Semiconductor

capital equipment
Wafer handling & inspection markets

AUGUST 2023
Semiconductor supply chain includes upstream suppliers of materials and
equipment, and downstream assembly, testing, and packaging

Production
ELECTRONIC
Assembly, Sales and DEVICES
R&D Design Manufacturing
Testing, Packaging Distribution

Design Companies Manufacturers Outsourced Electronics

(Fabless) (Foundries) Assembly & Test Equipment
(OSAT) Manufacturers (OEMs
and ODMs)2
Downstream Suppliers
Competitive and $602B
Integrated Device Manufacturers (IDM) Global
Pre-competitive

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research by 2022 sales
corporations, IP Block/ EDA Material Equipment
universities & Core Suppliers Suppliers1 Suppliers Suppliers
other research
institutions

Upstream Suppliers

1. Electronic Design Automation, 2. Firms engaged in branding, marketing, designing, and manufacturing electronic equipment that incorporates
semiconductor content into electronic products including Original Equipment Manufacturers (OEM) and Original Design Manufacturers (ODM)
Source: Gartner; BCG analysis 1
There are two broad categories of equipment used in the
manufacturing of semiconductors

Upstream equipment Downstream equipment

Machinery involved in wafer fabrication Machinery involved in assembly, testing
(86% of equipment costs) and packaging
(14% of equipment costs)

• Lithography • Test and related equipment

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• Photoresist processing • Assembly equipment
• Material removal & cleaning
• Doping
• Deposition
• Rapid thermal processing &
oxidation / diffusion
• Process control
• Manufacturing automation
• Other equipment

Source: SEMI; BCG analysis 2

Aggregate growth in semiconductor equipment expected to
be ~8% through 2025
Semiconductor equipment market ($B)
'20-'25 CAGR

$105B
$102B
$98B $97B
Lithography & photoresist 8.7%
$89B
processing1

$73B
Material removal & cleaning2 7.4%
$63B
Doping 5.2%

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Deposition
8.2%
RTP & oxidation / diffusion
Process control 6.6%

Manufacturing automation & 7.1%

other WFE
5.0%
Test and related systems
Assembly equipment 5.0%

2019 2020 2021 2022E 2023E 2024E 2025E 7.6%

1. Includes both lithography and photoresist 2. Includes CMP equipment

Source: VLSI; SME (May 2021); BCG analysis 3
 Equipment: Most categories are geographically concentrated
with highest concentrations in US, Japan, and Europe
Global production of equipment by headquarters region1 (%, 2021)
Lithography 92% 7%
Photoresist processing 7% 92%
Manufacturing automation 4% 12% 61% 23%
Other WFE 6% 5% 45% 42%
Front-
end Material removal & cleaning 54% 2% 6% 36%
RTP2 and oxidation/diffusion 54% 3% 2% 40%

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Deposition 62% 10% 7% 20%
Process control 73% 9% 13% 6%
Doping 87% 9% 5%

ATP Testing equipment 52% 2% 40% 6%

Assembly equipment 20% 11% 17% 28% 24%

US Europe Mainland China South Korea Japan Singapore Rest of World

1. Shown as geographic concentration based on company headquarters location 2. RTP = Rapid Thermal Processing
Source: Gartner (2021); VLSI (2021); Morgan Stanley research; BCG analysis 4
Manufacturing automation - Wafer
handling subsystems

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Front End Subsystems | Wafer Handling Subsystems
Market Attractiveness Required Capabilities in Opportunity Area

Ability to pick, position and align

Precision
different wafer sizes with extreme
~$2.9B 1.9% 30-45% Handling
precision

Throughput Ability to facilitate high throughput of

2021 TAM1 Market CAGR Average Gross
2021-2024 Margins Speed wafers in and out of process chambers

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Data
Representative companies in the space Integration with Management Execution
Integration &
System for wafer tracking
Monitoring

Ability to operate within vacuum and

Environment
atmospheric environments

1. TAM includes Global Wafer Handling Subsystems (Systems and Dry Robotics)
Source: VLSI, Gartner, BCG Analysis 6
Within Wafer Handling Subsystems, there are 3 types of
equipment used during front end "Pick & Place" operations

Wafer Transport Systems Atmospheric Robotics Vacuum Robotics

Load Ports • Used for precision • Used for precision
• Used for input/ output placement and placement and
alignment of wafer for alignment of wafer for

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of wafers into the
system for processing processing in processing within
atmospheric processing vacuum processing
environments environments
EFEMs
• Used in conjunction
with a robot to
automatically move
wafer into mfg. system
for processing

