report, presenting thecore conclusions, strategic recommendations, and implications for stakeholders.It encapsulates the insights drawn from all previous chapters.

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