The global Semiconductor Fabrication Materials Market is poised to grow rapidly in the coming years, with an expected market size of USD 47.2 billion in 2023. Looking ahead, experts at FMI anticipate that the market revenue could exceed USD 87.9 billion by 2033, registering a CAGR of 6.4%. The sky is the limit for this constantly evolving market since the demand for advanced electronic components continues to surge.
The demand for advanced semiconductors is likely to remain strong given the proliferation of emerging technologies like 5G. The growing emphasis on energy efficiency and sustainability is expected to create new opportunities for innovative semiconductor fabrication materials.
Key Drivers Boosting the Demand for Key Drivers Boosting the Demand for Semiconductor Fabrication Materials:
Increasing demand for electronics and semiconductor devices across various industries, such as automotive, healthcare, and aerospace
Challenges for Market Players in the Semiconductor Fabrication Materials Industry:
| Attributes | Details |
|---|---|
| Current Year Value (2023) | USD 47.2 billion |
| Expected Forecast Value (2033) | USD 87.9 billion |
| Projected CAGR (2023 to 2033) | 6.4% |
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The semiconductor fabrication materials market size was USD 44.1 billion between 2018 and 2022, where it exhibited a CAGR of 7.7%. Between 2018 and 2022, the semiconductor fabrication market share was primarily influenced by the ongoing trade war between the United States and China. The trade war caused fluctuations in the demand for semiconductor fabrication materials.
The market is expected to have significant potential prospects between 2023 and 2033 when it is projected to increase by about 1.9X. There is an increasing focus on digitalization and automation of semiconductor manufacturing processes. As demand for them continues to rise, the government and industry collaborate to increase semiconductor fabrication materials production. This is projected to positively influence the semiconductor materials market during the forecast period.
The increasing use of semiconductors in various industries is driving the adoption of semiconductor fabrication materials. Rising demand for renewable energy sources and electric vehicles is anticipated to impact the market growth. These technologies heavily rely on semiconductor devices.
Semiconductors have been crucial in modern telecommunications. They have allowed for the development of technology from narrow broadband to private packet-switched networks. Additionally, they have made 5G network technology possible. Moreover, these materials are used to produce consumer appliances that depend heavily on semiconductors. As a result, the demand for semiconductor fabrication materials has increased.
Semiconductor Fabrication Materials Market Key Trends & Opportunities
| Countries | Projected Market Value (2033) |
|---|---|
| United States | USD 18.4 billion |
| United Kingdom | USD 3.3 billion |
| China | USD 21.5 billion |
| Japan | USD 17.9 billion |
| South Korea | USD 4.7 billion |
China has emerged as a key player in the semiconductor industry in recent years. The market growth is attributed to the increasing demand for electronic devices and the growing trend of automation in various industries. The market growth in China has been largely influenced by the Made in China 2025 national strategic plan. It was implemented by the government of China to boost the semiconductor industry.
| Country | China |
|---|---|
| Historical CAGR (2018 to 2022) | 7.5% |
| Forecasted CAGR (2023 to 2033) | 6.4% |
The government has been encouraging domestic production of semiconductor chips by offering various incentives to semiconductor manufacturers. The Chinese National Intellectual Property Administration (CNIPA) has allocated a budget for 2021. The CNIPA expects to receive 2 million filings annually until 2023. As a result, China’s semiconductor fabrication materials market is expected to see a surge in demand.
Suppliers in the semiconductor industry focus on strategies such as mergers and acquisitions, partnerships, and product innovations to strengthen their market position. In February 2022, Shin-Etsu Chemical Co., Ltd. announced to implementation of over USD 593 million in facility investments in China to increase its production capacity for silicon wafers.
The United States semiconductor fabrication materials market is witnessing strong growth owing to the rising proliferation of the 5G network. Given the expanding ownership of technical equipment that supports 5G, the United States is predicted to contribute significantly to market revenue. The market is also expanding because of the commercial and military applications utilizing 5G technology.
| Country | United States |
|---|---|
| Historical CAGR (2018 to 2022) | 7.6% |
| Forecasted CAGR (2023 to 2033) | 6.3% |
The government has taken the initiative to strengthen semiconductor supply chains in the United States. It has made substantial investments in chip production. The United States Innovation and Competition Act was passed in June 2021, providing USD 52 billion to support domestic chip manufacturing.
