Inductively coupled plasma etching technology, as a fundamental process in semiconductor manufacturing, requires precise control of etching equipment to enhance process performance. However, a central challenge in this technology lies in the nonlinear and multiscale coupling effects among process parameters, plasma characteristics, and etching responses, which severely limits the effectiveness of conventional experience-driven process optimization. Focusing on 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 discharge, along with the corresponding physical modeling and experimental diagnostic methods. Subsequently, the article reviews key research advances in recent years from three perspectives: the inductively coupled plasma 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 spatial distribution; meanwhile, advanced driving modes such as pulsed power modulation and dual-frequency driving have been demonstrated to further enhance plasma uniformity and mitigate surface-induced damage. As the core region of plasma reactions, the aspect ratio of the etching chamber considerably affects plasma transport behavior. Moreover, the dielectric window—mounted on the top or sidewall of the chamber—exerts a significant influence on the spatial distribution and characteristic parameters of the plasma, which is attributed to its material properties, spacing relative to the antenna, and the configuration of the chamber’s pumping system (a key factor regulating plasma pressure and residence time). On the substrate side, the application of 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. Collectively, 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 catering to the requirements of sub-nanometer fabrication are presented.