Semiconductor Fabrication Materials - Global Market Trajectory & Analytics

Global Semiconductor Fabrication Materials Market to Reach US$56.2 Billion by the Year 2026

Semiconductor fabrication material, including electronic chemicals such as silicon wafers, photoresists, electronic gases, wet chemicals, CMP slurries, and thin film metals, among others are used in the manufacture of ICs to improve their performance and durability. Growth in the market is set to be driven by increased utilization of digital integrated circuits or ICs in the automotive, telecommunication, electronics, and electrical industries. Furthermore, the increased advancements in semiconductor solutions, too, are driving the semiconductor industry growth, in turn fueling the semiconductor fabrication market growth. Electronic components` increased adoption by several end-use industries for the development of the multi-property components and to provide high-performance parts is the key factor driving the semiconductor material market growth. Rising demand for microelectronic devices because of digitalization and portable devices` trend, which in turn increased the development and consumption of wafers is propelling the semiconductor fabrication materials` demand. Increased demand for electronics and e-vehicles industry growth worldwide is anticipated to augment the semiconductor materials market further. Furthermore, the semiconductor fabrication material market observed considerable growth in the last few years, due to increased demand for digital ICs.

The recessionary climate, waxing competition, saturating developed markets, have all brought to the fore the importance of innovation in electronics. As manufacturers seek to differentiate themselves in the marketplace, sustained success hinges onto the ability to offer innovative products at competitive price. Product development efforts are largely geared towards achieving high performance and quality, and low operating costs of electronic devices.

New developments in the sector, in future, would be propelled by newer geographical markets. Technological advancements such as wireless communications, man-machine interface, pervasive computing and video digitization would create new markets while simultaneously regenerating older ones. Advancements would in turn be facilitated by the availability of SoC (systems-on-chip) technology, digital signal processors and more adaptable microprocessors. The SoC technology, with an architecture that normally uses less power and is more reliable and economical than the multi-chip technology, is perceived to be the next big phase in the design of integrated circuits. The technology attempts to integrate all parts of electronic systems including computers and PCBs into only one chip that would comprise one or more power management circuits, external interfaces, timing sources, memory blocks and microprocessors. The technology is expected to witness accelerated growth owing to cell phones being increasingly miniaturized.

Other major emerging technologies include CMP slurries with higher selectivity; Dual damascene processes; extensive acceptance of 300mm wafers; and precursor materials for barrier layers and low-k dielectrics. Copper and tantalum targets for seed and barrier layers; cleaning and etching gases with higher selectivity; deep UV 193mm and 248mm lithography and cleaning and etching chemicals with higher selectivity are some of the other emerging technologies.

Amid the COVID-19 crisis, the global market for Semiconductor Fabrication Materials estimated at US$44 Billion in the year 2022, is projected to reach a revised size of US$56.2 Billion by 2026, growing at a CAGR of 6.7% over the analysis period. Silicon Wafers, one of the segments analyzed in the report, is projected to grow at a 6.1% CAGR to reach US$19.1 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Photoresists & Adjuncts segment is readjusted to a revised 7.9% CAGR for the next 7-year period. This segment currently accounts for a 25.4% share of the global Semiconductor Fabrication Materials market. Photoresists are light-sensitive organic polymers that can be coated on the surface of the silicon wafer. Photoresists are typically used in applications such as microelectronics, fabrication of printed circuit boards, sand carving, and patterning and etching substrates.

The U.S. Market is Estimated at $3.6 Billion in 2022, While China is Forecast to Reach $12.4 Billion by 2026

The Semiconductor Fabrication Materials market in the U.S. is estimated at US$3.6 Billion in the year 2022. The country currently accounts for a 8.39% share in the global market. China, the world's second largest economy, is forecast to reach an estimated market size of US$12.4 Billion in the year 2026 trailing a CAGR of 7.8% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 6.4% and 3.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.3% CAGR while Rest of European market (as defined in the study) will reach US$1.2 Billion by the end of the analysis period. Taiwan remains the largest semiconductor material consumer globally for several years. The semiconductors` market growth in Asia-Pacific is because of growing government investments in the energy industry created several profitable opportunities for the major market players. The pandemic expedited several businesses` digital transformation, which in turn increased the semiconductor contents` consumption dramatically to benefit the entire ecosystem of semiconductor manufacturing.

Electronic Gases Segment to Reach $6 Billion by 2026

Electronic gases are used as reagents in the chip manufacturing process, which comprises deposition, ion implantation, lithography, etching, and are also used to maintain a clean, supportive environment for chip fabrication. In the global Electronic Gases segment, USA, Canada, Japan, China and Europe will drive the 3.6% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$2.3 Billion will reach a projected size of US$3.1 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$2.7 Billion by the year 2026.

Select Competitors (Total 77 Featured):

• Air Liquide SA
• Avantor, Inc.
• BASF SE
• CMC Materials Corporation
• Dow Chemical Company
• Hemlock Semiconductor Corporation
• Hitachi Chemical Company Limited
• JSR Corporation
• Kanto Chemical Co., Inc.
• KMG Chemicals Inc.
• Linde plc
• Merck KgaA
• Mitsubishi Gas Chemical Company, Inc.
• Mitsui Chemicals, Inc.
• Pibond Oy
• Praxair Technology, Inc.
• Sachem Inc.
• Shin-Etsu Chemical Co., Ltd.
• Showa Denko KK
• SUMCO Corporation
• Sumitomo Chemical Company Limited
• Tokyo Ohka Kogyo Co., Ltd.
• Wacker Chemie AG

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