Manufacturers in the United States are emphasizing mergers and acquisitions to strengthen their position in the market. For instance, BASF completed the acquisition of Solvay's polyamide business in January 2020. The acquisition gives BASF access to more cutting-edge polyamide products, such as Technyl®. With this acquisition, BASF can provide its clients with even better engineering plastics solutions. These solutions are particularly useful for driverless cars and electric mobility. Additionally, the deal improves its access to North and South America as well as Asia Pacific.
The Japan semiconductor fabrication materials market is driven by the increasing demand for consumer electronics. Japan is one of the leading producers of semiconductor fabrication materials globally. The advanced technological infrastructure, strong manufacturing base, growing automotive industry, and government initiatives to promote the semiconductor industry have also contributed to its market expansion.
| Country | Japan |
|---|---|
| Historical CAGR (2018 to 2022) | 7.5% |
| Forecasted CAGR (2023 to 2033) | 6.4% |
Semiconductor fabrication companies are focused on expanding their product portfolios to satisfy the increasing demand for these materials. For instance, in March 2023, FLOSFIA Inc. and JSR Corporation declared that they have created a brand-new iridium-based film deposition material together. The material is designed to be a solution for the mass production of iridium gallium oxide.
South Korea's electronics sector is crucially dependent on the production of semiconductor fabrication materials. The growth of the automotive and healthcare industries is expected to fuel the South Korea semiconductor fabrication materials market.
| Country | South Korea |
|---|---|
| Historical CAGR (2018 to 2022) | 5.5% |
| Forecasted CAGR (2023 to 2033) | South Korea |
South Korea is home to certain leading semiconductor manufacturers around the world. These semiconductor chemical companies in South Korea are focused on developing new products. For instance, Samsung Electronics unveiled the "X-Cube" or "eXtended-Cube" 3D IC packaging technology in August 2020. Through TSVs, this enables chip-stacking of SRAM dies atop a base logic die.
The demand for semiconductor chips is increasing rapidly in various industries across the United Kingdom. The use of eco-friendly materials in semiconductor manufacturing is likely to become a key trend in the market in the United Kingdom. The government is also working on developing new industrial strategies for the semiconductor industry. This is expected to further support the United Kingdom semiconductor fabrication materials market growth.
| Country | United Kingdom |
|---|---|
| Historical CAGR (2018 to 2022) | 7.4% |
| Forecasted CAGR (2023 to 2033) | 6.0% |
The country is home to certain leading semiconductor manufacturers. This makes it a key market for semiconductor fabrication materials. Key players are investing in new chip manufacturing facilities. In March 2021, Intel announced its plans to invest USD 20 billion in two new factories in the United States and Europe. This is creating new opportunities for semiconductor manufacturing material suppliers in the United Kingdom.
Principal Consultant
| Segment | Material |
|---|---|
| Top Sub-segment | Photoresists |
| Historical CAGR (2018 to 2022) | 7.5% |
| Forecasted CAGR (2023 to 2033) | 6.2% |
| Segment | Application |
|---|---|
| Top Sub-segment | Memory |
| Historical CAGR (2018 to 2022) | 7.4% |
| Forecasted CAGR (2023 to 2033) | 6.1% |
The photoresist material segment holds a dominant position in the market since these materials are crucial components in the semiconductor fabrication process. These materials are sensitive to light. Therefore, these are used in the transfer of the design of an integrated circuit. The transfer process takes place on the surface of the wafer. The increasing demand for smaller, more precise, and more complex electronic devices is another reason behind this dominance. The use of photoresist materials is essential in achieving this level of precision.
Photoresist material manufacturers are continuously investing in research and development to improve the worth of their products. For instance, L.G. Chem began developing photoresist materials for use in the back-end processes of semiconductor manufacturing in May 2022. The aim is to supply these materials to semiconductor businesses worldwide. The company's focus is on improving chip performance. These materials are utilized following the ultra-fine circuit engraving process in the front-end procedure of semiconductors.
The memory application segment rules the global market primarily because of the rising demand for memory chips. The demand is increasing rapidly given the growing usage of electronic devices. These devices require memory chips to store and retrieve data efficiently. The demand for integrated circuits and memory chips is rising. The growing usage of semiconductors in electrical and automotive systems is the reason behind this demand. The semiconductor industry is becoming increasingly digitized. Cutting-edge products now include memory-based components. As a result, the semiconductor memory market has tremendous development potential.
