The global sales of semiconductor wafer is estimated to be worth USD 23.3 billion in 2024 and anticipated to reach a value of USD 36.3 billion by 2034. Sales are projected to rise at a CAGR of 4.5% over the forecast period between 2024 and 2034. The revenue generated by semiconductor wafer in 2023 was USD 22.4 billion. The industry is anticipated to exhibit a Y-o-Y growth of 4.4% in 2024.
The semiconductor wafer is a thin and small slice of material, like silicon, used as the foundation for making ICs and other micro devices. These wafers are essential in the electronics industry as they are the foundation for building chipsets. These chipsets power our modern gadgets and technologies.
The microchips are created through processes like doping, etching, and deposition on the wafer, supporting the growth of semiconductor wafer market.
Semiconductor wafers provides high purity and consistency improves performance of electronic components. They allow circuits to be made smaller, so more components can fit into a compact space. This is crucial for contemporary electronics industry. Wafers also allow the production of several devices on one substrate. This improves manufacturing competence and helps lower costs, supporting the industry trend.
Semiconductors are integral part in various sectors. This includes sectors like automotive, consumer electronics, and telecom. For instance, in consumer electronics, they are core of various everyday devices such as smartphones, laptops, and others. Further, in automotive industry, wafers are integrated part of majority of vehicle components.
This include battery management system, advanced driver assistance systems (ADAS), and Infotainment Systems. Such a diverse usage of the wafers is diving the semiconductor wafers market growth worldwide.
Global Semiconductor Wafer Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 22.4 billion |
| Estimated Size, 2024 | USD 23.3 billion |
| Projected Size, 2034 | USD 36.3 billion |
| Value-based CAGR (2024 to 2034) | 6.2% |
Various country’s government across the globe are taking supportive initiatives for semiconductor industry. This can be attributed to high emphasis on digitization efforts. Governments are investing in semiconductor projects to promote innovations in electronics industry. These initiatives are creating demand for semiconductors, subsequently propelling the growth of semiconductor wafer market.
For instance, in July 2024, government of Canada invested around USD 90 million into Fabrication of Integrated Components for the Internet’s Edge (FABrIC) network. This FABrIC is led by CMC Microsystems, a not-for-profit research organization.
The investment was made under government program, Innovation, Science and Economic Development Canada (ISED). These investment is intended to support invention in semiconductor manufacturing and develop a highly skilled talent pool in Canada.
Moreover, the countries worldwide are establishing strategic partnerships with each other to improve the semiconductor sector. For instance, in May 2024, Brazil and Malaysia made an agreement between both countries in strengthening the semiconductor sector & related technology expertise.
It’s a collaboration of Brazil’s Ministry of Development, Industry, Commerce & Services and Malaysia’s Ministry of Investment, Trade & Industry (MITI).
These nations will utilize their respective development plans to augment cooperation in the semiconductor industry. The plan includes New Industrial Master Plan (NIMP 2030) by Malaysia and Nova Industria Brazil 2033.
The Malaysian government has announced that it will allocate at least USD 5.3 billion in fiscal support to operationalize the National Semiconductor Strategy (NSS) in its first phase. This si expected to propel the semiconductor wafer market growth in both countries in projected timeframe.
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The below table presents the anticipated CAGR for the global semiconductor wafer market over several semi-annual periods spanning from 2024 to 2034. This assessment outlines changes in the semiconductor wafer industry and identify revenue trends, offering key decision makers an understanding about market performance throughout the year.
H1 represents first half of the year from January to June, H2 spans from July to December, which is the second half. In the first half (H1) of the year from 2023 to 2033, the business is predicted to surge at a CAGR of 4.2%, followed by a slightly higher growth rate of 4.9% in the second half (H2) of the same year.
| Particular | Value CAGR |
|---|---|
| H1, 2023 | 4.2% (2023 to 2033) |
| H2, 2023 | 4.9% (2023 to 2033) |
| H1, 2024 | 3.8% (2024 to 2034) |
| H2, 2024 | 5.0% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 3.8% in the first half and remain higher at 5.0% in the second half. In the first half (H1) the market witnessed decrease of 40 BPS while in the second half (H2), the market witnessed an increase of 10 BPS.
Vendors are Transitioning into Production for Larger Wafers is an Upward Trend
Transition to larger semiconductor wafers is a notable trend driven by various factors. Larger wafers such as 300mm and beyond offers cost-effectiveness and increased efficiency. This makes them preferred over smaller ones like 200 mm. Manufactures can produce more chips per wafer with larger wafers.
This assists in manufacturing cost reduction per unit with higher yields. This is crucial in meeting growing semiconductors demand from multiple industries, thereby supporting the semiconductor wafer market expansion.
Moreover, larger wafers enable fabrication of closely packed and tiny chips. This enables the development of latest technologies such as 5G, and Internet-of-Things (IoT). This technologies are growing continuously due to which demand for semiconductor devices is also increasing. Manufactures emphasize on strengthening their manufacturing capabilities to increase production of larger wafers.
For instance, in July 2024, USA Commerce Department announced to provide USD 400 million grant to Globalwafers Co. Ltd. The company will utilize this funding construct USA first 300-mm wafers manufacturing facility in Texas and Missouri. With this investment, USA government aims to augment country’s semiconductor industry amid global supply chain challenges. This will create around 880 manufacturing jobs in the region.
Surge in Automotive Electronics is Driving Growth of the Semiconductor Wafer Market
The automotive industry’s is witnessing fast progress like emergence of autonomous driving technologies, and electric vehicles (EVs). This transformation is reshaping vehicles into digital platforms that depends remarkably on semiconductor industry. Such a transformation is driving the growth of semiconductor wafer market notably in automotive industry.
