Inductively coupled plasma etching, as a fundamental process in semiconductor manufacturing, requires precise control of the etching equipment to enhance process performance. A central challenge, however, lies in the nonlinear and multi-scale coupling effects among process parameters, plasma characteristics, and etching responses, which severely limit the effectiveness of conventional experience-driven process optimization. Focusing on the key physical processes in inductively coupled plasma etching (such as energy deposition, particle transport, and plasma-surface interactions), this review systematically summarizes recent progress by treating plasma parameters as the intermediate variables linking process conditions to etching outcomes. To establish a theoretical basis for understanding plasma control mechanisms, this paper first introduces the fundamental principles of inductively coupled plasma discharges, along with the corresponding physical modeling and experimental diagnostics. Subsequently, the article reviews key research advances from three perspectives: the source antenna configuration and its driving signals, etching chamber design, and radio-frequency bias sources. Specifically, the cross-section, shape, and structural layout of the antenna directly affect radio-frequency power coupling and thus the spatial distribution of the induced electromagnetic field; the driving parameters of the inductively coupled plasma source (e.g., power, frequency, voltage/current amplitude) exert significant control over plasma characteristics, including electron density, electron temperature, and their spatial distributions; meanwhile, advanced driving modes such as pulsed power modulation and dual-frequency driving have been demonstrated to further enhance plasma uniformity and mitigate plasma-induced damage. The aspect ratio of the etching chamber—the core region of plasma reactions—considerably affects plasma transport behavior. In addition, as a key factor regulating plasma pressure and residence time, the configuration of the gas injection and pumping system also influences the spatial distribution and characteristic parameters of the plasma. Moreover, the dielectric window, mounted on the top or sidewall of the chamber, exerts its own influence on the plasma through its material properties and the antenna-window spacing. On the substrate side, applying an external radio-frequency bias source enables independent control of plasma density and ion bombardment energy, where variations in bias parameters induce dynamic responses in etching behavior. Overall, this review summarizes how these critical hardware configurations and process parameters regulate plasma properties, thereby elucidating the inherent correlation between process conditions and key etching performance metrics (i.e., etch rate, uniformity, anisotropy, and selectivity). Beyond these conventional optimization approaches, it also highlights innovative applications of artificial intelligence in low-temperature plasma diagnostics, cross-scale modeling, and intelligent process control. Finally, future development directions for inductively coupled plasma etching technology to meet the requirements of sub-nanometer fabrication are presented.