Semiconductor Machinery Manufacturing in Canada - Market Research Report (2014-2029)
New York, United States
Last Updated: June 2024
NAICS 33329aCARevenue
$145.0m
Past 5-Year Growth
Profit
$X.Xm
Employees
531
Businesses
10
Wages
$XX.Xm
Semiconductor Machinery Manufacturing in Canada industry analysis
Semiconductor machinery manufacturers supply capital equipment for various processes in semiconductor manufacturing. While semiconductors have become the foundation of nearly every technology today, years of outsourcing semiconductor manufacturing put Canada in a weak position globally. Rising import penetration has been specifically challenging to the domestic industry. East Asian countries dominate semiconductor production, where enormous scale, massive R&D investment and lower-cost labour make it near impossible for domestic manufacturers to compete.But, an explosion in semiconductor demand during the COVID-19 pandemic led to supply shocks, boosting machinery purchases from domestic and foreign manufacturers expanding production volume. High interest rates and concerns about how consumers will respond to a recession are curtailing equipment sales – and profit – in 2023. In all, industry-wide revenue has been declining at a CAGR of 33.3% to total an estimated $145.0 million in 2023, when revenue will jump an expected 1.9%.The pandemic's havoc on the semiconductor supply chain showcased its weaknesses. To lower its dependence on foreign suppliers, the Canadian government announced a $240.0 million investment into bolstering domestic production in 2022. Investment in domestic semiconductor production leaves equipment manufacturers well-positioned, as manufacturers can't create semiconductors without equipment. Developing Canada's semiconductor industry can't come without cooperation with the US– leading the countries to partner in establishing a bilateral semiconductor manufacturing corridor.Semiconductors will remain the backbone of tech transformation, but the industry's trajectory will depend on if the Canadian economy enters a downturn. Prolonged high interest rates and a recession would cause consumers to rethink spending and industrial capacity to slow. In a downturn, semiconductor manufacturers don't invest in new production lines or fabrication facilities, dropping new equipment sales. Still, tech advances will push semiconductor development ahead, specifically benefiting equipment manufacturers specializing in advanced machines for components in areas like AI or electric vehicles. Semiconductor equipment manufacturing revenue is expected to increase at a CAGR of 1.5% to $156.0 million over the next five years.
Trends and Insights
- Canada’s semiconductor machinery manufacturers got a boost as semiconductor demand exploded during the pandemic. Now, tense international competition, an alleviating chip shortage and recession concerns temper new capital equipment sales.
- An increasingly digital world expands the need for data computing and storage. Semiconductor machinery manufacturers producing equipment tailored to data computing components benefit from this rapidly growing area.
- Ontario is Canada’s manufacturing hotspot. Manufacturers benefit from the province’s share of the skilled workforce, easy access to the US and proximity to downstream buyers.
- Striking a balance between innovation and efficiency influences a manufacturer’s success. While investing in R&D is critical to stay ahead of tech advances, managing production costs is necessary to be competitive.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 33.3 % over the past five years, to reach an estimated $145.0m in 2024.
Trends and Insights
Semiconductor machinery manufacturers continue navigating a challenging landscape post-COVID
- Semiconductors have become the foundation of nearly every modern-day technology. Yet, an explosion in demand for them during the COVID-19 pandemic led to supply shocks, creating long-term shortages and leaving industries scrambling for the components.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Regional cooperation will benefit Canadian machinery manufacturers
- Tense trade and geopolitical relations between China and the US are pressuring the US to reshore and develop its semiconductor production. Doing so will require regional cooperation between Canada, Mexico and the US.
Biggest companies in the Semiconductor Machinery Manufacturing in Canada
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
ATS | 76.5 | 6.6 | 8.6 | |
Angstrom | 9.1 | 0.4 | 4.4 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Foundry and logic equipment, NAND equipment and DRAM equipment. Foundry and logic equipment is the largest segment of the Semiconductor Machinery Manufacturing in Canada.
