Thomas Alsop
Research expert covering the global hardware industry
Semiconductor manufacturing equipment - statistics & facts
The semiconductor industry, a core part of modern technology, relies heavily on specialized manufacturing equipment. Whether it be in the production of mature semiconductors critical to the automotive, industrial, or telecommunications industries, or the advanced semiconductors helping to power the artificial intelligence (AI) revolution, all are dependent on precision manufacturing to help drive innovation.
ASML’s role in chip production
ASML ranks as the largest semiconductor manufacturing equipment vendor in terms of market capitalization. The Dutch company is a leading manufacturer of extreme ultraviolet (EUV) equipment, advanced manufacturing systems with the capability of developing the most powerful chips. ASML’s EUV technology, a key revenue driver for the company, plays a critical role in the production of chips used in AI applications and electric vehicles. As a leading provider of lithography systems for the semiconductor industry, ASML boasts TSMC, Intel, and Samsung as its key partners – the largest semiconductor manufacturers in the world.Semiconductor equipment from around the world
Across the Atlantic is Applied Materials, a company whose focus is similarly on the design of manufacturing systems used to fabricate semiconductor chips. Much like ASML, Applied Materials counts the likes of TSMC, Intel, and Samsung as some of its top customers, once again highlighting the importance of equipment suppliers to the semiconductor manufacturing ecosystem. Other notable manufacturing equipment specialists include Lam Research and KLA Corporation from the United States, as well as Tokyo Electron from Japan. This mix of companies forming part of the semiconductor supply chain reflects the globalized nature of the industry as a whole.Geopolitics are shaping the semiconductor industry
Asia-Pacific is a key hub for semiconductor manufacturing worldwide. As a result, the region is the biggest spender on semiconductor manufacturing equipment, led by the likes of China, South Korea, and Taiwan. However, the concentration of manufacturing capacity in just a few regions has raised concerns. As a result, governments have taken steps to address this reliance by investing in domestic semiconductor manufacturing and adopting new regulatory policies to maintain technological security. Examples include regulatory changes made by the United States, Japan, and the Netherlands that restrict the export of some of ASML’s advanced chip manufacturing machines to China.Equipment specialists pushed to the limit
With semiconductor demand set to increase across all sectors, the battle between companies and between regions across the world to obtain the necessary equipment is intense. As such, semiconductor equipment suppliers must navigate a complex web of technological and supply chain challenges in order to meet the needs of their customers and serve a growing semiconductor industry.
