The global Wafer Used Dry Etching Equipment Market size was valued at US$ 9.67 billion in 2024 and is projected to reach US$ 18.42 billion by 2032, at a CAGR of 9.7% during the forecast period 2025-2032.
Dry etching equipment is a critical semiconductor manufacturing tool that uses plasma to selectively remove material from wafers with high precision. The process involves three main types: silicon etch (for silicon substrates), dielectric etch (for insulating layers), and conductor etch (for metal interconnects). Key components include RF power sources, vacuum chambers, and advanced gas delivery systems that enable nanometer-scale patterning.
Market growth is driven by surging demand for advanced logic and memory chips, particularly for 5G, AI, and IoT applications. The transition to smaller nodes (below 7nm) and adoption of new architectures like GAA (Gate-All-Around) requires more sophisticated etching solutions. While the industry faces challenges from geopolitical trade restrictions and supply chain complexities, recent expansions by leading foundries (TSMC, Samsung, and Intel) in the U.S., Europe, and Asia are creating new equipment demand. Lam Research, Applied Materials, and Tokyo Electron collectively hold over 75% of the market share, with ongoing R&D focusing on high-aspect-ratio etching for 3D NAND and DRAM applications.
Segment Analysis:
By Type
Silicon Etch Segment Dominates Due to High Demand in Semiconductor Manufacturing
The global wafer used dry etching equipment market is segmented based on type into:
- Silicon Etch
- Dielectric Etch
- Conductor Etch
- Compound Semiconductor Etch
- Others
By Application
Foundry Application Leads Owing to Increasing Semiconductor Fabrication Activities
The market is segmented by application into:
- IDM (Integrated Device Manufacturers)
- Foundry
- Memory
- Logic & MPU
- Others
By Technology
Reactive Ion Etching (RIE) Maintains Strong Position Due to Superior Etching Control
Key technology segments include:
- Reactive Ion Etching (RIE)
- Deep Reactive Ion Etching (DRIE)
- Inductively Coupled Plasma (ICP) Etching
- Cryogenic Etching
- Others
By Wafer Size
300mm Segment Shows Strong Adoption to Support Advanced Node Manufacturing
The market is segmented by wafer size into:
Regional Analysis
North America
The North American wafer dry etching equipment market is driven by robust semiconductor R&D investments and strong demand from foundries and IDMs. The U.S. CHIPS Act allocations of $52.7 billion for domestic semiconductor manufacturing have accelerated the adoption of advanced etching systems. Lam Research and Applied Materials, headquartered in the region, dominate technology development with their plasma etching innovations for sub-7nm nodes. While environmental regulations on semiconductor emissions add operational complexities, the region maintains leadership in cutting-edge applications like 3D NAND and advanced logic devices. Collaborative industry-academia programs at institutions like MIT and Stanford continue pushing the boundaries of dry etch process technology.
Europe
Europe’s market focuses on specialized etching applications, with ASML’s EUV lithography advancements creating downstream demand for precise pattern transfer capabilities. The region sees growing adoption of atomic layer etching (ALE) systems for MEMS and power semiconductor manufacturing. EU-funded initiatives like the Chips Joint Undertaking program aim to boost Europe’s semiconductor ecosystem, indirectly benefiting etching equipment suppliers. However, the market faces challenges from limited local wafer fab capacity compared to Asia. Companies like Oxford Instruments and SPTS Technologies specialize in niche etching solutions, particularly for compound semiconductors and advanced packaging applications rather than high-volume silicon processing.
Asia-Pacific
As the largest and fastest-growing regional market, Asia-Pacific accounts for over 60% of global wafer dry etching equipment demand, fueled by massive semiconductor expansions in China, Taiwan, South Korea, and Japan. TSMC’s $44 billion capex plans for 2023 and China’s intensive efforts to build domestic semiconductor capabilities (including SMIC’s Beijing fab expansion) drive substantial equipment orders. Tokyo Electron and Hitachi High-Tech leverage their regional presence to capture this growth. The market shows increasing differentiation between mature node capacity additions in China versus cutting-edge development in Taiwan and South Korea. While geopolitical factors occasionally disrupt supply chains, the region’s unparalleled manufacturing scale ensures its continued dominance in etching equipment consumption.
