Deposition equipment

Why the concentration exists

Unlike lithography systems that are largely node-specific, deposition tools can serve multiple process nodes with recipe modifications. A fab designed for one node can partially reallocate deposition capacity to adjacent nodes as demand shifts. This flexibility makes deposition equipment a foundational investment for semiconductor manufacturing, as every advanced fab requires these tools regardless of the specific technology being produced. The ability to reconfigure tools for different applications provides manufacturers with operational flexibility.[1]

The technology encompasses multiple distinct methods for different applications. Electrospark deposition is a micro-welding process capable of depositing metal alloy or ceramic coatings onto electrically conductive materials, producing metallurgically bonded nanostructural coatings. Before 1998, practically all chips used aluminum for metal interconnection layers, whereas copper is mostly used nowadays, requiring different deposition approaches. Each deposition method offers specific advantages for particular materials and film requirements.[13][10]

What the evidence shows

Who supplies it

Each major supplier holds strong positions in specific deposition technologies and applications. Lam Research's Vector Strata tool dominates the market for the very thick ONON films deposited for 3D NAND memory. Tokyo Electron's EXIM PVD system deposits multilayer films for Spin Transfer Torque Random Access Memory, while its LEXIA-EX sputter deposition system achieves 100 wafers per hour throughput with a footprint 40% smaller than its predecessor. Specialization in particular film types and applications allows suppliers to maintain strong market positions.[8][11]

What it depends on, and what depends on it

Deposition equipment processes semiconductor wafers across a range of sizes and substrate dimensions. KLA's SPTS Delta PECVD systems support wafer sizes from 75mm to 300mm with deposition temperatures from 80°C to 400°C. Lam Research's Kallisto platform handles substrates up to Gen 5.1 dimensions of 1100 x 1300mm for electrochemical deposition applications. The variety of wafer sizes and substrate formats requires different tool configurations for each manufacturing environment.[14][9]

Where it sits in the stack

What would break it

Lead times for critical deposition tools have extended dramatically beyond historical norms. For CVD and PVD equipment specifically, lead times have reached 18 to 30 months due to raw material and chip shortages. Lead times for critical tools from major suppliers have extended from the standard six months to over a year, with some doubling. The extended delivery schedules create planning challenges for fab operators building new capacity.[7][12]

Deposition equipment is among the first spending lines memory makers can defer in a downturn, exposing suppliers to severe revenue drawdowns when capacity plans change. The longest lead times in the equipment group mean order timing can disconnect from the memory cycle in both directions. Recovery from a period of allocation can take years when additional equipment and wafer manufacturing clean room facilities are required. The cyclical nature of semiconductor demand amplifies the impact on equipment suppliers.[5][3]

Samsung and SK Hynix are preparing to place orders early to secure equipment capacity and avoid having newly built fabs sit idle. Foundries maintain capacity utilization rates at close to 95% of full load through product mix adjustment and reallocation of resources. This tight utilization leaves little buffer for equipment delays or supply disruptions. Early ordering has become a competitive necessity for memory manufacturers.[12][4][6]

What to watch

SEMI forecasts that global semiconductor manufacturing equipment sales will hit a record $165.9 billion in 2026, a year-over-year increase of 23.2%, projected to reach $229.5 billion by 2028. The growth reflects sustained demand for deposition equipment alongside other semiconductor manufacturing tools. Memory makers are accelerating catch-up efforts, with domestic storage enterprises in particular driving competition. The forecast indicates continued strong investment in manufacturing capacity.[12][2]

Lam Research launched the Prestis PLD system in March 2024, bringing pulsed laser deposition to wafer-level mass production for the first time in semiconductor manufacturing. The company introduced the Coronus DX in June 2023 as the industry's first bevel deposition solution optimized for next-generation logic, 3D NAND, and other 3D chipmaking challenges. These product launches address emerging requirements at advanced nodes. New deposition technologies enable manufacturing of increasingly complex three-dimensional device structures.[9]

The technological iteration of the HBM4 generation is creating unprecedented development space for semiconductor equipment manufacturers. Market demand for core equipment including etching, deposition, and testing has skyrocketed as memory manufacturers compete. The convergence of advanced memory architectures and packaging requirements continues to drive innovation in deposition technology. High-bandwidth memory production represents a significant growth driver for deposition equipment suppliers.[2]

Related nodes

Sources

1. scmr.com · 2026-07-02T17:59:00
2. eu.36kr.com · 2025-12-14T00:00:00
3. electronics-sourcing.com · 2025-04-14T08:00:22
4. businesswire.com · 2022-06-22T10:00:00
5. techi.com · 2026-07-13T19:30:36
6. eetasia.com · 2022-07-04T00:00:00
7. trendforce.com · 22 June 2022
8. newsroom.lamresearch.com
9. lamresearch.com · 2023-06-20
10. en.wikipedia.org
11. tel.com
12. finance.biggo.com
13. serdp-estcp.mil · 2006
14. kla.com