Wafer Fabrication Market Size was valued at USD 70.2 billion in 2023. The Wafer Fabrication market industry is projected to grow from USD 81.7 Billion in 2024 to USD 105.4188128 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.24% during the forecast period (2024 - 2032). Increased demand from the consumer electronic industry and the technological advancements in the telecom sector are leading to higher adoption and are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Increase in the rising need for semiconductor manufacturing facilities is driving market growth.
Front-end semiconductor production facilities, also known as fabs, have recently been operating at utilization rates exceeding 80%, with certain fabs reaching as high as 90-100% due to the increasing demand for semiconductors. However, the extended manufacturing time required for semiconductors necessitates increased capacity utilization. The semiconductor industry is rapidly expanding fab capacity utilization to meet the growing demand. As per SEMI's World Fab Forecast, published in June 2021, semiconductor manufacturers have already introduced 19 new high-volume fabs in 2021, and an additional 10 high-volume fabs are slated for construction in 2022. This factor drives the market CAGR.
Additionally, governments worldwide have made the strategic relevance of semiconductors and their growing importance for economic competitiveness and supply chain resilience a top concern. All end-user industries, including the automotive and consumer electronics sectors, are extremely concerned about supply chain disruptions and chip shortages. Increased geopolitical unrest has highlighted some nations' need to realign and strengthen their positions within the semiconductor supply chain. Different governments have been investigating and developing different plans for the domestic expansion of the semiconductor industry.Furthermore, the prominent factors that impact the semiconductor wafer market growth are an increase in demand for ultra-thin wafers, high adoption of consumer electronics devices, and growth in the semiconductor industry. In addition, the surge in the Internet of Things (IoT) technology drives the semiconductor wafer market. On the contrary, an increase in investment in wafer fabrication equipment & materials and a rise in the use of wafers in the automotive industry. Thus, driving the Wafer Fabrication market revenue.
The Wafer Fabrication Market segmentation, based on type, includes 65 nm, 45 nm, 32 nm, 22 nm, 14 nm, 10 nm, and 7nm. The 65 nm segment dominated the market due to the growing need for larger memory storage capacities in electronic devices. However, 32 nm is anticipated to be the fastest growing in the coming years as the telecom industry grows.
Wafer Fabrication Process Insights
Based on the fabrication process, the Wafer Fabrication Market segmentation includes the back end of line processing and the front end of line processing. The front-end of line processing segment dominated the market; the front-end of line processing ensures that the circuit's numerous parts, such as the resistors, transistors, and capacitors, are integrated. The back end of the line processing category is projected to experience the most significant growth rate in the forecast period. The Back-End-of-Line (BOEL) process facilitates the connection of different electrical components on the wafer.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Based on the fabrication process, the Wafer Fabrication Market segmentation includes integrated device manufacturers, foundry, and memory. The memory segment dominated the market, Due to the growing popularity of electric and driverless vehicles; the automotive industry is expected to use memory-integrated circuits (ICs) more frequently. The integrated device manufacturer category is anticipated to grow significantly over the forecast period. Semiconductor companies, called integrated device manufacturers (IDMs), design, manufacture, and sell integrated circuit (IC) products. When the company manages semiconductor production internally, IDM is not a fabricated semiconductor company that outsources production to different electronic devices.
Segmented by Region, the study provides market insights for North America, Europe, Asia Pacific, and the Rest of the World. The North American Wafer Fabrication market will dominate, owing to the adoption of the wafer fabrication technique in this Region's electronic device production, which has been encouraged by rapidly evolving technology to boost the market growth in this Region.
In addition, major countries examined in the report market include the United States, Canada, Germany, France, United Kingdom, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: Wafer Fabrication Market SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Wafer Fabrication market accounts for the second-largest market share due to themarket supported by the rising demand for and widespread use of consumer electronics products. Further, the German Wafer Fabrication market held the largest market share, and the UK Wafer Fabrication market was the largest-growing market in the European Region.
