SEMICON West Show Daily 2024

This year again, Yole Group is fully part of SEMICON West 2024, from July 9 to 11 in San Francisco. This event brings the incredibly diverse global electronics supply chain together to address the semiconductor ecosystem’s greatest opportunities and challenges through programs highlighting.

At this occasion, Semiconductor Digest, the exclusive SEMICON West Show Daily provider, brings you news and views each day during the show, including Yole Group‘s analysts exclusive articles:

Wafer Fab Equipment: 2024 revenue holds steady, poised for 2025 surge

Yole Group announces a 2024 revenue (calendar year) to increase by 1.3% year-on-year, reaching $108.1 billion, despite a 12% quarter-to-quarter drop in Q1 2024.

The 1.3% year-to-year growth is driven by increased spending on advanced logic, NAND, and DRAM memory, alongside robust investment in legacy nodes. Additionally, service and support revenue is expected to grow by 6% YoY to $23.5 billion due to rising fab utilization rates globally. Over the long term, WFE revenue is anticipated to experience a CAGR of 4.3% from 2024 to 2029, reaching $133.7 billion by 2029.
Service and support revenue is also expected to grow, reaching $27.6 billion in 2029, with a CAGR of 3.3% over the same period. This moderate growth follows significant increases in 2021-2022, driven by high demand for semiconductor devices. WFE equipment vendors view 2024 as a transition year, with an expected increase in shipments in 2024 and 2025. Vendors are ramping up inventory to meet these needs and introducing new equipment solutions for upcoming process challenges. In Asia, especially in Greater China, there is ongoing IPO activity, while global M&A activity remains stagnant. In the 2nd half of 2024, WFE revenues are expected to rise…

Read the full article pages 12-14.

MEMS industry: poised for a resilient comeback?

Despite challenges, the MEMS industry is set for robust growth and technological advancements.

The Micro-Electro-Mechanical Systems (MEMS) industry, pivotal in the advancement of numerous technological applications, is experiencing a resurgence.
According to Yole Group’s Status of the MEMS Industry 2024 report, the sector seems to rebound, showing promising signs of growth despite facing significant challenges in recent years.
The MEMS market is projected to achieve substantial growth, with revenue expected to reach US$20 billion by 2029, up from US$14.6 billion in 2023.
The 5% expected growth following downturn highlights the industry’s resilience and its ability to adapt to shifting market dynamics. A combination of factors, including increasing demand for consumer electronics, automotive applications, and industrial automation, is driving this growth…

More to read on pages 6 to 10.

Power SiC WFE market: Yole Group forecasts the CapEx trend

With multiple investments announced by players, the Power SiC wafer front-end equipment market will peak at $5 billion in 2026. Besides the strong growth in the tool market, there are some concerns about future over-capacity and manufacturing challenges for technology transition, explain Yole Group’s analysts.

The power SiC market has surged since Tesla adopted SiC MOSFETs in its inverters in 2017. As of 2024, highvolume SiC based EVs, including models from Tesla, BYD, and Hyundai, are using SiC MOSFETs in traction inverters. Beyond automotive, sectors like industrial, energy, and rail are also driving growth. The SiC devices market is expected to reach nearly $10 billion by 2029, with SiC wafer and epiwafer shipments growing to over 3 million units. This booming market is attracting significant investment and capacity expansion across all levels, from devices to wafers. Leading players are expanding facilities, boosting equipment orders. The dynamics and forecast of the SiC manufacturing tool market are detailed in Yole Group’s new Power SiC – Manufacturing report. It highlights the need for dedicated WFE tools for processing power SiC devices, focusing on critical steps like epitaxy tools, ion implantation, wafer thinning, dry etching, annealing, oxidation, and inspection and metrology (M&I)…

Read the full article on pages 10 to 12.

CMOS Image Sensor industry: a growing market with evolving technologies

Technological advancements and market dynamics propel the CIS industry forward.

The CMOS image sensor (CIS) industry is experiencing a transformative period, with a projected growth rate of 4.7% from 2023 to this growth trajectory is reflected in the anticipated rise in CIS shipments, from 6.8 billion units in 2023 to 8.6 billion units by the market dynamics present a mixed picture, with some segments facing declines while others are thriving.
Smartphone sales, traditionally a significant driver of CIS demand, are experiencing a downturn in long-term sales, replacement rate being slowed down due to the recent inflationary context. Similarly, productivity imaging for laptops and tablets is also on a decline, following the end of stay-at-home policies. Conversely, the automotive sector is a bright spot, benefiting from stringent safety regulations and increasing automation demands.
Automotive cameras are increasingly critical for advanced driver-assistance systems (ADAS) and autonomous driving technologies. The security sector saw a stagnation in CIS revenues in 2022,but growth resumed in 2023 as the demand for enhanced security applications across various domains increased. In the industrial sector, factory automation and new machine vision applications in agriculture and traffic monitoring had been driving further CIS growth, even though growth will be more moderate for the next years. These industrial applications still require high-performance sensors, contributing to the sector’s robust demand.

More to read pages 6 to 10 !