The global semiconductor equipment industry is entering a period of intensive breakthroughs.

As the “mother machine” of the semiconductor industry chain, the direction of technological iteration in semiconductor equipment to a significant extent determines the trajectory of the chip industry. Starting in 2025, downstream sectors such as artificial intelligence, high-performance computing, and new-energy vehicles have experienced explosive growth, intensifying competition among countries in core equipment areas and ushering the global semiconductor equipment industry into a period of intensive breakthroughs.

Accelerated iteration of advanced process nodes and comprehensive acceleration of front-end manufacturing equipment innovation

SEMI’s Year-End Total Semiconductor Equipment Forecast Report projects that global sales of semiconductor manufacturing equipment will reach US$133 billion in 2025, representing a year-on-year increase of 13.7% and significantly surpassing the previous record of US$104.3 billion in 2024, thereby setting a new all-time high. Front-end manufacturing equipment spans the entire wafer fabrication process, encompassing critical tools such as lithography, etching, thin-film deposition, ion implantation, chemical mechanical polishing (CMP), cleaning, and photoresist coating and development; it is the segment with the highest technological barriers, the largest capital investment requirements, and the longest validation cycles. As process nodes advance to 2 nm and below, the primary drivers of equipment upgrades are higher precision, greater process uniformity, reduced damage, and increased throughput.

In the lithography equipment sector, a global landscape has emerged in which EUV and DUV technologies operate in parallel. The Dutch company ASML is currently the only manufacturer worldwide to have achieved mass production and supply of EUV lithography systems. Its next-generation High-NA EUV platform (the EXE series) features a 0.55 high-numerical-aperture optical system, delivering 8-nm resolution and significantly enhanced imaging contrast. According to ASML’s official roadmap, this technology is slated for large-scale volume production of advanced logic chips and high-density memory devices at 2 nm and below starting in 2025–2026, with the potential to reduce process steps, lower defect rates, and cut manufacturing costs. The EXE series comprises two core models—the TWINSCAN EXE:5000 and the TWINSCAN EXE:5200B—and has already secured orders from leading international foundries, with validation and installation proceeding according to plan. Meanwhile, ASML’s existing NXE-series EUV tools (with NA = 0.33) will continue to support volume production at the 7-nm to 3-nm nodes. Together, these two generations of EUV systems will provide long-term, parallel support for advanced-node manufacturing. Domestically, Shanghai Micro Electronics’ SSX600 series ArF dry lithography systems have achieved scale-up production and can meet the requirements of mature-node chip fabrication.

Etching equipment is the core tool for chip patterning, directly impacting structural precision and electrical performance. On the global stage, U.S. companies such as Applied Materials and Lam Research continue to advance R&D on high-end etching technologies—including atomic-layer etching and metal etching—to meet the critical process requirements of advanced-node interconnect layers and gate structures, with their products now in volume production on leading international advanced wafer fabs. Domestically, significant breakthroughs have been made in etching equipment: Northern Huacheng’s 14nm dielectric and conductive etchers have achieved large-scale mass production, with yield, stability, and repeatability meeting production standards and being widely deployed in mature-process lines at China’s major wafer foundries; meanwhile, etching equipment for advanced nodes remains in the internal technology-validation phase, with the overall technology gap continuing to narrow.

In thin-film deposition equipment, atomic layer deposition (ALD) and chemical vapor deposition (CVD) are critical technologies for advanced process nodes and 3D storage. Japan’s TEL and U.S.-based Applied Materials maintain a leading position in high-precision ALD systems, with deposition uniformity, step coverage, and defect control all reaching state-of-the-art levels. Domestically, equipment development has accelerated markedly: Northern Huacheng has established a comprehensive product portfolio of CVD systems that can fully meet the manufacturing requirements for 3D NAND flash memory, and these systems have already been delivered in volume to China’s leading storage-chip manufacturers, with continuous improvements in film-quality, production efficiency, and operational stability.

