Dry Etching Equipment Market, Trends, Business Strategies 2025-2032

Dry Etching Equipment Market was valued at 11420 million in 2024 and is projected to reach US$ 18050 million by 2032, at a CAGR of 6.9% during the forecast period

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MARKET INSIGHTS

The global Dry Etching Equipment Market was valued at 11420 million in 2024 and is projected to reach US$ 18050 million by 2032, at a CAGR of 6.9% during the forecast period.

Dry etching is a semiconductor manufacturing process that removes material using reactive ionized gases, enabling precise pattern transfer on wafers. This technique is critical for advanced chip fabrication, especially in sub-10nm nodes, as it offers superior anisotropy and selectivity compared to wet etching. Key dry etching methods include Inductively Coupled Plasma (ICP), Capacitive Coupled Plasma (CCP), and Deep Reactive Ion Etching (DRIE), each serving specific applications in logic, memory, and MEMS production.

The market growth is driven by the semiconductor industry’s transition to smaller process nodes, where etching complexity increases exponentially. For instance, 7nm chip production requires 140 etching steps—nearly triple the 40 steps needed for 28nm nodes. Asia-Pacific dominates consumption with 76.07% market share (2024), fueled by massive foundry expansions in Taiwan, South Korea, and China. Leading players like Lam Research, Applied Materials, and Tokyo Electron collectively control over 92% of the global market, though Chinese domestic manufacturers like AMEC are gaining traction with localization initiatives.

MARKET DYNAMICS

Advanced packaging technologies such as chiplet architectures and 3D IC integration are opening new frontiers for dry etching applications. These packaging approaches require specialized through-silicon via (TSV) etching and wafer thinning processes that differ from conventional front-end etching requirements. As the semiconductor industry increasingly adopts heterogeneous integration strategies, specialized dry etching solutions for packaging applications could represent a $1.5 billion market opportunity by 2030.

AI-Driven Process Optimization Enhances Equipment Value

The integration of artificial intelligence and machine learning into dry etching systems presents significant opportunities for equipment differentiation. Advanced process control systems that can optimize etch parameters in real-time based on incoming wafer measurements can provide substantial improvements in yield and throughput. Several leading equipment manufacturers have already introduced AI-enhanced systems that demonstrate 10-15% improvements in process consistency, creating compelling upgrade opportunities for existing fabrication facilities.

Materials Innovation Expands Application Scope

The development of new semiconductor materials beyond silicon, including compound semiconductors and 2D materials, creates additional demand for specialized dry etching solutions. Each new material system presents unique etching challenges that require tailored plasma chemistries and chamber designs. As these materials move from research to production environments, they represent a growing market segment for equipment manufacturers with specialized capabilities.

List of Key Dry Etching Equipment Companies Profiled

Lam Research Corporation (U.S.)
Tokyo Electron Limited (TEL) (Japan)
Applied Materials, Inc. (U.S.)
Hitachi High-Technologies Corporation (Japan)
Oxford Instruments plc (U.K.)
ULVAC, Inc. (Japan)
SPTS Technologies (U.K.)
GigaLane Co., Ltd. (South Korea)
Plasma-Therm LLC (U.S.)
SAMCO Inc. (Japan)
Advanced Micro-Fabrication Equipment Inc. (AMEC) (China)
NAURA Technology Group Co., Ltd. (China)

Segment Analysis:

By Type

Inductively Coupled Plasma (ICP) Segment Leads Due to Superior Precision in Advanced Node Semiconductor Manufacturing

The market is segmented based on type into:

Inductively Coupled Plasma (ICP)
Capacitive Coupled Plasma (CCP)
Reactive Ion Etching (RIE)
Deep Reactive Ion Etching (DRIE)
Others

By Application

Logic and Memory Segment Dominates as Semiconductor Industry Scales Down to 7nm and Below

The market is segmented based on application into:

Logic and Memory
MEMS
Power Device
Others

By Technology Node

7nm-28nm Segment Shows Strong Demand Due to Increasing Complexity in Chip Manufacturing

The market is segmented based on technology node into:

<28nm
28-14nm
14-7nm
7-3nm
Below 3nm

By End User

Foundries Lead the Market as Semiconductor Manufacturing Complexities Increase

The market is segmented based on end user into:

Foundries
Integrated Device Manufacturers (IDMs)
Research Institutions
Others

Regional Analysis: Dry Etching Equipment Market

Asia-Pacific
The Asia-Pacific region dominates the global dry etching equipment market, accounting for 76.07% of sales revenue in 2019. This leadership stems from massive semiconductor fabrication investments across China, Taiwan, South Korea, and Japan. China alone has become the world’s largest semiconductor equipment market for four consecutive years, with aggressive expansion plans for 28nm-7nm fabs requiring 2.5x more etching steps than previous nodes. Local champions like AMEC and NAURA are gaining traction against global players by offering cost-competitive solutions for mature nodes, while governments actively subsidize domestic equipment development. However, geopolitical tensions and export controls create supply chain uncertainties that may impact regional growth trajectories.

North America
Holding 13% market share, North America remains a critical innovation hub despite production shifts to Asia. The U.S. hosts R&D centers for industry leaders like Lam Research and Applied Materials, who collectively control over 60% of global etching equipment IP. Recent CHIPS Act funding ($52.7 billion) aims to revitalize domestic semiconductor manufacturing, with Intel’s $20 billion Ohio fab project signalling renewed demand for advanced etching systems. The region specializes in cutting-edge applications—particularly for AI/ML chips—where precision etching at 5nm nodes and below commands premium pricing. Regulatory scrutiny on equipment exports to China presents both challenges and opportunities for market repositioning.

Europe
Europe’s market thrives on specialty semiconductor applications, with focus areas including automotive MEMS, power devices, and photonics requiring customized etching solutions. ASML’s EUV leadership indirectly boosts demand for compatible etching systems, particularly in Germany and the Netherlands where equipment suppliers cluster around major research institutions. While the region lags in volume production, EU initiatives like the Chips Act (€43 billion investment) aim to double Europe’s semiconductor market share by 2030. This could benefit equipment manufacturers specializing in heterogeneous integration and 3D IC packaging—processes demanding advanced DRIE (Deep Reactive Ion Etching) capabilities currently supplied primarily by SPTS Technologies and Plasma-Therm.

Middle East & Africa
The emerging MEA market shows potential through strategic partnerships, such as Saudi Arabia’s $6 billion investment in semiconductor materials production which may eventually drive local equipment demand. Israel’s strong fabless design ecosystem creates niche opportunities for MEMS etching systems, but limited local manufacturing infrastructure curtails broader adoption. Recent geopolitical developments, including the Abraham Accords, could facilitate technology transfers that stimulate regional equipment markets over the next decade—though current sales remain negligible at <1% of global totals.

South America
Brazil’s modest but growing aerospace and medical device industries generate steady demand for MEMS-focused etching equipment, primarily imported from U.S. and European suppliers. Argentina’s INVAP has demonstrated capability in specialty semiconductor applications, yet macroeconomic instability hinders capital-intensive equipment investments. The region shows potential as a testing ground for refurbished etching systems redeployed from Asian fabs, though lack of comprehensive semiconductor policies limits market development compared to other emerging economies.

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