Europe Semiconductor Manufacturing Equipment Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

Europe Semiconductor Manufacturing Equipment Market Size

• The Europe semiconductor manufacturing equipment market size was valued at USD 23.89 billion in 2024 and is expected to reach USD 48.31 billion by 2032, at a CAGR of 9.20% during the forecast period
• The market growth is largely fueled by increasing demand for advanced microelectronics, rising investments in chip fabrication plants (fabs), and growing regional semiconductor autonomy initiatives. These factors are enabling faster deployment of cutting-edge logic and memory chips, supporting Europe's ambition to strengthen its semiconductor value chain
• Furthermore, the European Union’s Chips Act, which includes over €43 billion in public and private investments, is accelerating the development of semiconductor manufacturing capabilities across the region. This is driving demand for advanced photolithography, deposition, etching, and inspection tools required for next-generation chip production

Europe Semiconductor Manufacturing Equipment Market Analysis

• Semiconductor manufacturing equipment is experiencing heightened demand across Europe, driven by increased investments in advanced fabrication technologies, growing automation in chip production, and supportive regulatory initiatives such as the European Chips Act
• Technological transitions toward EUV lithography, automation, and advanced front-end/back-end equipment are fueling growth. European countries are bolstering domestic semiconductor capacities to reduce supply chain dependency
• Germany dominated the Europe semiconductor manufacturing equipment market, accounting for 33.6% market share in 2024, leveraging its strong industrial base, skilled workforce, and high penetration of technology-led fabs
• France is expected to be the fastest growing region in the Europe semiconductor manufacturing equipment market with the fastest CAGR of 8.3% from 2025 to 2032, supported by expanding government-backed R&D initiatives, front-end capacity development, and rising demand in the semiconductor testing and packaging sectors
• The Front End Equipment segment dominated the Europe semiconductor manufacturing equipment market with the largest revenue share of 62.3% in 2024, owing to its essential role in wafer fabrication processes such as lithography, etching, and deposition

Report Scope and Europe Semiconductor Manufacturing Equipment Market Segmentation 

Europe Semiconductor Manufacturing Equipment Market Trends

Growing Technological Advancements and Increasing R&D Investments

• A key trend driving the Europe semiconductor manufacturing equipment market is the increased focus on R&D and innovation aimed at enhancing chip fabrication processes and scaling next-generation semiconductor technologies
• Leading companies across Europe, especially in countries such as Germany, the Netherlands, and France, are investing in EUV (Extreme Ultraviolet) lithography, advanced etching systems, and metrology solutions to support the growing demand for high-performance chips used in AI, automotive, and industrial automation
• The EU Chips Act, launched in 2022, has accelerated the establishment of research hubs and collaborative innovation programs between universities, public institutions, and semiconductor companies. These efforts aim to strengthen Europe's semiconductor independence and boost domestic equipment manufacturing
• There is a rising demand for 3D packaging and heterogeneous integration technologies, pushing equipment manufacturers to develop tools for wafer bonding, through-silicon via (TSV) creation, and chiplet assembly
• Key players such as ASML, SÜSS MicroTec SE, and EV Group are expanding their production and R&D capabilities within Europe to meet the increasing demand for front-end and back-end equipment compatible with sub-7nm and advanced node processes
• Emerging fields such as quantum computing and neuromorphic chips are also driving early-stage investment in specialized fabrication equipment, including cryogenic systems and advanced deposition technologies
• Overall, Europe’s strong engineering base, government support, and push for high-tech sovereignty position the region as a strategic hub for semiconductor equipment innovation and manufacturing growth through 2032

Europe Semiconductor Manufacturing Equipment Market Dynamics

Driver

Growing Need Due to Rising Chip Demand and Advancements in Semiconductor Technology

• The increasing demand for advanced semiconductor components across Europe—driven by rising consumption of consumer electronics, automotive electronics, and industrial automation systems—is significantly propelling growth in the Semiconductor Manufacturing Equipment Market. Countries such as Germany, France, and the U.K. are expanding domestic chip production capabilities through public and private sector collaboration
• For instance, in April 2024, the European Union announced a strategic EUR 43 billion investment under the European Chips Act to bolster semiconductor manufacturing within the region. This initiative aims to reduce Europe’s reliance on foreign chip suppliers by funding R&D, expanding existing fabs, and incentivizing equipment manufacturers
• Growing interest in next-generation chip architectures such as 5G, AI, quantum computing, and electric vehicle technologies is driving demand for advanced lithography systems, deposition tools, and etching equipment—prompting a shift toward customized and high-precision semiconductor manufacturing solutions
• The European Commission continues to support semiconductor innovation through streamlined regulatory frameworks, tax incentives, and fast-tracked approvals for technology infrastructure projects under Horizon Europe and Digital Europe Programs
• Collaborations among semiconductor equipment firms, academic institutions, and national R&D agencies are fostering a strong innovation ecosystem across Europe. These partnerships are vital for expanding pilot production lines, supporting workforce development, and scaling up sustainable and resilient semiconductor supply chains

