With continued growth expected in 2025, Semiconductor test equipment revenue soared 18 per cent in 2024, driven by AI, HPC, and SoC demand. Advantest and Teradyne lead.
The revenue for semiconductor test equipment manufacturers globally rose by 18 per cent year-on-year (YoY) in 2024, driven by growing semiconductor complexity and a surge in demand for AI-related semiconductor testers.
According to a report by Counterpoint Research, system-on-chip (SoC) and memory testers made up three-quarters of total revenue, reflecting a 25 per cent YoY growth due to heightened demand from high-performance computing (HPC), AI customers, and HBM DRAM markets.
Advantest, which dominates the testing market, saw a 27 per cent YoY increase, with approximately two-thirds of its shipments directed towards the computing sector, bolstered by significant demand from both HPC/AI clients and custom ASIC partners.
Teradyne, another major player, contributed to the overall market growth, growing by a modest 5 per cent, capturing a substantial share of the market. The total earnings for these companies increased from $6.24 billion in 2023 to $7.34 billion in 2024, reflecting an overall growth of 18 per cent.
Looking ahead to 2025, the report predicts that a strong demand for AI-related applications and a recovery in tester demand for other sectors, such as automotive and industrial equipment, are expected to fuel further revenue growth.
Plus, the increasing complexity of semiconductors is driving more test insertions, which is expected to accelerate tester demand and support long-term revenue expansion.
As semiconductor complexity rises, including changes in process nodes and the scaling of memory stacks, the market will see continued demand for advanced SoCs and memory devices, particularly as these products enter volume production in the second half of 2025.
Increased research and development (R&D) spending in 2024, following a contraction in 2023, is expected to sustain this growth, with AI technologies expanding into consumer applications and driving long-term demand for test equipment.
