Europe Semiconductor Manufacturing Equipment Market Size, Share, and COVID-19 Impact Analysis, By Type (Wafer Processing/Wafer Manufacturing, Assembly and Testing Equipment, Other), By Application (Fabrication Plant, Semiconductor Electronics Manufacturer, Testing Home), and Europe Semiconductor Manufacturing Equipment Market Insights, Industry Trends, Forecast to 2035

Europe Semiconductor Manufacturing Equipment Market Insights Forecasts to 2035

• The Europe Semiconductor Manufacturing Equipment Market Size Was Estimated at USD 23.05 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of Around 8.21% from 2025 to 2035
• The Europe Semiconductor Manufacturing Equipment Market Size is Expected to Reach USD 54.92 Billion by 2035

According to a research report published by Spherical Insights & Consulting, The Europe Semiconductor Manufacturing Equipment Market Size is Anticipated to Reach USD 54.92 Billion by 2035, Growing at a CAGR of 8.21% from 2025 to 2035. The rising demand for semiconductors in advanced automation, artificial intelligence, and IoT-based applications is anticipated to boost the semiconductor manufacturing equipment market

Market Overview

Semiconductor manufacturing equipment (SME) involves extremely specialized tools and machines that are used to fabricate integrated circuits (ICs) and microchips, which are indispensable for modern electronics, such as phones, AI hardware, etc. Major applications include circuit patterning, material deposition/removal, impurity implantation, and chip inspection/testing, all taking place in ultra-clean environments to facilitate the layering of intricate electronic functions onto silicon wafers.

The European Commission has approved an Austrian program worth USD 227 million to support AMS Osram to construct a cutting-edge wafer manufacturing plant at Premstatten; it will be in operation in February 2025.

Bosch and Infineon, among other firms, are pouring in advanced wafer processing equipment to the maximum extent possible so as to satisfy the increased demand for chips destined for electric vehicles and industrial automation. The European Union's "Digital Compass" strategy is set to double the EU's global semiconductor market share from the current 10% to 20% by 2030, which in turn will result in the European Commission pledging 43 billion Euros in public and private financing through the European Chips Act.

The automobile industry is moving to electric vehicles (EVs) and self-driving cars, which is a major source of demand for sophisticated semiconductor parts. Close cooperation between academia and industry, along with government R&D funds, are prominent factor that is fast-tracking the advancements in 3D and 2.5D packaging, making Germany the leader in the regional innovation of semiconductor equipment deployment.

Report Coverage

This research report categorizes the market for the Europe semiconductor manufacturing equipment market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Europe semiconductor manufacturing equipment market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Europe semiconductor manufacturing equipment market.

Driving Factors

The semiconductor manufacturing equipment market in Europe is driven by the enhanced funding for high-tech production methods, increasing robotics in semiconductor manufacturing, and positive legal measures such as the European Chips Act. The developments in the semiconductor industry, like Lithography shifts from DUV to EUV, automation, and sophisticated front-end/back-end machinery, are stimulating demand. The European Union, in April 2024, made a statement regarding the strategic investment of EUR 43 billion under the European Chips Act to enhance semiconductor manufacturing in the area, which is a part of its overall investment in the EU semiconductor sector.

Restraining Factors

The semiconductor manufacturing equipment market in Europe is restrained due to supply chain disruptions. The financial dependency on imports of basic materials like silicon wafers and rare earth metals has caused shortages that are slowing down the manufacturing process and restricting the production capacity. The global supply chain has affected the semiconductor production in countries like Germany and France leading to delays in the production processes.

Market Segmentation

The Europe semiconductor manufacturing equipment market share is categorised into type and application.

• The wafer processing/wafer manufacturing segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. 

The Europe semiconductor manufacturing equipment market is segmented by type into wafer processing/wafer manufacturing, assembly and testing equipment, other. Among these, the wafer processing/wafer manufacturing segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. The growth of the segment is driven by the rise of investments in wafer fabrication technology, especially for 7nm and 5nm chips, besides the major growth. Germany, being a semiconductor manufacturing center, is also a target for the expansion of wafer processing capacities by GlobalFoundries and Infineon companies.

• The fabrication plant segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period.  

Based on application, the Europe semiconductor manufacturing equipment market is segmented into fabrication plant, semiconductor electronics manufacturer, testing home. Among these, the fabrication plant segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period. The segmental growth is driven by the reliance on Asian foundries has raised concerns. Hence, the European countries have begun to fund local manufacturing as a means of meeting the increasing need for semiconductors. Besides, the firm Intel announced to build a semiconductor factory in Germany by the year 2023 at 17 billion Euros, which underlines the shift towards expanding regional foundries.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Europe semiconductor manufacturing equipment market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• ASML Holding N.V.
• EV Group
• SUSS MicroTec SE
• Evatec AG
• ASM International
• Nordson Corporation
• Infineon Technologies AG
• NXP Semiconductors N.V.
• STMicroelectronics N.V.
• Intel Corporation
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at the Europe, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Europe semiconductor manufacturing equipment market based on the below-mentioned segments

Europe Semiconductor Manufacturing Equipment Market, By Type

• Wafer Processing/Wafer Manufacturing
• Assembly and Testing Equipment
• Other

Europe Semiconductor Manufacturing Equipment Market, By Application

• Fabrication Plant
• Semiconductor Electronics Manufacturer
• Testing Home