CMP Slurry Market - Forecast (2023 - 2028)

Overview

The CMP Slurry market size is forecast to reach USD 2,632.11 million by 2028, growing at a CAGR of 6.8% from 2023-2028. Chemical mechanical planarization (CMP) is a vital technological procedure used in the production of semiconductor wafers and chips. By utilizing both chemical and mechanical forces, it polishes and flattens wafer surfaces. A consistent surface is produced by the chemical mechanical planarization method for subsequent processing processes. Chemical mechanical planarization equipment examples include polishing, grinding, and slurry testing apparatus. Models for material removal procedures and models for planarization are the two main categories of CMP models, which are used in the manufacture of integrated circuits and memory discs, respectively. The need for mobile devices, PCs, and molded interconnect devices (MIDs) is driving growth in the semiconductor industry. More chips are being made as a result to support various functions in electronic devices. As a result, it is projected that the CMP market would be driven by expansion in the semiconductor industry over the forecast period.

Report Coverage

The report covers an in-depth analysis of the following segments of the CMP Slurry market.

• By Type: CMP Consumable, CMP Equipment
• By Product Type: Aluminum Oxide, Ceramic, Cerium Oxide, Silica, and Others 
• By Device Type: Memory and Logic
• By Application: Silicon Wafers, Optical Substrates, Disk Drive Components, and Other Micro Electronics Surfaces
• By Geography:  North America, South America, Europe, APAC, Row

Key Takeaways

• China, in particular, plays a crucial role in the expansion of the Asian market. Additionally, China is starting a homegrown chip program to use domestic semiconductors in 70% of its goods by 2025, up from 16% currently. Even while longer-term investments in the industry may have an impact on the supply chain as a result of the current COVID-19 outbreak, it is believed that the sector would quickly recover.
• Flash memory has been a key driving force since smartphones, which have a growing following and high storage demands, are becoming more and more common. Memory expansion is predicted to be fueled by new technologies like non-volatile memory, which offers faster and more durable performance than standard NAND. With these advancements, the CMP procedure may end up being crucial in fostering the expansion of the CMP slurry market.
• The primary factor influencing the use of CMP slurry is the nation's expanding semiconductor industry. The Taiwanese government is making serious efforts to completely exclude China from the supply chain. Taiwan announced a $200 million commitment to build microchips in January 2022. Additionally, a USD 1 billion investment was started with a focus on joint ventures between Lithuanian and Taiwanese businesses.

By Type -Segment Analysis

CMP Consumable dominated the CMP Slurry market in 2022, In order to enable its customers to produce smaller, faster, and more complicated devices, CMP consumable plays a crucial role in the manufacturing of innovative semiconductor devices. For instance, Cabot Microelectronics Corporation is a major supplier of performance materials to the pipeline industry and the industrial wood preservation business, and it plays a significant part in the manufacturing of cutting-edge semiconductor devices. To improve polishing performance and keep flaws under control, important CMP upstream materials such as abrasive play a more crucial function. Both the silica and ceria industries are undergoing new development in order to transition to high-purity colloidal-type abrasives.

By Product- Segment Analysis

Aluminum Oxide dominated the CMP Slurry market in 2022, The expansion of semiconductor applications in markets including data processing, consumer electronics, and others is fueling the growth of the semiconductor industry and increasing demand for aluminum oxide-based products. The market for CMP slurry is anticipated to develop as a result, as CMP is essential for offering the aforementioned technologies. Additionally, the need for new and enhanced consumer electronics and the rising trend of new technologies are helping the industry expand overall. Aluminum oxide is compatible with a variety of CMP slurries, such as those employed for the planarization of diverse materials such as silicon, copper, tungsten, and dielectric films. For the CMP procedure to be most effective in a given application, it can be added to slurries with various chemistries and pH levels.

By Device- Segment Analysis

Memory dominated the CMP Slurry market in 2022, Flash memory has been an important driving force due to the growing popularity of smartphones and their high storage needs. Memory growth is expected to be fueled by new technologies like non-volatile memory, which offers faster and more durable performance than standard NAND. With these advancements, the CMP procedure can end up being essential for propelling the CMP slurry market's expansion. According to the GSMA, for instance, North America has the greatest smartphone adoption rate as of 2021, at 82%, and that number may rise to 85% by the end of 2022. The market for CMP slurry could be driven by the rising popularity of smartphones.

For consumers, whose storage needs are growing as more information is created, and for OEMs in terms of bill of materials (BoM) cost, flash memory storage has emerged as a crucial element in smartphones. The demand for NAND flash has been rising dramatically, mostly due to the rise in average smartphone capacity. The growing acceptance of smartphones with 5G capabilities is anticipated to fuel market expansion.

By Application- Segment Analysis

Silicon Wafers dominated the CMP Slurry market in 2022, The semiconductor industry frequently uses silicon wafers as the substrate material. For the fabrication of integrated circuits (ICs) and other semiconductor devices, they offer a solid and dependable platform. The primary material being planarized during CMP is silicon wafers, which is a crucial step in the production of semiconductors. The compatibility of silicon wafers with CMP slurries is quite good. Numerous studies and characterizations have been done on the material characteristics of silicon, including its hardness, surface roughness, and chemical reactivity. It is possible to create CMP slurries particularly to interact with silicon wafers, resulting in efficient and controlled material removal. Some of the top market players offer CMP slurry material for Silicon wafer applications and support the expansion of the industry. For the primary and secondary polishing of silicon wafers, Ferro Corporation offers several different kinds of CMP slurries. The company's CMP slurries achieve the best metal CMP removal rates, which leads to a lower total cost of ownership and more productivity using already-existing space and equipment.