Ion implanters are essential equipment for power semiconductors and advanced logic chips, used to precisely control doping levels and electrical performance. Internationally, companies such as Applied Materials of the United States and Nissin of Japan continuously optimize implant uniformity, dose accuracy, and long-term reliability to meet the stringent requirements of advanced process nodes and automotive-grade chips. Domestically, China has achieved industrialization breakthroughs in semiconductor-specific ion implanters: Kaishitong, a subsidiary of Wanye Enterprise, has successfully scaled up production and delivered large volumes to customers of its low-energy, high-current ion implanter, which can support mass production at 12-inch wafer fabs and establish a stable supply capability in mature process technologies and the power semiconductor sector. Recently, China’s first tandem-type high-energy hydrogen ion implanter (POWER-750H), independently developed by the Institute of Atomic Energy under China National Nuclear Corporation, successfully produced its first beam, with key performance metrics reaching international standards. In addition, Huahai Qingke, Northern Huacheng, ShuoKe Zhongke Xin, and Aion Semiconductor have also successively launched multiple product models.

Front-end auxiliary equipment is experiencing diversified growth. HuaHai Qingke’s 12-inch CMP equipment has achieved large-scale deployment in mature processes at 28 nm and above, while its key 14-nm process is currently undergoing internal validation; Shengmei Shanghai’s high-end cleaning equipment effectively addresses particle and metal contamination in the cleaning of high aspect-ratio structures and has secured orders from leading domestic memory manufacturers; Xinyuan Micro’s spin-coating and developing equipment has been validated on 28-nm production lines at domestic wafer fabs, with the localization rate of core components steadily increasing, establishing the company as a major supplier for the front-end spin-coating and developing segment in China. Overall, the global front-end equipment market in 2026 will be characterized by two major trends: advanced-node competition centered on EUV, atomic-layer etching, and high-precision ALD; and domestic equipment leveraging mature processes as a breakthrough to shift from isolated point solutions toward a more systematic, integrated approach.

Surging Demand Driven by Advanced Packaging Fuels a Boom in Backend Packaging and Testing Equipment

In the back-end manufacturing stage, advanced packaging technologies such as chiplets, 2.5D/3D stacking, and hybrid bonding are rapidly gaining traction. These technologies significantly enhance chip system performance, reduce costs, and shorten development cycles without relying on the most advanced process nodes, making them the mainstream technology roadmap for AI chips, high-performance computing, and automotive domain-control chips. As a result, demand for packaging-and-testing equipment—including thinning, dicing, wire bonding, testing, and sorting—has surged.

In the area of wafer thinning and dicing equipment, Japan’s DISCO maintains a global leading position in ultra-thin wafer thinning and high-precision dicing, having launched damage-free processing systems tailored for advanced packaging that meet the stringent requirements of 3D stacking for ultra-thin wafers. Domestically, significant breakthroughs have been achieved: Huahai Qingke’s integrated thinning-and-polishing machine has entered the mass-production lines of domestic memory manufacturers, with key performance metrics—including thickness uniformity, surface roughness, and chipping rate—now on par with international standards. Laser invisible dicing complements traditional blade dicing, with each technology suited to specific applications: laser dicing for ultra-thin, large-diameter wafers, and blade dicing for thick wafers and power devices. High-end dicing machines from Japan’s DISCO, Guangli Technology, and DaZhu Laser now serve niche markets such as power semiconductors, optoelectronic devices, and advanced packaging.

Die-attach and wire-bonding equipment are the core tools for advanced packaging. Overseas companies continue to launch high-precision, high-density solutions that meet the demands of chiplet-based multi-chip integration. Domestically, Chinese firms have achieved large-scale substitution: Xinyichang’s high-end die-attach machines are now being shipped in volume, delivering industry-leading performance in high-precision die attachment, thermal stability, and multi-chip integration; meanwhile, Dazhong Optoelectronics’ wire-bonding equipment has been adopted by domestic packaging and testing firms for their chiplet production lines, satisfying the requirements for high-density interconnects and fine-pitch bonding, thereby breaking the monopoly held by overseas suppliers of high-end wire-bonding equipment.

