Epitaxy Equipment Market Size:
The Global Epitaxy Equipment Market is projected to grow at a CAGR of 14.45% through the forecast period of 2022-2030.
A family of instruments called epitaxy equipment is used to grow or deposit thin films on a substrate. Epitaxy is a combination of the Greek words for "arrangement" and "on". Epitaxial film growth is crucial for creating semiconductor devices, including solar cells, LEDs, and integrated circuits (ICs). In epitaxy, a material layer known as the seed layer is applied to a substrate. Chemical vapor deposition is the most popular method for doing epitaxy, which generates a non-volatile solid layer on a substrate from reactions of appropriate chemical vapors.
The market's expansion can be attributed to the ongoing development of new LED products and the expansion of those products' applications in the power sector. Sumitomo Electric Device Innovations, Inc. received an AIX G5+ tool from AIXTRON SE to increase the capacity of GaN-on-SiC radio frequency (RF) devices for supporting the development of rapidly rising 5G mobile networks. This tool has an 8x6-inch wafer configuration. Power GaN, power SiC, and VCSELs are a few examples of More than Moore (MtM) technologies that are making significant inroads into the consumer and automotive sectors. Other applications, such as microLED, also have a lot of potential and are poised to undergo mass production at any time. The crucial choke points are epitaxy and the machinery used to produce these devices. They are essential in the business proposition proposed by various stakeholders later in the supply chain since they make their mere existence possible and define their performance.
Alternative non-silicon-based substrates, including GaAs, GaN, SiC, and InP, are expanding and opening up new industry opportunities. Additionally, SiC substrates and other wide-bandgap materials are being used more frequently in the power electronics industry.
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Global Epitaxy Equipment Market Overview & Scope:
The Global Epitaxy Equipment Market is segmented by:
- Technology: The Chemical Vapour Deposition Epitaxy plays an integral role in the fabrication and packaging of advanced semiconductor devices, thus holding a significant share during the forecast period.
- Substrate Type: Silicon carbide substrate-type devices are witnessing strong growth driven by the expanding market for electric vehicles. The global auto industry is investing significantly in chips made from silicon carbide.
- Application: The semiconductor segment will hold a significant share due to its rapidly expanding market.
- End-User Industry: The consumer electronics segment is booming because of the increasing number of handheld devices and the growing internet connectivity.
- Region: By geography, the global epitaxy equipment market is segmented into the Americas, Europe, the Middle East and Africa, and Asia Pacific.
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Top Trend Shaping the Global Epitaxy Equipment Market:
The advancement in AI technology
- There is a growing demand for larger parameter models for AI training and inferencing needed computation and memory resources with high bandwidth, low latency, low energy consumption, and high reliability. The supply of high-quality and large-volume quantum dot epitaxial wafers for laser sources and semiconductor optical amplifiers (SOAs) has been limited and requires expansion.
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Global Epitaxy Equipment Market: Growth Drivers vs. Challenges
Drivers:
- Disruptive LED devices will continue to be introduced, acting as a driver: The visible LED market is expanding its product line to include specialized UV and IR LEDs built on GaAs substrates. LED makers are also creating new types of LEDs, such as mini LEDs and micro LEDs, to keep adding value to consumer displays. For instance, Apple has begun promoting its more expensive wristwatch model. The rise in the usage of micro LEDs in smartphone goods will impact the market for epi-ready wafers. Furthermore, researchers from the University of Sheffield created a brand-new technique for depositing high-brightness green InGaN microLED arrays.
- The crystal epitaxy equipment market is showing growth during the forecast period: Its market is primarily driven by the ongoing introduction of new LED technology, which is being utilized more often in the power sector. Alternative non-silicon-based substrate development, such as those of GaN, GaAs, InP, and SiC, is anticipated to expand lucrative business potential. To minimize power consumption, which is crucial for renewable energy, power supply applications, motor drives, and the electrification of transportation, materials with broad bandgaps, such as SiC, are also being used increasingly in power electronics.
Challenges:
- Technological challenges: The technology for the epitaxy equipment is complicated and needs sophisticated operation.
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Global Epitaxy Equipment Market Regional Analysis:
- Asia-Pacific: Advanced logic and foundries, several new projects in China, and, to some extent, an increase in demand for memory chips are all contributing to the equipment market's revival. Some of the largest epitaxial wafer manufacturers in the world are based in this area, and they are continuing to grow.
For instance, EpiWorld, a well-known Chinese company, wants to increase its manufacturing capacity. The business has completed production lines for 6-inch and 4-inch SiC epitaxial wafers with 600V, 1,200V, and 1,700V power ratings. India and Israel have been working together to support the growth of the electronics manufacturing sector. During the most recent India-Israel Forum, a USD 912 million capex subsidy for introducing new equipment was suggested. Such actions are anticipated to support market expansion in the area.
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Global Epitaxy Equipment Market: Competitive Landscape
The market is fragmented, with many notable players, including II-VI Incorporated, Applied Materials Inc, ASM International, CVD Equipment Corporation, NuFlare Technology Inc (Toshiba Electronics Devices and Storage Corporation), Tokyo Electron Limited, Infineon Technologies AG, Masimo Semiconductor, Epiluvac AB, and Riber, among others:
A few strategic developments related to the market:
- Expansion: In January 2025, Quintessent Inc., a pioneer in quantum dot laser technology and heterogeneous silicon photonics, and IQE plc partnered to establish the world’s first large-scale quantum dot laser and semiconductor optical amplifier (SOA) epitaxial wafer supply chain.
- New Product: In September 2024, the new system extended ASM’s portfolio of industry benchmark single-wafer silicon carbide epitaxy systems, the 6” PE1O6 and 8” PE1O8 systems. This had a higher throughput, lower cost of ownership, dual chamber, single wafer, 6” and 8” compatibility, and a silicon carbide epitaxy system.
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Global Epitaxy Equipment Market Scope:
| Report Metric |
Details |
| Study Period |
2021 to 2031 |
| Historical Data |
2021 to 2024 |
| Base Year |
2025 |
| Forecast Period |
2026 – 2031 |
| Report Metric |
Details |
| Growth Rate |
CAGR of 14.45% |
| Study Period |
2020 to 2030 |
| Historical Data |
2020 to 2023 |
| Base Year |
2024 |
| Forecast Period |
2025 – 2030 |
| Forecast Unit (Value) |
USD Billion |
| Segmentation |
- Technology
- Substrate Type
- Application
- End-User Industry
- Geography
|
| Geographical Segmentation |
Americas, Europe, Middle East, and Africa, Asia Pacific |
| List of Major Companies in the Epitaxy Equipment Market |
|
| Customization Scope |
Free report customization with purchase |
Global Epitaxy Equipment Market Segmentation:
- By Technology
- Molecular Beam Epitaxy
- Atomic Layer Epitaxy
- Chemical Vapour Deposition Epitaxy
- Others
- By Substrate Type
- Silicon
- Silicon Carbide (SiC)
- Gallium Nitride
- Others
- By Application
- Semiconductors
- Photonics
- Others
- By End-User Industry
- Semiconductor
- Consumer Electronics
- Automotive Industry
- Telecommunications
- Others
- By Region
- Americas
- Europe, Middle East, and Africa
- Germany
- Netherlands
- Others
- Asia Pacific
- China
- Japan
- Taiwan
- South Korea
- Others
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