Silicon EPI Wafer Market - Forecasts from 2023 to 2028

The silicon EPI wafer market was valued at US$3.135 billion in 2021 and is projected to expand at a CAGR of 4.45% over the forecast period to reach US$4.253 billion by 2028

Silicon EPI wafers are integral components within the semiconductor industry, serving as substrates for the manufacturing of integrated circuits (ICs), microelectromechanical systems (MEMS), power devices, and other semiconductor devices. The market primarily caters to various sectors, including consumer electronics, automotive, telecommunications, and industrial applications.

The silicon EPI (Epitaxial) wafer market pertains to the production and distribution of silicon wafers that have undergone epitaxial growth, a process involving the deposition of a thin layer of single-crystal silicon onto a silicon substrate. This process enhances the electrical properties of the wafer, making it highly suitable for semiconductor device fabrication. Several driving factors contribute to the growth of the Silicon EPI wafer market.

These include the escalating demand for advanced semiconductor devices with improved performance and power efficiency, rapid technological advancements such as 5G, artificial intelligence (AI), and the Internet of Things (IoT), the expansion of the consumer electronics market, and the integration of electronic systems in the automotive industry.

Additionally, the demand for power devices in renewable energy systems and energy-efficient applications further fuels market growth. However, the Silicon EPI wafer market encounters restraints such as substantial initial capital investments for facility establishment, complex production processes requiring specialized equipment and expertise, fluctuating raw material prices (e.g., silicon), intense competition leading to pricing pressures, and environmental concerns regarding manufacturing and waste management.

MARKET DRIVERS:

Increasing demand for advanced semiconductor devices

The growing demand for high-performance and power-efficient semiconductor devices is a significant driver for the Silicon EPI wafer market. Industries such as consumer electronics, automotive, telecommunications, and industrial applications require advanced semiconductor components to support technological advancements like 5G, AI, IoT, and electric vehicles.

Expansion of consumer electronics demand

 The consumer electronics sector, including smartphones, tablets, wearable devices, and smart home appliances, experiences continuous growth. This drives the demand for advanced semiconductor devices, subsequently increasing the need for Silicon EPI wafers.

For instance, as per the December 2022 published Production Forecasts for The Global Electronics and Information Technology Industries Report by the Japan Electronics and Information Technology Industries Association (JEITA), the production of global electronics and information technology industries is estimated to grow respectively by 1% and 3% year on year in 2022 and 2023 to reach a value of US$3.526 trillion, amid the increasing demand for the same including consumer electronics.

Key developments

• In November 2022, SiCO Semiconductor Technology (Suzhou) Co Ltd, based in Suzhou Industrial Park, commenced production of silicon carbide (SiC) epitaxial wafers after investing over RMB 300 million for the next 3 years (approximately US$42 million) in expanding its manufacturing capacity. The company's facility includes an ultra-clean workshop and aims to develop homegrown products with international competitiveness.
• In March 2023, Resonac Corporation effectively created and commenced large-scale manufacturing of a cutting-edge third-iteration premium silicon carbide (SiC) epitaxial wafer (HGE-3G) tailored for power semiconductors. The HGE-3G offers superior quality compared to the previous generation, contributing to the practical application of high-output next-generation power semiconductors.
• In October 2021, NexWafe, a company based in Germany, obtained €39 million in investment to propel its environmentally friendly solar wafer technology for the purpose of extensive manufacturing. Their proprietary EpiWafer process allows for the direct deposition of a crystalline silicon layer onto a kerfless wafer, reducing CO2 emissions by up to 70% and wafer costs by up to 30%. The funding, led by Reliance New Energy Solar, supported NexWafe in scaling up its technology and constructing a wafer gigafactory in India.

Growth anticipated in the 8-inch segment

The 8-inch silicon EPI wafer market is poised for significant growth during the forecast period. With increasing demand in industries such as consumer electronics and automotive, the 8-inch wafer size strikes a balance between cost efficiency and manufacturing scalability.

Technological advancements, including FinFET and 3D NAND, rely on high-quality EPI wafers for optimal device performance. The 8-inch size offers cost advantages over larger wafer sizes while benefiting from an established supply chain. As the industry transitions from 6-inch wafers, the demand for 8-inch EPI wafers is expected to rise, driven by higher chip yields and improved economies of scale.

Regional Insights

Based on geography, the silicon EPI wafer market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. The silicon EPI wafer market in North America is witnessing steady growth and is expected to continue its positive trajectory during the projected period. The region's strong presence in the semiconductor industry, with key players and advanced manufacturing capabilities, contributes to the market's expansion.

North America is a hub for technological innovation, driving the demand for high-quality EPI wafers used in various applications such as electronics, telecommunications, automotive, and aerospace. Additionally, increasing investments in research and development, coupled with the rising adoption of advanced semiconductor technologies, is fueling the market's growth. The region's focus on emerging technologies like 5G, the Internet of Things (IoT), and artificial intelligence (AI) further amplifies the demand for silicon EPI wafers.

Segmentation:

BY WAFER SIZE

• 6 Inch
• 8 Inch
• 12 Inch
• Others

BY APPLICATION

• LED
• Power Semiconductors
• MEMS-Based Devices
• Others

BY END-USER

• Automotive
• Aerospace
• Healthcare
• Consumer Electronics
• Others

BY GEOGRAPHY

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East And Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Taiwan
• Others