The Asia-Pacific Wafer Fabrication Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due tourbanization growing and labor costs rising, which is growing the market. Moreover, China’s Wafer Fabrication market held the largest market share, and the Indian Wafer Fabrication market was the largest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the Wafer Fabrication market, grow even more. Market participants are also undertaking different 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. The Wafer Fabrication industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturer’s use in the global Wafer Fabrication industry to benefit clients and increase the market sector. The Wafer Fabrication industry has offered some of the most significant advantages in recent years. Major players in the Wafer Fabrication market include Tokyo Electron Limited, KLA-Tencor Corporation, ASML Holding NV, Lam Research Corporation, Intel Corporation, Motorola Solutions Inc, SCREEN Semiconductor Solutions Co. Ltd, Applied Materials Inc, Hitachi High- Technologies Corporation, Samsung., others, are attempting to increase market demand by investing in research and development operations.
SK Strong CSS, a subsidiary of South Korea-based SK Siltron and the SK Group, offers a reliable global source of leading-edge, production-proven, high-crystal quality silicon carbide (SiC) wafers and epitaxy services.SK Siltron announced the beginning of the operation of the Silicon carbide (SiC) semiconductor wafer manufacturing plant in Bay City, Michigan, US. The company has a plan to produce around 60,000 annually. Also, a 6-inch SiC wafer is the main product of the company.
Infineon Technologies AG is Germany's largest semiconductor manufacturer. Before the split, the semiconductor business was part of the former parent company Siemens AG. With approximately 50,280 employees, Infineon is one of the ten biggest semiconductor manufacturers in the world. Infineon Technologies AG launched its high-tech chip factory for power semiconductor devices on 300-millimeter thin wafers at its Villach site in Austria. At EUR 1.6 billion, the investment made by the company represents one of the largest such projects in the microelectronics sector in Europe. According to the company, the annual capacity planned for industrial semiconductors from the facility is sufficient to equip solar systems producing around 1,500 TWh of electricity, around three times Germany's annual power consumption.
KLA-Tencor Corporation
ASML Holding NV
Lam Research Corporation
Intel Corporation
Motorola Solutions Inc
SCREEN Semiconductor Solutions Co. Ltd
Applied Materials Inc
Hitachi High- Technologies Corporation
Samsung
March 2022: SK Siltron announced the beginning of the operation of the Silicon carbide (SiC) semiconductor wafer manufacturing plant in Bay City, Michigan, US. The company has a plan to produce around 60,000 annually. Also, a 6-inch SiC wafer is the main product of the company.
September 2021: Infineon Technologies AG has established a high-tech chip company to produce electronic semiconductor devices on 300 mm thin sheets at its Villach plant in Austria. With an investment of 1.6 billion euros, the company is one of the largest projects in the European microelectronics sector. According to the company, the annual semiconductor production capacity at the factory is sufficient to install a solar system designed around 1,500 terawatt-hours, about three times Germany's annual electricity consumption.
65 nm
45 nm
32 nm
22 nm
14 nm
10 nm
7nm
The back end of line processing
The front end of line processing
Integrated device manufacturer
Foundry
Memory
North America
US
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
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 70.2 billion |
| Market Size 2024 | USD 81.7 billion |
| Market Size 2032 | USD 105.4188128 billion |
| Compound Annual Growth Rate (CAGR) | 3.24% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Size, Fabrication Process, End-User, and Region |
| Geographies Covered | North America, Europe, AsiaPacific, and the Rest of the World |
| Countries Covered | USA, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Tokyo Electron Limited, KLA-Tencor Corporation, ASML Holding NV, Lam Research Corporation, Intel Corporation, Motorola Solutions Inc, SCREEN Semiconductor Solutions Co. Ltd, Applied Materials Inc, Hitachi High- Technologies Corporation, Samsung. |
| Key Market Opportunities | Initiatives by the government to support the semiconductor industry |
| Key Market Dynamics | An increase in the rising need for semiconductor manufacturing facilities |
Wafer Fabrication Market Highlights:
Frequently Asked Questions (FAQ) :
The Wafer Fabrication Market size was valued at USD 70.2 Billion in 2023.
The global market is growing at a CAGR of 3.24% during the forecast period, 2024-2032.
North America had the largest share of the global market
The key players in the market are Tokyo Electron Limited, KLA-Tencor Corporation, ASML Holding NV, Lam Research Corporation, Intel Corporation, Motorola Solutions Inc, SCREEN Semiconductor Solutions Co. Ltd, Applied Materials Inc, Hitachi High- Technologies Corporation, and Samsung.
The 65 nm category dominated the market in 2022.
The memory had the largest share in the global market.
Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
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