Industry Overview 

Semiconductor wafer polishing and grinding equipment market is anticipated to grow at a CAGR of 10.2% during the forecast period (2025-2035). Pivotal factors such as rising industrial sectors for consumer electronics, telecom, and auto, and increasing production of more compact stronger, and less energy-consuming semiconductors demand ultra-thin and faultless wafers. Further, the expansion and deployment of 5G communications and expansion and proliferation of the Internet of Things (IoT) with greater performing semiconductors and emerging advanced package structures such as 3D-ICs, and system-in-package SiP, among others also contribute to industry growth. 

Market Dynamics

Growing Adoption of Advanced CMP Equipment

One of the trends in the market for semiconductor wafer polishing and grinding equipment is increased demand for advanced chemical mechanical planarization (CMP) equipment. The complexity of the semiconductor device increases, and manufacturers are looking for highly precise and efficient polishing solutions to achieve the required uniformity of the wafer surface. CMP equipment is evolving to meet the stringent requirements of advanced node technologies, thereby enabling the production of smaller, faster, and more energy-efficient chips. In addition, growth in the adoption of 3D NAND and FinFET architecture technologies has fuelled the necessity of developing a range of more specific CMPs suited to meet such complex designs. Companies continue investing heavily in R&D programs, focusing on optimizing equipment performance and lowering defect rates with high production yield improvements. It's a function of the necessity of pushing more performing chips into applications, such as AI, 5G, or autonomous vehicle applications.

Increasing Automation and Smart Manufacturing

The semiconductor industry had to deal with high production volumes and stricter process control, automation has been the efficiency and consistency enabler in this regard. The modern polishing and grinding tool is advanced with such features as real-time monitoring, predictive maintenance, and machine learning algorithms to enhance productivity. These developments enable the manufacturer to avoid downtime, cut operational costs, and increase wafer quality. Smart manufacturing is, in fact, a part of the larger Industry 4.0 movement, with interconnected systems and data analytics as its core constituents. This phenomenon is especially critical in high-volume production environments wherein even minor process optimizations can lead to significant cost savings and performance improvement.

Market Segmentation

• Based on the type, the market is segmented into semiconductor wafer polishing equipment and semiconductor wafer grinding equipment.
• Based on the end-user, the market is segmented into foundries, memory manufacturers, integrated device manufacturers (IDMs), and others (testing and packaging service providers).

Semiconductor Wafer Polishing Equipment Segment to Lead the Market with the Largest Share

There is an increase in the demand for electronic devices, and customers look for performance electronic devices, precise wafer processing has been very crucial in this. Polishing semiconductor wafer processing equipment plays a critical role in wafers, in achieving a flat surface. Furthermore, the growing adoption of advanced materials and miniature-sized chips is driving the need for high-level polishing solutions. Companies are responding with innovations in equipment efficiency to meet the industry's demands.

Foundries: A Key Segment in Market Growth

The demand from foundries is rising sharply, and the growth in the semiconductor wafer polishing and grinding equipment market is mainly led by this. Foundries are manufacturing entities catering to the needs of several IC designers. Advanced nodes and technologies adopted by these foundries require precise and efficient wafer processing solutions. In particular, the demand for high-quality consumer electronics, automotive chips, and IoT devices is still growing at a higher rate. 

Regional Outlook 

The global semiconductor wafer polishing and grinding equipment market is further divided by geography, including Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), North America (the US and Canada), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), and the Rest of the World (the Middle East & Africa, and Latin America)

Growing Semiconductor Wafer and Substrate Manufacturing in North America

The North American semiconductor wafer polishing and grinding equipment market are experiencing significant growth, primarily owing to integrated device manufacturers. The manufacturers are in increasing amounts of investment in various advanced technologies to boost their production facilities and cater to the growing demand for high-performance semiconductors. This growth is a result of the high and rapid growth experienced in the automotive, consumer electronics, and telecommunication sectors. This sector mainly thrives on proper and efficient semiconductor production. For instance, Intel Corp. is continuously developing advanced polishing and grinding technologies, which the corporation uses in enhancing its wafer fabrication process. Such investment results in an efficient production level, thus answering the rising demand for changing technology standards. 

Asia-Pacific Region Dominates the Market with Major Share

Several factors are contributing to the Asia-Pacific semiconductor wafer polishing and grinding?equipment market. The need for advanced semiconductor manufacturing?processes is driven by the increasing demand for advanced consumer electronics & industrial devices. The growing?adoption of automation in wafer processing is also fueling the market growth. Governments across the region are also pouring money into semiconductor research and development. Technologies such as 5G and IoT are creating huge opportunities for semiconductor?manufacturers. The?demand for precision equipment is further driven by technological advancements and innovation in the region. 

Market Players Outlook

The major companies operating in the global semiconductor wafer polishing and grinding equipment market include Applied Materials, Inc., JTEKT CORP., Tokyo Seimitsu Co., Ltd., Okamoto Machine Tool Works, Ltd., DISCO Corp., Engis Corp., and Komatsu NTC Ltd., among others. Market players are leveraging partnerships, collaborations, mergers and acquisition strategies for business expansion and innovative product development to maintain their market positioning.

Recent Development

• In November 2024, NexGen Wafer Systems introduced SERENO, the company's new multi-chamber platform that it has specifically developed for Wet Etch and Clean applications. The SERENO offers high performance in combination with the highest level of flexibility with onboard chemical supply supporting multiple process chemicals with integrated mixing, blending, and comprehensive analytics for maximum adaptability across a wide range of applications.

The Report Covers

• Market value data analysis of 2024 and forecast to 2035.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global semiconductor wafer polishing and grinding equipment market. Based on the availability of data, information related to new products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.