Trends and Insights
Investment in semiconductor production boosts sales of wafer fabrication equipment
- Foundry and logic wafer fabrication equipment are crucial components of the semiconductor manufacturing process.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Printing, Paper, Food, Textile & Other Machinery Manufacturing in Canada
Complementors
- Computer Manufacturing in Canada
- Computer Peripheral Manufacturing in Canada
- Semiconductor & Other Electronic Component Manufacturing in Canada
International industries
- Global Semiconductor & Electronic Parts Manufacturing
- Semiconductor Machinery Manufacturing in the US
- Computer & Peripheral Equipment Manufacturing in Ireland
- Semiconductor Manufacturing in China
Table of Contents
About this industry
Industry definition
This industry manufactures equipment used to make semiconductors, more commonly known as chips or integrated circuits. This equipment includes wafer-processing equipment, semiconductor assembly and packaging equipment and other semiconductor-making machinery.
What's included in this industry?
Manufacture etching equipmentManufacture microlithographyManufacture semiconductor assembly and packaging machineryManufacture chemical vapour equipmentManufacture surface mount machinery for making printed circuit boardsManufacture thin layer deposition equipmentManufacture wafer processing equipmentManufacture photolithography equipmentManufacture microelectromechanical systems manufacturing equipmentCompanies
ATSAngstromPurchase this report to view all 2 major companies in this industry.
Related Terms
FABWAFERPHOTOVOLTAICNANOMETRE (NM)SEMICONDUCTORIndustry Code
NAICS 334410 - Semiconductor Machinery Manufacturing in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Canada’s semiconductor machinery manufacturers got a boost as semiconductor demand exploded during the pandemic. Now, tense international competition, an alleviating chip sho...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
An increasingly digital world expands the need for data computing and storage. Semiconductor machinery manufacturers producing equipment tailored to data computing components...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Ontario is Canada’s manufacturing hotspot. Manufacturers benefit from the province’s share of the skilled workforce, easy access to the US and proximity to downstream buyers.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each province in 2024
- Number and share of revenue each province accounts for in 2024
- Number and share of wages each province accounts for in 2024
- Number and share of employees in each province in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Striking a balance between innovation and efficiency influences a manufacturer’s success. While investing in R&D is critical to stay ahead of tech advances, managing producti...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
No single company controls the Canadian semiconductor machinery manufacturing market. Canada relies heavily on international companies for semiconductor production, making it...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of ATS's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Angstrom's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for ATS, and factors influencing its performance in the industry
- Description and key data for Angstrom, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
A new partnership between Canada and the US will bolster domestic semiconductor production. A commitment to develop and strengthen the semiconductor supply chain in North Ame...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Acquiring inputs takes more than half of a manufacturer’s revenue. Spending on components to produce equipment is critical, but dependence on global suppliers makes managing ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Assets (2017-2022)
- Liabilities (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Semiconductor Machinery Manufacturing industry in Canada in 2024?
The market size of the Semiconductor Machinery Manufacturing industry in Canada is $145.0m in 2024.
How many businesses are there in the Semiconductor Machinery Manufacturing in Canada industry in 2024?
There are 10 businesses in the Semiconductor Machinery Manufacturing industry in Canada, which has grown at a CAGR of 2.1 % between 2019 and 2024.
Has the Semiconductor Machinery Manufacturing industry in Canada grown or declined over the past 5 years?
The market size of the Semiconductor Machinery Manufacturing industry in Canada has been growing at a CAGR of 33.3 % between 2019 and 2024.
What is the forecast growth of the Semiconductor Machinery Manufacturing industry in Canada over the next 5 years?
Over the next five years, the Semiconductor Machinery Manufacturing industry in Canada is expected to grow.
What are the biggest companies in the Semiconductor Machinery Manufacturing market in Canada?
The biggest companies operating in the Semiconductor Machinery Manufacturing market in Canada are ATS and Angstrom
What does the Semiconductor Machinery Manufacturing in Canada include?
Manufacture etching equipment and Manufacture microlithography are part of the Semiconductor Machinery Manufacturing industry.
Which companies have the highest market share in the Semiconductor Machinery Manufacturing in Canada?
The company holding the most market share in Canada is ATS.
How competitive is the Semiconductor Machinery Manufacturing industry in Canada?
The level of competition is high and increasing in the Semiconductor Machinery Manufacturing industry in Canada.