Restraint/Challenge

Limited Fabrication Infrastructure and Variability in Regional Investment

• The high capital expenditure required for setting up and maintaining advanced semiconductor fabs—especially for EUV and sub-7nm process technologies—continues to be a major constraint in certain parts of Europe, particularly in Eastern and Southern regions where technology infrastructure is still developing
• Even with supportive government policies, equipment for next-generation chipmaking often involves complex integration and long lead times, making it less accessible to smaller or newer players entering the European market
• Furthermore, skilled labor shortages and limited specialized training programs pose challenges for localizing semiconductor equipment manufacturing and operation. Expertise in process engineering, cleanroom maintenance, and nano-fabrication remains concentrated in select Western European countries
• Another key hurdle is the fragmentation of national-level strategies and investment priorities across EU member states. Lack of standardized industrial policy and regulatory alignment can delay collaborative projects and slow regional semiconductor ecosystem development
• To overcome these barriers, Europe will require greater alignment between national strategies, improved access to funding for small and mid-size enterprises (SMEs), increased public-private partnerships, and the creation of pan-European semiconductor innovation hubs to ensure long-term competitiveness and scalability

Asia-Pacific Latex Mattress Market Scope

The market is segmented on the basis of equipment type, dimensions, product type, supply chain participant, fab facility equipment, and country.

• By Equipment Type

On the basis of equipment type, the Europe semiconductor manufacturing equipment market is segmented into front end equipment and back end equipment. The front end equipment segment dominated the market with the largest revenue share of 62.3% in 2024, owing to its essential role in wafer fabrication processes such as lithography, etching, and deposition.

The back end equipment segment is projected to grow at the fastest CAGR of 8.7% from 2025 to 2032, driven by rising demand for advanced packaging and testing solutions amid the miniaturization of semiconductor devices.

• By Dimensions

On the basis of dimensions, the Europe semiconductor manufacturing equipment market is segmented into 2D, 2.5D, and 3D. The 2D segment accounted for the highest share of 51.4% in 2024, due to its maturity and widespread use in traditional chip manufacturing.

The 3D segment is expected to grow at the fastest CAGR of 10.2% from 2025 to 2032, fueled by increasing adoption of 3D ICs and stacked chip architectures for higher performance and reduced footprint.

• By Product Type

On the basis of product type, the Europe semiconductor manufacturing equipment market is segmented into Memory, MEMS, Foundry, Analog, MPU, Logic, Discrete, and Others. The Memory segment held the largest market share of 28.6% in 2024, driven by strong demand for DRAM and NAND flash used in consumer electronics and data centers.

The Foundry segment is anticipated to register the fastest CAGR of 9.5% during 2025–2032, propelled by the expansion of fabless companies and increased outsourcing of chip production to third-party manufacturers.

• By Supply Chain Participant

On the basis of supply chain participant, the Europe semiconductor manufacturing equipment market is segmented into foundry, outsourced semiconductor assembly and test (OSAT) companies, and integrated device manufacturer (IDM) firms. The IDM Firms segment dominated with a market share of 47.8% in 2024, supported by vertically integrated operations allowing for greater control over production and innovation.

The OSAT Companies segment is expected to grow at the fastest CAGR of 9.8% from 2025 to 2032, driven by the surge in demand for advanced packaging and cost-effective assembly services.

• By Fab Facility Equipment

On the basis of fab facility equipment, the Europe semiconductor manufacturing equipment market is segmented into factory automation, gas control equipment, chemical control equipment, and others. The factory automation segment led with a revenue share of 44.1% in 2024, owing to its critical role in improving production efficiency, reducing downtime, and ensuring precision manufacturing.

The Chemical Control Equipment segment is projected to witness the highest CAGR of 9.4% during 2025–2032, fueled by the need for safe handling of ultra-pure chemicals used in semiconductor processing.

Europe Semiconductor Manufacturing Equipment Market Scope

• Europe dominated the global semiconductor manufacturing equipment market, accounting for a 30.3% revenue share in 2024, driven by robust investments in chip manufacturing, strong government support through the European Chips Act, and the presence of globally recognized equipment manufacturers and research institutes
• The region’s semiconductor sector is bolstered by strong regulatory frameworks, a skilled labor force, and a growing emphasis on reshoring chip fabrication capabilities to reduce dependency on imports. Government-backed initiatives are promoting domestic fabrication and supply chain integration across the continent
• Increased funding for research and innovation, along with expanding cleanroom infrastructure and automation upgrades, is fostering rapid adoption of both front-end and back-end semiconductor manufacturing equipment

Germany Europe Semiconductor Manufacturing Equipment Market Insight

The Germany global semiconductor manufacturing equipment market accounted for the largest market share in Europe at 33.6% in 2024, supported by its world-class engineering capabilities, industrial automation expertise, and strong presence of IDM (Integrated Device Manufacturer) firms and advanced fab facilities. German semiconductor manufacturers are investing in front-end equipment and factory automation systems to support sub-7nm technology nodes, AI chipsets, and automotive-grade semiconductors. Strong academic-industry collaboration and access to government R&D funds are accelerating advancements in 3D and 2.5D packaging, positioning Germany as a regional innovation leader in semiconductor equipment deployment.