South America
South America represents a developing market with limited but emerging opportunities. Brazil’s Ceitec and a few packaging/test facilities create localized demand, though the region lacks advanced wafer fabs. The market primarily consumes mid-range etching systems for discrete devices and MEMS applications rather than leading-edge logic/memory production. Economic instability and inadequate semiconductor infrastructure hamper growth potential. However, recent government initiatives in Argentina and Chile to develop technology hubs show early promise for creating small-scale demand in academic and specialized industrial applications.
Middle East & Africa
This region remains in the nascent stage of semiconductor manufacturing development. While countries like Saudi Arabia and UAE have announced ambitions to enter the chip industry through projects like Saudi’s $10 billion semiconductor push, current dry etching equipment demand is minimal. The few operational fabs focus on power electronics and basic IC packaging. Growth prospects hinge on successful implementation of long-term technology transfer programs, foreign investments, and workforce development initiatives. For now, the market primarily serves limited maintenance and upgrade needs of existing industrial electronics manufacturers rather than new capacity additions.
List of Major Dry Etching Equipment Manufacturers
- Lam Research Corporation (U.S.)
- Tokyo Electron Limited (Japan)
- Applied Materials, Inc. (U.S.)
- Hitachi High-Tech Corporation (Japan)
- SEMES Co., Ltd. (South Korea)
- AMEC (China)
- NAURA Technology Group Co., Ltd. (China)
- SPTS Technologies (KLA Corporation) (U.K.)
- Oxford Instruments (U.K.)
- ULVAC, Inc. (Japan)
- Plasma-Therm LLC (U.S.)
MARKET DYNAMICS
The global semiconductor industry is experiencing unprecedented growth, with projections indicating continued expansion in the coming years. This growth stems from ubiquitous chip demand across consumer electronics, automotive applications, and IoT devices. Wafer dry etching equipment enables precise pattern transfer during semiconductor manufacturing, making it indispensable for advanced node production. With semiconductor foundries ramping up capacity to meet demand, manufacturers are investing heavily in dry etching solutions to enhance production efficiency and yield.
The transition to smaller process nodes below 7nm has significantly increased the complexity of etching requirements. Advanced logic and memory devices now demand atomic-level precision, driving adoption of cutting-edge dry etchers with enhanced control capabilities. Leading manufacturers have responded with innovative systems that provide superior etch uniformity and profile control, enabling continued semiconductor miniaturization.
Memory manufacturers are accelerating investments in 3D NAND and DRAM production facilities worldwide, creating substantial opportunities for wafer dry etching equipment providers. The shift to 3D NAND architecture has been particularly impactful, requiring specialized etching solutions capable of processing high-aspect-ratio structures. With memory layers continuing to stack higher – currently exceeding 200 layers – etching systems must deliver exceptional uniformity across increasingly complex vertical structures.
The wafer dry etching equipment market continues to face significant supply chain challenges, particularly for specialized components and materials. Critical parts including RF generators, vacuum pumps, and precision valves often face extended lead times, negatively impacting equipment delivery schedules. These bottlenecks have become more pronounced as semiconductor manufacturers accelerate capacity expansions while competing for limited component supplies.
Additionally, geopolitical trade restrictions have complicated procurement strategies for equipment manufacturers. Many key subsystems incorporate components from multiple international suppliers, making comprehensive supply chain reshoring impractical. The highly specialized nature of etching equipment components further limits alternative sourcing options, potentially constraining market growth in the short to medium term.
As semiconductor manufacturers transition to sub-5nm process nodes, wafer dry etching faces unprecedented technical challenges. Atomic-scale precision requirements have dramatically increased process complexity, requiring equipment providers to continuously innovate. Maintaining acceptable yields while etching increasingly fragile materials stacks demands highly sophisticated process control capabilities.
The introduction of novel materials like high-mobility channels and low-k dielectrics has further complicated etching processes. These materials often exhibit significantly different etch characteristics compared to traditional silicon-based components, requiring specialized chemistries and hardware modifications. Such complexities necessitate substantial R&D investments from equipment providers, potentially delaying availability of production-worthy solutions.
The market is highly fragmented, with a mix of global and regional players competing for market share. To Learn More About the Global Trends Impacting the Future of Top 10 Companies .
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