Semiconductor Deposition Material Market Report 2026

The semiconductor deposition material market size has grown strongly in recent years. It will grow from $24.51 billion in 2025 to $26.43 billion in 2026 at a compound annual growth rate (CAGR) of 7.8%. The growth in the historic period can be attributed to growth of semiconductor manufacturing, increasing use of ICs and memory devices, early adoption of PVD and CVD techniques, rising consumer electronics demand, expansion of automotive electronics.

The semiconductor deposition material market size is expected to see strong growth in the next few years. It will grow to $35.29 billion in 2030 at a compound annual growth rate (CAGR) of 7.5%. The growth in the forecast period can be attributed to rise of advanced IC fabrication processes, increasing adoption of ALD for high-performance devices, growth in power electronics and optoelectronics, demand from automotive and aerospace sectors, innovation in compound semiconductor materials. Major trends in the forecast period include rising adoption of atomic layer deposition for precise thin films, growing demand for high-purity semiconductor deposition materials, increasing use of metals, oxides, and nitrides in device fabrication, rising integration of deposition materials in memory and power devices, higher preference for advanced deposition techniques like plasma-enhanced and spatial ALD.

The expansion of electric vehicles is expected to drive the semiconductor deposition material market during the forecast period. Electric vehicles rely on electric motors and batteries, requiring power management integrated circuits, battery management systems, and motor control semiconductors for efficient operation. Falling battery costs have made electric vehicles more accessible, encouraging widespread adoption. Semiconductor deposition materials support this growth by enabling high-performance power electronics and control chips that optimize battery management, charging efficiency, and overall vehicle performance. For instance, in May 2025, the International Energy Agency reported over 4 million electric vehicles sold worldwide, a 35 percent increase compared to 2024, with projections exceeding 20 million sales by the end of 2025, a 25 percent increase from 17 million sold in 2024. Therefore, electric vehicle expansion is driving the semiconductor deposition material market.

Major companies in the semiconductor deposition material market are developing advanced barrier materials for extreme ultraviolet lithography and next-generation chip architectures. These materials provide protection against moisture, oxygen, and chemical contamination, ensuring structural integrity of ultra-thin device layers at nanoscale. In May 2023, Merck KGaA, a Germany-based science and technology company, introduced advanced barrier materials for semiconductor applications. These materials allow thinner film stacks without compromising reliability, supporting sub-3 nm nodes and advanced 3D device structures. They improve process uniformity, film adhesion, and long-term device stability, increasing yield rates for logic and memory manufacturers, and are compatible with existing CVD and ALD tools for easy integration into semiconductor fabrication.

In January 2025, SCHOTT AG, a Germany-based advanced materials technology group, acquired QSIL GmbH Quarzschmelze Ilmenau for an undisclosed sum. SCHOTT aims to expand its portfolio of high-performance quartz glass and deposition materials used in semiconductor advanced packaging, thin-film deposition, and precision process equipment, strengthening its materials offering for deposition equipment and manufacturing. QSIL GmbH Quarzschmelze Ilmenau is a Germany-based specialist in high-purity quartz glass and high-tech materials used in semiconductor manufacturing, including deposition tool glass components.

Major companies operating in the semiconductor deposition material market are Shin-Etsu Chemical Co. Ltd., Merck KGaA, JSR Corporation, Fujifilm Electronic Materials Co. Ltd., Dow Inc., Entegris Inc., Air Products and Chemicals Inc., Air Liquide S.A., Linde plc, SK Materials Co. Ltd., Evonik Industries AG, Wacker Chemie AG, Mitsubishi Chemical Corporation, ADEKA Corporation, Tanaka Kikinzoku Group, Materion Corporation, Soulbrain Co. Ltd., Kanto Chemical Co. Inc., Honeywell International Inc., Plansee Group, Cabot Microelectronics Corporation, and Sumitomo Chemical Co. Ltd.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on semiconductor deposition materials and related chemical precursors have affected the production costs and supply chains in regions like Asia-Pacific and North America, where semiconductor manufacturing is concentrated. The tariffs impact high-demand segments such as ALD, CVD, and PVD materials used in integrated circuits, memory, and power devices. While prices have increased, these tariffs have encouraged regional sourcing, local production strategies, and investment in alternative materials, creating opportunities for domestic suppliers to expand market share.

The semiconductor deposition material market research report is one of a series of new reports that provides semiconductor deposition material market statistics, including semiconductor deposition material industry global market size, regional shares, competitors with a semiconductor deposition material market share, detailed semiconductor deposition material market segments, market trends and opportunities, and any further data you may need to thrive in the semiconductor deposition material industry. This semiconductor deposition material market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Semiconductor deposition material is used to create thin films and layers on semiconductor wafers during the manufacturing of electronic components. This material enables the formation of conductive, insulating, or semiconducting layers essential for device functionality. It ensures precise layer formation, uniformity, and performance in integrated circuits, transistors, and other microelectronic devices.

The main types of semiconductor deposition material are physical vapor deposition, chemical vapor deposition, atomic layer deposition, and electrochemical deposition. Physical vapor deposition is a vacuum-based process that deposits thin films or coatings on a surface by vaporizing a solid material and condensing it on a substrate. Material compositions include metals, oxides, nitrides, polymer-based materials, silicon-based materials, and compound semiconductors, selected for specific electrical, optical, or mechanical requirements. Deposition techniques include chemical vapor deposition, physical vapor deposition, atomic layer deposition, and others. Applications cover integrated circuits, memory devices, power devices, optoelectronic devices, light-emitting diodes, laser diodes, and semiconductor packaging. End-use industries include consumer electronics, telecommunications, aerospace and defense, automotive, healthcare, and industrial automation.North America was the largest region in the semiconductor deposition material market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the semiconductor deposition material market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the semiconductor deposition material market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The semiconductor deposition material market consists of sales of sputtering targets, dielectric materials, metal-organic compounds, gases, and other specialty materials. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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