The global semiconductor equipment manufacturing market is experiencing robust growth driven by increasing demand for advanced semiconductors, crucial for applications such as AI, IoT, 5G, and autonomous vehicles. Valued at approximately USD 103.34 billion in 2023, the market is projected to reach USD 218.60 billion by 2033, with a compound annual growth rate (CAGR) of 7.78% from 2024 to 2033. Key factors fueling this growth include technological advancements in semiconductor manufacturing, such as the transition to smaller node sizes and rising investments in semiconductor foundries. Additionally, government support through initiatives like the U.S. CHIPS Act and the European Union's semiconductor funding programs is contributing to market expansion as these policies aim to bolster local production capabilities over imports.

In other trading, TongweiLtd was trading firmly up 7.9% and ending the day at CN¥22.74. At the same time, Skyworks Solutions trailed, down 24.7% to finish the session at $65.60. As of two days ago, Skyworks appointed Philip Brace as CEO, reported a decline in earnings, declared a $0.70 dividend, and announced a $2 billion share repurchase program.

Skyworks Solutions is poised for growth through RF solutions in smartphone and AI advancements. Click here to explore the full narrative on their strategic positioning and potential risks.

Take a look at our Market Insights article titled "DeepSeek and Trump’s EOs: The Winners And Losers," where we explored the disruptive impact of DeepSeek's AI model on the AI chips market and the potential consequences for companies across the AI ecosystem.

Best AI Chip Stocks

• NVIDIA closed at $128.68 up 3.1%.
• Advanced Micro Devices finished trading at $110.16 down 1.7%, close to the 52-week low. This week, AMD reported increased year-over-year sales for 2024 but decreased fourth-quarter net income and provided guidance for revenue in the first quarter of 2025.
• QUALCOMM finished trading at $169.32 down 3.7%. On Wednesday, the company reported a year-over-year increase in both revenue and net income for the first quarter.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Sources:

• Simply Wall St
• "[Latest] Global Semiconductor Equipment Manufacturing Market Size/Share Worth USD 218.60 Billion by 2033 at a 7.78% CAGR: Custom Market Insights (Analysis, Outlook, Leaders, Report, Trends, Forecast, Segmentation, Growth Rate, Value)" from Custom Market Insights on GlobeNewswire (published 06 February 2025)

Companies discussed in this article include SHSE:600438 NasdaqGS:NVDA NasdaqGS:AMD NasdaqGS:QCOM and NasdaqGS:SWKS.

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