Source: Expert Interviews; BCG Analysis 7

$2.9B market has shown slow growth; vacuum robotics
is the fastest growing equipment category
Global Wafer Handling Subsystems Market ($B)
'18 – '21 '21 – '24
1.9% CAGR CAGR
3.5% $3.1B
$2.9B
$2.6B Wafer
Transport 2.7% 0.5%
Systems
$1.9B $1.9B
$1.8B $1.8B
$1.8B

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$1.7B Atmospheric
$1.5B 0.7% 3.0%
Robotics

$0.6B $0.6B $0.6B

$0.6B $0.6B
$0.6B $0.5B Vacuum
11.5% 6.0%
$0.5B $0.5B $0.6B Robotics
$0.3B $0.3B $0.4B $0.5B

2018 2019 2020 2021 2022 2023 2024

'21-24 CAGR Global Wafer Fab Equipment Market is 1.9%

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Source: VLSI, Gartner; BCG Analysis
Top 5 players make up 70% of robotics market; long tail of
smaller players primarily based in Asia
Company Geography (HQ) Total Robotics Revenue ($M) Vacuum Revenue ($M) Atmospheric Revenue ($M)
$218.4 $206.4 $12.0
$190.6 $37.6 $153.0
$99.3 $42.2 $57.1
$91.4 $16.7 $74.7
$87.9 - $87.9
$71.2 $12.0 $59.2
$63.5 $15.6 $47.9
$34.8 $23.2 $11.6
$34.0 $34 -

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$23.5 $12.8 $10.7
$11.3 $9.4 $1.9
$7.4 $4.8 $2.6
$6.7 - $6.7
$5.0 $1.5 $3.5
$4.0 $4 -
$3.1 - $3.1
$2.0 - $2.0
$0.6 $0.6 -
Other $54.8 $19.8 $35.0
Total $1,009.5 $440.6 $568.9
Source: VLSI, BCG Analysis 9
Process control – Inspection &
Metrology

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$11B market has grown rapidly, but expecting lower growth
in future years of 3.0%
Global Inspection & Metrology Market ($B) 3.0%
'20 – '23 '23 – '26
15.0%
$12.1B CAGR CAGR
$11.0B Wafer
Inspection & 16.9% 2.5%
Defect Review
$6.7B $6.7B
$7.3B $6.2B $6.2B $6.3B
$5.8B Lithography
12.7% 3.4%

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Metrology
$3.9B
Thin Film
$2.8B $3.1B $2.9B $2.8B $2.9B $3.2B
Metrology
16.6% 3.7%
$2.0B
$1.1B $1.7B $1.9B $1.8B $1.7B $1.8B $2.0B Other Process
$0.3B $0.2B $0.2B $0.2B $0.2B $0.2B $0.2B Control
-9.6% 3.6%
2020 2021 2022 2023 2024 2025 2026

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Source: Gartner, BCG Analysis
BCG Semiconductor Credentials

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BCG has deep experience across the semiconductor value chain

Semiconductor supply chain BCG client experience in last 5 years

EDA
Design 3 of the top 5 EDA and
Core IP companies
Fabless IDM
8 of the top 16 design
Core IP companies (IDMs and
fabless)

4 of the top 5

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Front–end Manufacturing
equipment foundries
Foundry
3 of the top 10 wafer
Materials IDM fabrication equipment
companies
OSAT
Back–end 10+ clients in Assembly and Testing/Packaging
equipment
10+ clients in Materials

Source: BCG analysis 13

BCG is at the at forefront of semiconductor thought
leadership informing policy and industry strategy
COLLABORATED ON REPORTS HIGHLIGHTING DEVELOPMENTS IN THE SEMICONDUCTOR SUPPLY CHAIN

March 2020 September 2020 April 2021

Clearly spells out industry key
technical and economic factors driving
industry within US and beyond

Has involved broad set of stakeholders

in private and public sector

Extensive coverage by US and global

media (including major media outlets
Risks from Global manufacturing Risks to and resilience

Copyright © 2023 by Boston Consulting Group. All rights reserved.

in Germany, France, Spain, etc.)
US-China decoupling costs and incentives of global supply chain
Used as fact base for ongoing US
November 2021 November 2022 December 2022 policy discussions on US semiconductor
capacity needs (e.g., "minimum viable
capacity" vs. "self-sufficiency")

Widely referenced by policy ecosystem

and gov't officials (e.g., referenced 22
times in recent US White House report
on US supply chain resilience)

Winning in advanced US R&D infrastructure Intro to National Semiconductor 14

logic technology and the CHIPS Act Economic Roadmap (NSER)
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