By Geography - Segment Analysis

North America dominated the CMP Slurry market in 2022. North America, notably the US, is the biggest market for Chemical Mechanical Planarization (CMP) slurry. Leading semiconductor companies have a sizable presence in the United States, which has long served as a main hub for semiconductor manufacturing. The prosperous semiconductor sector and the requirement for cutting-edge planarization methods are what is driving the demand for CMP slurries in North America. According to the GSMA, for instance, North America has the greatest smartphone adoption rate as of 2021, at 82%, and that number may rise to 85% by the end of 2022. The market for CMP slurry could be driven by the rising popularity of smartphones. Silicon Valley in California is one of many technical hubs and semiconductor production centers in North America that draw businesses and promote innovation. These clusters foster an atmosphere that is favorable for cooperation, knowledge sharing, and the creation of cutting-edge technology. By streamlining the supply chain and encouraging innovation, the close proximity of semiconductor manufacturers, equipment providers, and materials suppliers in these clusters helps the CMP slurry industry expand.

Drivers - CMP Slurry Market

A thriving semiconductor industry will fuel the market for CMP slurry

The use of CMP slurries is expected to increase as the semiconductor industry continues to enjoy extraordinary success in the categories of memory chips and logic boards. In the semiconductor industry, CMP slurry is a well-liked polishing and planarization method. Semiconductors are used in a variety of electronic devices, including servers, consumer, automotive, and industrial electronics. Modern cell phones, computers, flat-screen TVs, and other electrical devices can only process data at high speeds and with high efficiency.

The demand for smart devices with high-performance IC grows in lockstep with the demand for CMP slurries. The growth of the semiconductor sector continues to be advantageous for the worldwide CMP slurry market. The demand for semiconductors has increased globally as a result of the increased use of smartphones and tablets.

The top industry participants' key tactics will fuel market expansion.

Market share held by the top companies, who hold more than 50% of the market, is relatively high in the chemical mechanical planarization (CMP) slurry industry. To spur market growth, the vendors are implementing tactics for teamwork and product innovation. Among the most recent market changes are.

To become a market leader in electronic materials, Entegris has agreed to pay USD 6.5 billion to purchase CMC Materials. Particularly in the semiconductor industry, CMC Materials is a prominent supplier of cutting-edge materials. Entegris' solution set may be widened via the acquisition of CMC Materials' market-leading CMP portfolio, which would provide it access to a wide range of electronic materials. Entegris may be able to sell a wider range of cutting-edge, high-value products more quickly thanks to the complementary nature of the company's technology platforms.

Challenges - CMP Slurry Market

High Processing Costs Restrict Market Growth

It might be difficult to keep up with the constantly shifting market even while manufacturers are working hard to meet the high demand for integrated chips in the IT and telecoms sectors. Due to a rise in demand from the semiconductor sector, the providers of CMP slurry are finding it difficult to keep the distribution of their supply chain in balance.

The shelf life of consumables, which regulates manufacturing, ranges roughly from 6 months to 12 months, placing a constraint on the inventory of CMP slurry makers. As a result, there is a market gap as a result of rising demand and limited supply, which ultimately raises the price of the product as a whole. Due to the high overall demand, the operators in the semiconductor industry have been investing in CMP slurry alternatives.

Market Landscape

Acquisitions, Technology Launches, and R&D activities are key strategies adopted by players in the CMP Slurry market. In 2022, the Market share held by the top companies, who hold more than 50% of the market, is relatively high in the chemical mechanical planarization (CMP) slurry industry. Major players in the CMP Slurry market are Cabot Microelectronics Corporation, Showa Denko Materials Co. Ltd, Hitachi Chemical Co. Ltd, Fujifilm Corporation, Merck KGaA, Merck, BASF, and others.

Developments:

• In September 2022, FUJIFILM Corporation stated that it will invest JPY 2 billion (USD 13.8 million) in Kumamoto to construct a manufacturing facility that could produce state-of-the-art semiconductor materials. This facility is anticipated to aid in the growth of the electronic materials industry. The production subsidiary of Fujifilm located in Kumamoto Prefecture, FUJIFILM Kyushu Co. Ltd, will receive a cutting-edge facility for the production of CMP slurries, a crucial material used in semiconductor manufacturing, from the core company, FUJIFILM Electronic Materials Co. Ltd. It is expected to open in January 2024 and be Fujifilm's first CMP slurry manufacturing facility in Japan.
• In February 2022, at its Pyeongtaek plant, Merck announced the opening of a semiconductor CMP slurry manufacturing facility. In order to planarize semiconductor wafers, CMP slurry is a crucial component. For semiconductor firms like Samsung Electronics and SK Hynix, the facility will be used to polish wafers. Additionally, Merck is negotiating bulk supply agreements with important domestic clients. In the first part of this year, they want to begin product production.