Semiconductor Fabrication Materials Market Size

Global Semiconductor Fabrication Materials Market Overview

Semiconductor Fabrication Materials Market Size was valued at USD 52.9 Billion in 2022. The Semiconductor Fabrication Materials industry is projected to grow from USD 56.3 Billion in 2023 to USD 93.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.50% during the forecast period (2023 - 2032). Rising consumer demand for consumer electronics products, technological developments in electronic materials, and product innovation in those fields, are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Semiconductor Fabrication Materials Market Trends

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  Technicological advancements and product innovation of the electronic materials is driving the market growth

  
  

The semiconductor industry is experiencing a miniaturisation trend that is expected to continue growing as more processing steps are needed to produce advanced node ICs, heterogeneous integration, and 3D memory architectures, which results in increased wafer fabrication and packaging material consumption. Due to new material and fabrication breakthroughs, semiconductors are migrating away from rigid substrates and towards more flexible plastic and paper materials. Light-emitting diodes, solar cells, and transistors are just a few of the gadgets that have been made possible by the trend towards more flexible substrates.

With the increase in miniaturisation, the semiconductor sector has expanded, and developments and inventions in this area have had a direct impact on all downstream technologies. OSAT providers have seen a significant increase in demand from all end-user industries, particularly consumer electronics and automotive applications, as a result of the increased demand for high-end packaging solutions and rising packaging costs. Due to the more than 500 processing stages required to produce different products and the challenging working conditions faced by industry employees (such as the erratic demand and the fluctuating electronic market), the semiconductor sector is regarded as one of the most complex. The production of semiconductor wafers alone might involve up to 1,400 process stages, depending on the manufacturing process' complexity. Transistors are created on the lowest layer, but as several circuits are put together to build the finished product, the process is repeated.

Consumer electronics (CE) is a multimillion-dollar sector that continuously advances technology, develops new product lines, and adapts to changing consumer lifestyles. Various end-user sectors are progressively adopting cutting-edge consumer electronics items to improve their operations as a result of the Internet of Things. Cisco claims that the Internet of Things (IoT) is now a widely used method for connecting people, processes, objects, and data to the Internet and one another. In 2023, there are projected to be 14.7 billion M2M connections worldwide, up from 6.1 billion in 2018. Cisco also forecasts that by 2023, there will be 1.8 M2M connections for every person on the planet. Consumers will own 74% of all gadgets by 2023, including both fixed and mobile ones, with corporations owning the remaining 26%. In contrast to the corporate segment, which Cisco predicts will have a 12.0% CAGR, consumer share will expand at a slightly slower rate, at a 9.1% CAGR. Thus, driving the Semiconductor Fabrication Materials market revenue.

Semiconductor Fabrication Materials Market Segment Insights

Semiconductor Fabrication Materials Material Insights

The Semiconductor Fabrication Materials Market segmentation, based on Material, includes silicon wafers, photomasks, photoresists, wet chemicals, CMP slurry and pads, gases, sputter targets, and photoresist ancillaries. Silicon wafers segment dominated the global market in 2022. This is because silicon wafers have a diverse range of applications across end user industries.

Semiconductor Fabrication Materials Application Insights

The Semiconductor Fabrication Materials Market segmentation, based on Application, includes consumer appliances, power generation, electronic components, and others. The consumer appliances segment dominated the global market in 2022. The rising demand for consumer appliances around the world is to blame for this.

Figure 1: Semiconductor Fabrication Materials Market, by Application, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Semiconductor Fabrication Materials End User Industry Insights

The Semiconductor Fabrication Materials Market segmentation, based on End User Industry, includes telecommunication, energy, electrical and electronics, medical and healthcare, automotive, and others. Telecommunication segment dominated the Semiconductor Fabrication Materials Market in 2022. Due to the significant application in mobile phones and the strong demand for semiconductors in wireless communication, this is the case. Due to its superior speed and efficiency, semiconductor material is being used in wireless technology more and more frequently every day.

