Continuing from Part 1, which was written in 2022, some information has become outdated or changed with the development of the semiconductor industry. Therefore, updates are necessary, including etching equipment, lithography equipment, PVD/CVD equipment, CMP equipment, implant equipment, and cleaning equipment. Testing and packaging equipment are not included.
Etching Equipment:
Referring to some industry research reports available online, for example, the global semiconductor equipment market in 2024, according to the SEMI report titled “Global Semiconductor Equipment Market Report,” the total sales of global semiconductor equipment in 2024 is projected to be $117.1 billion, with etching equipment accounting for approximately 22% of the total semiconductor equipment market, second only to lithography equipment at 24%.
Next, let’s take a look at the market share of etching equipment manufacturers (mainly focusing on dry etching) in the global market for 2024: First is Lam, or Lam Research, with a market share of 52%; second is TEL, or Tokyo Electron, with a market share of 20%; third is AMAT, or Applied Materials, with a market share of 19%; fourth is Hitachi, with a market share of 4.8%; fifth is AMEC, or Advanced Micro-Fabrication Equipment, with a market share of less than 5%; and sixth are others, such as Oxford Instruments and Huachuang, with a market share of less than 5%. We can clearly see that the top three foreign manufacturers occupy over 90% of the global market share, essentially creating a winner-takes-all scenario in the global market.
However, there is no need to panic; let’s shift our focus to the domestic market. The market for dry etching equipment in China is projected to be about $6.3 billion in 2024, with international giants LAM, TEL, and AMAT holding market shares in China of approximately 25%-30%, 15%-20%, and 10%, respectively. Now, looking at domestic manufacturers, Zhongwei, North Huachuang, and others (such as Xinyuan and TuoJing Technology) hold market shares of 25%, 15%, and 10%, respectively.
Comparing the global market and the domestic market, we can see that while the three international giants still hold an absolute advantage in the global market, focusing on the domestic market reveals that domestic equipment manufacturers are steadily progressing, proving through actual market share that our domestic equipment is also improving. In the field of etching equipment, domestic etching equipment accounts for nearly 50%. However, we should not become complacent, as the data can be quite beautiful; 50% is indeed much better than having nothing before. But we must understand the implications behind the data. There are etching equipment used for high-precision processes and those used for relatively less precise processes. In our 50% market share, most of it consists of equipment for mature processes, while the etching equipment required for advanced processes is still dominated by the three giants. We must conquer the advanced processes.
Global market share for advanced processes (5nm process and below): Lam Research ~40%-46.7%, Tokyo Electron ~26.6%, Applied Materials ~16.7%, Zhongwei ~1.4%, North Huachuang ~0.9%.
It can be estimated that as the dimensions continue to shrink, competition for more advanced processes such as 3nm and 2nm will become even more intense.
For Chinese semiconductor equipment manufacturers, the only way out is to proceed steadily, taking each step carefully, without seeking shortcuts. We must continue to iterate in the mature process field and maintain our established market share; this is fundamental. In the field of more advanced processes, we should focus on R&D, respecting and protecting our researchers rather than prioritizing the market over R&D. Of course, equipment R&D is not something that can be done in isolation; it requires the entire industry chain to work together, including fabs, spare parts suppliers, chemical suppliers, material suppliers, software suppliers, and domestic equipment manufacturers to conduct DOE, trial and error, iteration, and learning.
At the same time, we must have a strong awareness of intellectual property, as ultimately our equipment will face the global market, and intellectual property is our protective shield.
Given time, we will definitely catch up with and even surpass the international giants.
