The Epitaxy Equipment Market is expected to grow at a CAGR of 20% during the forecast period 2021 - 2026. The growth of the market can be attributed to the continuous introduction of new LED devices and their growing applications in power industry.
- Further, they are being increasingly used in wireless applications like satellite communication. AIXTRON SE provided Sumitomo Electric Device Innovations, Inc.with an AIX G5+ tool with 8x6-inch wafer configuration in order to expand the production capacity of GaN-on-SiC radio frequency (RF) devices for aiding the growth of rapidly expanding 5G mobile networks.
- The growth of alternative non-silicon-based substrates such as GaAs, GaN, SiC and InP are creating new avenues for the market. Moreover, wide-bandgap materials like SiC substrates are being increasingly deployed in the power electronics market. Power consumption reduction is necessary for electrification of transportation, renewable energy, motor drives and power supply applications.
- The outbreak of the novel coronavirus, is expected to negatively affect silicon wafer sales in the second half of 2020 with possible effects on price negotiations in 2021. China’s small-diameter silicon wafer facilities have been affected as utilization dropped between 30 percent and 50 percent in February. By the end of March, however the utilization rate at Chinese silicon wafer manufacturers has recovered to around 80 percent. Taking into account the Chinese recovery, we project a V-shaped recovery for the market, if proper stimulus packages are announced by the markets across the globe.
Key Market Trends
Continuous Introduction of Disruptive LED Devices will Act as a Driver
- The rise in demand for LED lights has favored the market substantially. With the growing demand for high-performance alternatives in the lighting industry, Epitaxial wafer has emerged as the best material for optimal performance.
- The visible LED industry is diversifying its activities towards specialized UV and IR LEDs that are based on GaAs substrates. LED manufacturers are also developing new types of LEDs to continuallky create value in consumer displays, like miniLEDs and microLEDs. Apple for instance is has started adoption of its higher-end 2021 smartwatch model. MicroLEDs are also expected to be increasingly used in smartphone products, that will affect the epi-ready wafer market.
- Further, researchers at the Sheffield University developed a new method to deposit high-brightness green InGaN microLED arrays. The new process, in which the InGaN stack is direectly grown within pre-patterned micro-hole arrays through a thin SiO2 layer is expected to aid their applications in this end user segment.
Asia - Pacific is Expected to be the Fastest Growing Market
- According to data released by SEMI, Taiwan is expected to become the largest equipment market in the world in 2020, going ahead of Korea. China, and Korea are expected to occupy the second and third positions. The equipment market recovery is being fueled by advanced logic and foundry, multiple new projects in China, and, to some extent, growth in demand for memory chips.
- The region has some of the worlds largest epitaxial wafer manufacturers that are expected to further expand their operations. EpiWorld , a leading China based producer for instance seeks to expand its production capacity. The company has completed production lines for 4- and 6-inch SiC epitaxial wafers for making 600V, 1,200V and 1,700V power devices.
- Further, Government of India recently proposed launching a new scheme in line with the “Assemble In India" proposal of the 2019-20 Economic Survey to make India a hub for electronic manufacturing in the near future. India and Israel have been collaborating to facilitate development of the Indian electronics manufacturing industry and the the 11th India Israel Forum recently proposed introduction of USD 912 million capex subsidy for new equipment introduction to the industry. Such steps are expected to aid market growth in the region.
The competitive landscape of the epitaxial equipment market is dynamic. The growing applications of the market are continually leading to new innovations and entry of new players in the market. Some of the recent developments of the market are as follows:-
- November 2019 - AIXTRON SE, a global leader in deposition equipment to the semiconductor industry, has provided an AIX G5 WW C system to EpiWorld International Co., Ltd for the further development of next generation silicon carbide (SiC) epitaxial wafers to be used for manufacturing of power devices for automotive applications.
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Table of Contents
1.2 Study Assumptions
1.3 Scope of the Study
4.2 Market Drivers
4.2.1 Continuous Introduction of Disruptive LED Devices
4.2.2 Growing Use in Power Applications is Expected to Act as Driver
4.3 Market Restraints
4.3.1 Complexities Associated with the Design
4.4 Porters Five Force Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Industry Value Chain Analysis
4.6 Assessment of Impact of Covid-19 on the Industry
5.1.2 HT CVD
5.2.3 Wide-bandgap Material
5.3.1 North America
5.3.4 Rest of the World
6.1.1 II-VI Incorporated
6.1.2 Applied Materials, Inc.
6.1.3 Intelligent Epitaxy Technology, Inc.
6.1.4 DOWA Electronics Materials Co., Ltd.
6.1.5 Optowell Co.,Ltd
6.1.6 Aixtron SE
6.1.7 NuFlare Technology, Inc. (Toshiba Electronic Devices and Storage Corporation)
6.1.8 Siltronic AG
6.1.9 Tokyo Electron Limited
A selection of companies mentioned in this report includes:
- II-VI Incorporated
- Applied Materials, Inc.
- Intelligent Epitaxy Technology, Inc.
- DOWA Electronics Materials Co., Ltd.
- Optowell Co.,Ltd
- Aixtron SE
- NuFlare Technology, Inc. (Toshiba Electronic Devices and Storage Corporation)
- Siltronic AG
- Tokyo Electron Limited