Semiconductor Laser Equipment Market - Strategic Insights and Forecasts (2025-2030)

Semiconductor Laser Equipment Market Size:

The semiconductor laser equipment market is forecasted to rise at a 5.59% CAGR, reaching USD 5.135 billion by 2030 from USD 3.912 billion in 2025.

A semiconductor laser oscillates the light by passing current through a semiconductor. Electrical energy is transformed into light by a semiconductor laser. This is made possible by the use of a semiconductor material, whose electrical conductivity lies in the range between that of conductors and insulators. Semiconductor lasers are small in size, reliable, and durable when compared to other laser types.

The semiconductor laser has a broad range of applications, like laser cutting, welding, bonding, drilling, debonding, marking, patterning, measuring, and deposition. Additionally, semiconductor lasers can lower expenses connected with laser therapies and increase operation speed and edge quality. Their expansion in the future may be supported by characteristics like their small size, high output power, and simplicity of integration, among others.

Semiconductor Laser Equipment Market Drivers:

• The rising demand for semiconductor laser equipment will boost the market

In recent years, the use of semiconductor lasers in business, networking, and defense has grown significantly. To bring in a new era of laser warfare systems, the Defense Advanced Research Projects Agency (DARPA) submitted ideas for scalable, high-energy laser (HEL) technology in February 2022. Semiconductor Equipment and Materials International (SEMI) estimates that in 2021, South Korea will spend USD 24.98 billion on semiconductor equipment, Taiwan will spend USD 24.94 billion, and China will spend USD 29.62 billion. The Institute of Electrical and Electronics Engineers (IEEE) claims that the automotive industry's demand for semiconductors has been consistent due to advancements in cutting-edge technologies like vehicle-to-everything communication, advanced driver-assistance systems (ADAS), and power management in electric cars, which include navigation, dashboard cameras, smart keys, and an eagerly awaited image processor. The China Association of Automobile Manufacturers (CAAM) estimates that approximately 26.1 million cars were produced in China overall in 2021.

Additionally, in 2022, steady growth is anticipated for the vehicle industry, and the nation sold almost 2.6 million cars in September 2022. It is anticipated that as the automotive industry expands, demand for automotive-grade semiconductor chips will rise, spurring investments in semiconductor machinery like semiconductor lasers. The increased incidence of numerous chronic diseases around the world is another significant driver propelling market growth.

The World Health Organization predicts that between 2020 and 2030, the burden of chronic disease will rise globally by 57%. As laser therapies are a viable treatment option for many diseases, it is anticipated that demand for laser therapies will increase with the rise of chronic diseases. Due to the characteristics such as improved edge quality, faster operating speeds, and lower costs, laser therapy equipment is anticipated to experience growth over the course of the forecast period.

Semiconductor Laser Equipment Market Geographical Outlook:

• The Asia Pacific area is anticipated to boost the market over the forecast period.

The demand for semiconductors is predicted to rise significantly in the Asia-Pacific area over the course of the forecast period as a result of increased government efforts and spending, high production levels, and industrialization. Taiwan's Investment Commission of the Minister of Economic Affairs has approved Taiwan Semiconductor Manufacturing Co. Ltd's investment to build a chip plant in Japan. A technology essential to today's and tomorrow's cutting-edge digital devices and weaponry has been governed by the enormous Taiwan Semiconductor Manufacturing Company Ltd (TSMC) by controlling the fabrication of the most sophisticated semiconductors.

TSMC is estimated to produce more than 90% of the world's supply of these processors. The Japanese government said in November 2021 that it intended to set aside JPY 600 billion (USD 4.5 billion) from its annual 2021 supplementary budget to support the production of advanced semiconductors. This is generating a healthy market condition for the expansion of the industry in the Asia-Pacific region.

Semiconductor Laser Equipment Market Key Developments:

• September 2025: Coherent Corp. began sampling a new 400 mW continuous-wave (CW) laser at 1311 nm, designed for co-packaged optics (CPO) and silicon photonics, targeting next-gen AI/datacenter interconnects. 
• June 2025: IPG Photonics showcased its latest fiber-laser technologies, including the new LDD-1000-DS welding laser, at the 2025 Laser World of Photonics event, expanding applications in precision welding and semiconductor manufacturing.
• January 2025: Sumitomo Heavy Industries (SHI) completed the acquisition of Laser Systems & Solutions of Europe (LASSE), bolstering SHI’s laser-annealing equipment portfolio for semiconductor power-device and advanced manufacturing.

List of Top Semiconductor Laser Equipment Companies:

• Han’s Laser Technology Industry Group Co Ltd
• IPG Photonics
• Delphi Laser
• Coherent Inc
• Omtech Laser

Semiconductor Laser Equipment Market Scope:

Semiconductor Laser Equipment Market Segmentation:

• SEMICONDUCTOR LASER EQUIPMENT MARKET BY PROCESS
  • Laser Bonding and Debonding
  • Laser Annealing
  • Laser Wafer Dicing
  • Laser Wafer Marking
• SEMICONDUCTOR LASER EQUIPMENT MARKET BY TYPE
  • OLED
  • Fiber Optic Laser
  • Red Lasers
  • High Power Diode Lasers
  • Green Lasers
  • Other
• SEMICONDUCTOR LASER EQUIPMENT MARKET BY APPLICATION
  • Communication
  • Medical
  • Military and Defense
  • Industrial
  • Automobile
  • Other
• SEMICONDUCTOR LASER EQUIPMENT MARKET BY GEOGRAPHY
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Indonesia
    • Thailand
    • Others