Wafer Fab Equipment: A Booming Market Built on a Fragmenting Supply Chain

By Clara Grcevic, Market & Technology Analyst, Semiconductor Equipment YOLE GROUP

Wafer fab equipment revenue reached $129 billion in 2025 and is forecast to approach $220 billion by 2031, a 9% CAGR, according to Yole Group’s Status of the Wafer Fab Equipment Industry 2026 report. Growth comes despite uneven end-market demand, driven by higher equipment intensity in advanced logic, DRAM/HBM, NAND and advanced packaging.

The market looks very different depending on whether it is measured by vendor headquarters, shipment destination or manufacturing location. North America-headquartered vendors generated about 40% of revenue, while China, Taiwan and South Korea took the majority of shipments. The top five vendors, ASML, Applied Materials, Lam Research, Tokyo Electron and KLA, accounted for roughly 70% of revenue, and leadership remains concentrated by process segment.

China’s domestic capture rate reached 17% in 2025, up 11 percentage points since 2021, with localization strongest in thinning and CMP and weakest in lithography and metrology. Consolidation continues, but recent deals target specific capabilities, such as Applied’s stake in Besi, rather than broad scale.

Click here to read the full article in the SEMICON West Show Daily.

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