MRO Magazine

Rising Demand for Electronic Devices to Drive the Global Semiconductor Deposition Market Through 2020, Says Technavio


June 28, 2016
By Business Wire News

LONDON

According to the latest market study released by Technavio, the global semiconductor deposition market is expected to grow at a CAGR of more than 16% during the forecast period.

This research report titled ‘Global Semiconductor Deposition Market 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes an up to date analysis and forecasts for various market segments and all geographical regions.

Request sample report: http://goo.gl/7JvMUc

The report categorizes the global semiconductor deposition market into three major end-user segments. They are:

  • Foundries
  • Memory manufacturers
  • IDMs

Foundries

The foundry segment is expected to grow at an impressive CAGR of more than 15% during the forecast period. The demand for electronic devices such as digital cameras, gaming consoles, notebooks, tablets, smartphones, network switches, and set-top boxes will continue to grow at a moderate rate despite the stagnant overall demand. This moderate demand will stem from developing APAC countries such as India, Bangladesh, Thailand, and Nepal. The high demand for electronic devices in these countries will prompt original equipment manufacturers to increase the demand for semiconductor devices such as logic, analog, memory, discrete, opto, and sensor devices during the forecast period. “In order to meet the rising demand, foundries need to upgrade equipment manufacturing units and ensure high throughput. This will drive the demand for deposition equipment during the forecast period,” says Navin Rajendra, a lead analyst at Technavio for embedded systems.

Memory manufacturers

The memory manufacturer segment will also grow at a CAGR of over 15% during the forecast period as semiconductor memory chips and technology play an invaluable role in the manufacturing of electronic devices. Memory has become a necessity for semiconductor devices due to the growing number of microcontroller processes in an electronic device. The adoption of 3D NAND technology by the major market vendors such as Samsung, Toshiba, SK-Hynix, and Sandisk will further boost the development and commercialization of 3D NAND devices. These vendors had plans to launch their products by the third quarter of 2015, but only Samsung managed to do so.

IDMs

The integrated device manufacturer (IDM) segment is expected to grow at a CAGR of over 13% during the forecast period. The high migration rate of semiconductor companies from the manufacturing to the fabless model will restrict the growth of IDMs during the forecast period. A new IDM requires a very high initial investment, and the upgrading cost for such facilities is also significant. Intel, which follows the IDM model, resorted to cost cutting in 2015. This will affect the company’s technological development, due to which the company may lose out to rivals such as TSMC and Samsung that are following the foundry model. The poor global economic condition is also a factor for decline in revenues for most IDMs, which are forced to cut costs. For instance, cost cuts have compelled Intel to delay the launch of its next-generation chip technology to 2017.

With cost cuts being a trend in the industry, most semiconductor device manufacturers are looking to cut down on production expenditure and focus more on enhancing the design and technology of chips. “However, the segment will grow marginally after 2017, due to consolidation among the major IDM players. These players will look to broaden their portfolio and distribute the capital expenditure over a wider revenue base. They will collaborate with equipment manufacturers or integrate vertically to develop in-house competence in critical production steps during the forecast period. Small players will either exit the industry, shift to the fabless model, or offer foundry services,” says Navin.

The top vendors highlighted by Technavio’s research analysts in this report are:

  • Applied Materials
  • ASM
  • Tokyo Electron
  • DuPont
  • Hitachi Kokusai Electric
  • Lam Research

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Do you need a report on a market in a specific geographical cluster or country but can’t find what you’re looking for? Don’t worry, Technavio also takes client requests. Please contact enquiry@technavio.com with your requirements and our analysts will be happy to create a customized report just for you.

About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

If you are interested in more information, please contact our media team at media@technavio.com.

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 208 123 1770
www.technavio.com