U.K. Europe Semiconductor Manufacturing Equipment Market Insight

The U.K. global semiconductor manufacturing equipment market held a 22.6% share of the Europe market in 2024, with strong growth expected due to its expanding fabless ecosystem and rising demand for MEMS, logic, and analog chip equipment. Government investments in quantum computing, defense technology, and electric vehicle (EV) infrastructure are driving the need for advanced back-end processing tools and OSAT (Outsourced Semiconductor Assembly and Test) capabilities. The U.K. is also promoting semiconductor manufacturing through public-private partnerships and increasing support for chemical control systems and factory automation within cleanrooms.

France Europe Semiconductor Manufacturing Equipment Market Insight

The France global semiconductor manufacturing equipment market is to be fastest growing with a CAGR of 8.3% to the Europe market in 2024, backed by state-funded initiatives such as the "France 2030" plan, which focuses on achieving semiconductor sovereignty and expanding local fabrication capacity. France is particularly investing in memory and analog chip production, leading to high demand for gas control equipment, etching, and deposition tools required in advanced fabs.  The country is also a key participant in collaborative EU efforts to scale 3D packaging technologies and develop sustainable semiconductor processes with reduced environmental impact.

Europe Semiconductor Manufacturing Equipment Market Share

The Europe semiconductor manufacturing equipment industry is primarily led by well-established companies, including:

• ASML (Netherlands)
• KLA Corporation (U.S.)
• Plasma-Therm (U.S.)
• LAM RESEARCH CORPORATION (U.S.)
• Veeco Instruments Inc. (U.S.)
• EV Group (Austria)
• Tokyo Electron Limited (Japan)
• Canon Machinery Inc. (Japan)
• Nordson Corporation (U.S.)
• Hitachi High-Tech Corporation (Japan)
• Advanced Dicing Technologies (Israel)
• Evatec AG (Switzerland)
• NOIVION (Germany)
• Modutek.com (U.S.)
• QP Technologies (U.S.)
• Applied Materials, Inc. (U.S.)
• SCREEN Holdings Co., Ltd. (Japan)
• Teradyne Inc. (U.S.)
• Onto Innovation (U.S.)
• ADVANTEST CORPORATION (Japan)
• TOKYO SEIMITSU CO., LTD. (Japan)
• SÜSS MicroTec SE (Germany)
• ASMPT (Singapore)
• FormFactor (U.S.)
• UNITES Systems a.s. (Czech Republic)
• Gigaphoton Inc. (Japan)
• Palomar Technologies (U.S.)

Latest Developments in Europe Semiconductor Manufacturing Equipment market

• In March 2025, leading semiconductor firms across Europe, including ASML and Infineon Technologies, called for a “EU Chips Act 2.0”, urging the European Commission to increase funding for semiconductor manufacturing and R&D to compete with U.S. and Asian markets. Industry leaders emphasized the need for streamlined permitting processes and long-term incentives to sustain chip production growth
•  In June 2025, ASML unveiled advancements in High-NA EUV lithography tools, enabling sub-2nm node processing for next-generation logic chips. This is expected to significantly enhance front-end semiconductor equipment capabilities across major fabs in Europe and beyond
• In July 2025, the U.S. and EU reached an agreement to exempt critical semiconductor manufacturing equipment from impending tariffs. Tools such as EUV scanners, metrology, and deposition equipment are no longer subject to the 15% duty, preserving cost-efficiency for European suppliers
•  In April 2024, global semiconductor equipment sales rebounded, reaching $117.1 billion, a 10% increase from the previous year. Europe remained a critical contributor, especially in front-end equipment, supported by national investments in cleanroom expansions and smart factory automation
• In May 2024, Intel and STMicroelectronics announced a partnership to co-develop a semiconductor fab in Italy, worth €4.2 billion, aimed at scaling back-end packaging and assembly capabilities. This move enhances Europe's position in OSAT (Outsourced Semiconductor Assembly and Test) and supports regional supply chain diversification
• In October 2023, Canon announced the release of the FPA-1200NZ2C nanoimprint semiconductor manufacturing equipment, designed for circuit pattern transfer, a critical process in semiconductor manufacturing. This new equipment, utilizing nanoimprint lithography (NIL) technology, complements Canon's existing photolithography systems, expanding its range of semiconductor manufacturing equipment. This expansion aims to cater to a diverse user base, addressing the requirements of both advanced and existing semiconductor devices
• In April 2023, Hitachi High-Tech Corporation announced its plans to build a new production facility in the Kasado Area of Kudamatsu City, Yamaguchi Prefecture. The facility aims to increase the production capacity of etching systems for its semiconductor manufacturing equipment business, with production slated to commence in FY2025. Through the implementation of digitalized and automated production lines, the new facility will double production capacity to meet the growing demand for semiconductor manufacturing equipment

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