Start-ups in the market are developing innovative materials and processes to improve the performance, efficiency, and cost-effectiveness of semiconductor manufacturing.
| Start-up | Impact Nano |
|---|---|
| Profile | The startup specializes in chip materials. The company's manufacturing abilities are centered on developing cutting-edge materials. The startup also focuses on scaling up up-to-date technologies to make them commercially available. |
| Recent Developments | In March 2023, Impact Nano disclosed that it secured USD 32 million in investment from stakeholders, including Goldman Sachs Asset Management and Intel Capital. |
| Start-up | Inpria |
|---|---|
| Profile | It is developing a new type of photoresist that is used to pattern semiconductor wafers. Inpria's photoresist is designed to improve resolution and reduce defects. These help semiconductor manufacturers produce smaller and more complex chips. |
| Recent Developments | In August 2022, JSR Corporation announced that it is expediting its joint development with SK Hynix Inc. to implement Inpria's Extreme Ultraviolet metal oxide resist in the production of pioneering DRAM chips. |
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Market players are implementing various strategies to maintain or gain a competitive edge in the industry. These strategies include:
Product Development: Companies are constantly investing in research and development to introduce new and innovative products that meet the demands of customers.
For instance, in December 2022, DuPont unveiled a new photo-imageable dielectric (PID) dry film material. This material has the potential to be used in sophisticated semiconductor packaging applications. This new material is an up-to-date addition to the expanding family of CYCLOTENETM advanced electronics resins.
Strategic Partnerships: Market players are also partnering with other companies in the industry to enhance their product offerings and expand their reach.
For instance, BASF, Zhejiang Jiahua Energy Chemical Industry Co. Ltd., and its subordinate Zhejiang Jiafu New Material Technology signed a contract to intensify electronic-grade sulfuric acid production in Jiaxing, China in July 2021. The aim is to meet the growing demand from China's semiconductor industry.
Mergers and Acquisitions: Manufacturers are acquiring or merging with other companies to gain a larger market share, and access new technologies or markets.
For example, In February 2022, AGC Inc. acquired Novel Crystal Technology, a manufacturer of next-generation power semiconductor materials. Their electronic components known as "power semiconductors" are used to regulate electricity.
Geographic Expansion: Market players are expanding their geographical presence to tap into new markets and increase their customer base.
For example, In May 2022, Ferrotec Holdings Corporation announced that it had selected Kulim Hi-Tech Park in Kedah as the site for its new production plant. The Malaysian Investment Development Authority (MIDA) facilitated the construction of this facility. It is designed to produce sophisticated materials and perform electromechanical assembly for semiconductor equipment.
Increasing Production Facility: Expanding production capacity is another strategy market players use to gain a competitive advantage.
For instance, In October 2019, Air Liquide announced the construction of three facilities in Taiwan to supply significant volumes of ultra-high purity industrial materials to two of the world's key semiconductor manufacturers.
The market is valued at USD 47.2 billion in 2023.
BASF SE, DuPont de Nemours, Inc., and Honeywell International, Inc. are key market players.
The market is forecast to register a CAGR of 6.4% through 2033.
From 2018 to 2022, the market registered a CAGR of 7.7%.
Growing demand for advanced packaging materials is encouraging the market growth.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2023 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2023 and Forecast 2023 to 2033, By Materials 5.1. Chemicals 5.2. Gases 5.3. Metals 5.4. Photoresists 6. Global Market Analysis 2018 to 2023 and Forecast 2023 to 2033, By Fabrication process 6.1. Wafer Fabrication 6.2. Assembly 6.3. Packaging 6.4. Testing 7. Global Market Analysis 2018 to 2023 and Forecast 2023 to 2033, By Technology node 7.1. Nanometers (nm) 7.2. Micrometers (µm) 8. Global Market Analysis 2018 to 2023 and Forecast 2023 to 2033, By Application 8.1. Memory 8.2. Logic 8.3. Optoelectronics 8.4. Sensors 8.5. Power Electronics 9. Global Market Analysis 2018 to 2023 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. Asia Pacific 9.5. MEA 10. North America Market Analysis 2018 to 2023 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2023 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2018 to 2023 and Forecast 2023 to 2033, By Country 13. Asia Pacific Market Analysis 2018 to 2023 and Forecast 2023 to 2033, By Country 14. MEA Market Analysis 2018 to 2023 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. BASF SE 17.2. DuPont de Nemours, Inc. 17.3. Honeywell International Inc. 17.4. AGC Inc. 17.5. Ferro Corporation 17.6. Air Liquide SA 17.7. FUJIFILM Holdings Corporation 17.8. Avantor Inc. 17.9. Entegris, Inc. 17.10. Inpria Corporation 18. Assumptions & Acronyms Used 19. Research Methodology
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Semiconductor Fabrication Materials Market