Semiconductor Fabrication Materials Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Semiconductor Fabrication Materials Market dominated this market in 2022 (45.80%). This is because companies like Applied Materials Inc., Kla Corporation, LAM Research Laboratories, and others are present in the market. Therefore, big providers operating in the region are looking to build factories in locations with generous subsidies. Further, the U.S. Semiconductor Fabrication Materials market held the largest market share, and the Canada Semiconductor Fabrication Materials market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: SEMICONDUCTOR FABRICATION MATERIALS MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Semiconductor Fabrication Materials market accounted for the healthy market share in 2022. This is due to improved economic ties with other nations and government measures to fund the construction of new semiconductor manufacturing facilities. For example, Euractiv Germany Reports said that the German government intended to invest USD 3.39 billion in the semiconductor manufacturing facility. Further, the German Semiconductor Fabrication Materials market held the largest market share, and the U.K Semiconductor Fabrication Materials market was the fastest growing market in the European region

The Asia Pacific Semiconductor Fabrication Materials market is expected to register significant growth from 2023 to 2032. This is a result of rising consumer demand for consumer electronics in these developing nations as well as rising demand for wireless technologies. Consumer electronics are in high demand in Taiwan, China, and India. Taiwan is the world's largest maker of semiconductors. Taiwan is home to many significant market participants. This is fueling the expansion of the Asia Pacific semiconductor materials market. Moreover, China’s Semiconductor Fabrication Materials market held the largest market share and the Indian Semiconductor Fabrication Materials market was the fastest growing market in the Asia-Pacific region.

Semiconductor Fabrication Materials Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Semiconductor Fabrication Materials market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Semiconductor Fabrication Materials industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Semiconductor Fabrication Materials industry to benefit clients and increase the market sector. In recent years, the Semiconductor Fabrication Materials industry has offered some of the most significant advantages to medicine. Major players in the Semiconductor Fabrication Materials market, including BASF SE, Kanto Chemical Co., Inc., Praxair, Inc., Dow Chemical Company, Air Products and Chemicals Inc., Air Liquide SA, Taiyo Nippon Sanso, Alent Plc, JSR Corporation, and Linde AG, are attempting to increase market demand by investing in research and development Applications.

An organisation called Indium Software runs a business that offers digital engineering services. In order to assist clients in implementing technology that generates quantifiable business value, the company offers to give extensive knowledge in application engineering, cloud engineering, data and analytics, DevOps, digital assurance, and gaming. Indium Corporation, a global materials supplier to American electronics assembly and semiconductor packaging firms, completed its newest 37,500-square-foot manufacturing facility in Penang, Malaysia, in November 2022. The new plant has started producing goods and will boost output to better serve the company's customers in Malaysia and the surrounding region, particularly Thailand and Vietnam.

Chemicals are produced by LG Chem Ltd., a division of LG Corp. Petrochemicals, IT and electrical materials, and energy solutions are all produced and sold by the corporation. Polyvinyl chloride (PVC), ethylene, propylene, butadiene, benzene, polarizers, glass substrates, semiconductor materials, and RO membranes are just a few of the products it offers. Additionally, it sells anti-diabetic medications, growth hormone, vaccines, and battery materials. It also produces and distributes display and battery materials for LCD photoresist, OLED materials, and other displays. In Daesan, Yeosu, Ochang, Cheongju, Ulsan, Naju, Iksan, Paju, and Gimcheon, it owns and runs manufacturing plants. The business operates, among other places, in China, India, Germany, the US, Vietnam, Brazil, Taiwan, Hong Kong, and Poland. Seoul, South Korea, serves as the company's main office. L.G. Chem started creating photoresist (P.R. ), a material used in semiconductor back-end processes, in May 2022 with the goal of making it available to all semiconductor enterprises globally.

Key Companies in the Semiconductor Fabrication Materials market include

• BASF SE


• Kanto Chemical Co., Inc.


• Praxair, Inc.


• Dow Chemical Company


• Air Products and Chemicals Inc.


• Air Liquide SA


• Taiyo Nippon Sanso


• Alent Plc


• JSR Corporation


• Linde AG

Semiconductor Fabrication Materials Industry Developments

July 2021: In order to meet the demand for its product, Showa Denko Materials Co. announced that it would enhance production capacity for semiconductor materials at its Taiwanese subsidiary.

March 2021: In response to a global chip shortage in the automotive and electronics sectors and worries that the United States is lagging behind in semiconductor production, Intel announced a USD 20 billion investment in two factories in Arizona.

Semiconductor Fabrication Materials Market Segmentation

Semiconductor Fabrication Materials Material Outlook

• Silicon Wafers


• Photomasks


• Photoresists


• Wet Chemicals


• CMP Slurry and Pads


• Gases


• Sputter Targets


• Photoresist Ancillaries

Semiconductor Fabrication Materials Application Outlook

• Consumer Appliances


• Power Generation


• Electronic Components


• Others

Semiconductor Fabrication Materials End User Industry Outlook

• Telecommunication


• Energy


• Electrical and Electronics


• Medical and Healthcare


• Automotive


• Others

Semiconductor Fabrication Materials Regional Outlook

• North America
  
  
  
  • U.S.
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America