Testing and sorting equipment represents the most significant area of breakthrough for domestically produced packaging-and-testing equipment. Changchuan Technology’s high-speed digital test systems meet the testing requirements for high-end digital chips and high-speed interface chips; Huafeng Test & Control’s automotive-grade analog test systems hold a leading position in the domestic market, providing comprehensive coverage for automotive applications such as on-board power supplies, power management chips, and sensors; and LianDong Technology has launched dedicated silicon carbide (SiC) test systems, filling the domestic gap in testing equipment for third-generation semiconductor power devices. Domestically produced sorting equipment now fully supports 12-inch wafers, with some models already being exported and officially integrated into global supply chains.

Currently, advanced packaging has become the primary driver of growth in back-end equipment. By 2026, the global packaging and testing equipment market is expected to continue expanding, with domestic equipment making breakthroughs from low-end to mid- and high-end segments and evolving from standalone machine supply to comprehensive line-level turnkey solutions. As a result, the completeness of the packaging and testing equipment ecosystem and its international competitiveness will continue to strengthen.

The global industrial landscape is undergoing profound adjustments, and a diversified ecosystem is accelerating its formation.

From 2025 to 2026, the global semiconductor equipment industry will enter a period of profound structural adjustment. U.S., Japanese, and Dutch firms, leveraging their long-term technological expertise, patent barriers, and ecosystem synergies, will continue to dominate the high-end equipment market for advanced process nodes. Meanwhile, Chinese equipment manufacturers are rapidly gaining ground in mature-process segments, with products covering key front-end manufacturing and back-end packaging-and-testing processes; their market share and revenue are steadily expanding, driving the global equipment industry toward a more multi-centered and diversified landscape.

From the perspective of the competitive landscape, leading overseas companies hold the majority share of the global equipment market and have established significant technological barriers in areas such as EUV lithography, advanced etching, and high-end ALD. Domestically, equipment firms represented by Northern Huacheng, HuaHai Qingke, Shengmei Shanghai, Xinyuan Micro, Wanye Enterprise, and Changchuan Technology have achieved tiered breakthroughs, expanding their offerings from single-equipment supply to process integration, turnkey line solutions, and supporting services. Some of their products have already entered international supply chains, resulting in a marked enhancement of their overall competitiveness.

From the perspective of regional industrial clusters, three major specialized semiconductor equipment clusters have emerged globally: the North American cluster maintains its leading position thanks to its advanced process R&D and high-end manufacturing capabilities; the European cluster, supported by companies such as ASML in the Netherlands and Zeiss in Germany, boasts strong advantages in high-end lithography systems and core components; and the Asia-Pacific cluster, with China as its central growth engine, is experiencing robust downstream demand, rapid expansion of wafer fabs, and strong localization momentum, making it the fastest-growing region in the global semiconductor equipment industry.

From the perspective of market demand structure, the global equipment market is driven by both advanced and mature process technologies. AI servers, high-performance computing, and high-end smartphones are boosting demand for advanced-process equipment, while automotive electronics, the Internet of Things, industrial control, and power semiconductors are supporting steady growth in mature-process equipment. The industry as a whole is shifting toward greater efficiency, precision, lower energy consumption, and greener operations, with intelligent operations and maintenance, high capacity utilization, and low-carbon manufacturing emerging as new competitive priorities.

The global semiconductor equipment industry is currently at a critical juncture marked by technological iteration and a reshaping of the industry landscape. Advanced manufacturing processes continue to push toward smaller feature sizes, with competition in high-end equipment concentrated on core segments such as lithography, etching, and thin-film deposition. Meanwhile, mature-node processes, supported by robust downstream demand, are maintaining steady expansion, creating opportunities for the localization of domestic equipment. Looking ahead, as technology advances and the industrial ecosystem matures, semiconductor equipment will further drive the digital economy to deeper levels and broader applications, providing robust equipment support for the high-quality development and intelligent transformation of the global technology sector.

Source: China Electronics News