• Semiconductor test equipment manufacturers’ revenue grew 18% YoY in 2024 driven by increasing semiconductor complexity and tester demand for AI-related semiconductors.
• SoC and memory testers accounted for three-fourths of the total revenue with 25% YoY growth due to increased demand for testers for compute and HBM DRAM.
• Advantest, which accounts for the bulk of the testing market, grew by 27% YoY as two-thirds of the company’s shipments catered to the computing segment which saw huge demand from both HPC/AI customers and custom ASIC partners in 2024.
• In 2025, robust demand for AI-related applications and recovery in tester demand for applications other than AI, such as automotive and industrial equipment, in H2 will drive revenue growth.
• Semiconductor complexity is driving an increase in the number of test insertions, accelerating tester demand, which will drive revenue growth in the long term.

Increasing semiconductor complexity and tester demand for AI-related semiconductors drove an 18% YoY increase in semiconductor test equipment manufacturers’ revenue in 2024. The top two players in this segment – Advantest and Teradyne – accounted for more than 90% of the test equipment market in 2024. Revenue from SoC and memory testers increased 25% YoY and accounted for three-fourths of the total revenue in 2024, primarily driven by increased demand from HPC/AI customers, custom ASIC partners and HBM DRAM customers.

Source: Counterpoint Research

An increase in semiconductor complexity, process node changes on the SoC side, increase in the number of stacks on the memory side, and high-performance next-generation SoCs and memory devices going into volume production in H2 2025 will help revenue growth in 2025. Increased R&D spend in 2024 after the contraction in 2023 helped revenue growth and will further capture future tester demand. As AI moves to the edge and increases penetration into consumer applications, test volumes will increase, adding to revenue growth in the long term.

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