EVs requires developed semiconductor devices for electric drivetrains, battery systems, and power management. Further, automobile companies are investing notably in electrification of their vehicles. This move is intended to meet the regulatory requirements and cater the consumer demand for sustainable transportation. This is creating favorable environment for semiconductor wafer market.
Autonomous driving technologies are fundamental for supporting ADAS and autonomous vehicle functionalities. High-performance semiconductor wafers are crucial for development of these autonomous driving components due to their various benefits. This includes necessary computing power, low energy consumption, and integrated sensors networks.
Additionally, the incorporation of progressive features such as vehicle-to-everything (V2X) communication and telematics further drives semiconductor wafer market growth.
Market players are focusing on accelerating semiconductors production for automotive sector. For instance, in June 2024, Vanguard International Semiconductor Corporation (VIS) and NXP Semiconductors announced to invest US 7.8 billion in Singapore for semiconductor manufacturing plant.
The plant will produce hardware for the industrial and automotive sector. This move strengthens Singapore's role in the global semiconductor market. It also boosts the automotive industry's shift toward more advanced technology in vehicles.
Advancements in 5G Technologies is creating Opportunities for Semiconductor Wafer Market
Remarkable progress in 5G technologies in telecommunications sector is fueling the industry growth. This technology delivers faster speeds, lower latency, and ability to connect a many number of devices. To accomplish this, 5G devices must have semiconductors that can operate at higher frequencies and process data more quickly.
The companies developed silicon carbide (SiC) and gallium nitride (GaN) semiconductor wafers to develop advance semiconductor devices. These materials are perfect for 5G devices because of their high frequency and high power handling ability.
One of the important opportunities is production of wafers for 5G base stations and network equipment. These components require semiconductors capable of processing massive amounts of data with minimal latency. This makes them reliant on on wafers that provides greater consistency and performance. The telecom companies are expanding their 5G services globally.
This has driving the demand for specialized wafers, driving the growth in the semiconductor wafer market.
Technological Complexity and Environmental Concerns may Restrict Semiconductor Wafer Market Growth
Technological difficulty is a major challenge in the semiconductor wafer market. The challenge is driven by the need for smaller, faster, and more effective chips. Wafer production process becomes complicated with the progression in semiconductor devices.
As they requires precise control over numerous methods, such as lithography, etching, and deposition. The shift towards smaller node sizes, like 5nm and below, adds to the complexity. These demands advanced equipment and knowledge to maintain high yield rates and guarantee defect-free wafers.
Moreover, environmental concerns related to wafer manufacturing process are another restraints in market. The manufacturing process is requires high amounts of electricity. Since majority of this electricity comes from non-renewable resources, carbon emissions are increased.
Furthermore, using dangerous chemicals like acids, solvents, and gases puts people's health at danger. Governments of various countries are taking initiatives to draft strict environmental regulations. This is forcing market players to adopt green practices such as reducing energy consumption, and minimizing waste which can add to production costs.
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The global semiconductor wafer market recorded a CAGR of 3.3% during the historical period between 2019 and 2023. The growth of semiconductor wafer industry was positive as it reached a value of USD 22.4 billion in 2023 from USD 18.9 billion in 2019.
Semiconductor wafer market witnessed stable growth from 2019 to 2023. This attributed to increased demand for electronic devices, and expansion of evolving industries like EVs, and 5G. The international market saw reasonable growth, with key players aiming on research and development of advance wafer production technologies.
An outbreak of Corona virus in 2020 impacted the expansion of the semiconductor wafer market. Their was sharp decline in wafer demand in 2020 due to lockdown measure and travel restrictions enforced by most of countries. However, this pandemic also augmented the digital transformation across multiple industries.
These led to notable rise in demand for semiconductor devices mainly in data centers, cloud computing, and home electronics. The semiconductor wafer market saw a remarkable growth. This can be credited to companies’ strategies to speed up wafer production to stay competitive in the market.
Post pandemic, semiconductor wafer market continued its high growth owing to rising adoption of 5G technologies and EV sales. The global chip shortage appeared as a important issue in 2021, highlighting the important role of semiconductor wafers. This shortage spurred increased investments in wafer production capacity. These investments further boosted semiconductor wafer market growth.
Tier 1 companies comprise market players capturing remarkable market share of 55% to 60% in global semiconductor wafer market. Thee market players have established extensive sales & dealer and client network across the globe. These companies actively invests in R&D to innovate new competencies to stay ahead of other market players.
Key companies in this tier are Shin-Etsu Chemical Co., Ltd., SUMCO CORPORATION, Globalwafers Co. Ltd, Siltronic, and SK Siltron.
Tier 2 companies may not have extensive global reach and client bases as compared to tier 1 companies. However, these companies possess great knowledge regarding the local market. They develop the product that addresses the evolving market needs and adopts business strategies to establish unique brand image.
These market parleys mainly partners with technology providers to optimize their R&D costs. Prominent players in tier 2 includes Okmetic, Wafer Works Corporation, LONGi Green Energy Technology Co., Ltd., and SOITEC.
Tier 3 companies mainly incudes emerging and small-sized enterprises. This players lacks extensive resources as compared to tier 1 and tier 2 players. However, these companies may adapt to new market trend quickly. These market players emphasize on developing solutions that address specific industry needs. Their target audience is the companies that seeks cost-effective but innovative solutions.
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The section below covers the industry analysis for the semiconductor wafer market for different countries. Market demand analysis on key countries in several regions of the globe, including the USA, India, China, UK, and Germany is provided. USA is anticipated to remain at the forefront in North America, with a value share of 72.3% through 2024. In East Asia Pacific, South Korea is projected to witness a CAGR of 3.6% by 2034.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 4.3% |
| Germany | 4.4% |
| China | 4.6% |
| India | 7.6% |
| UK | 5.2% |
The USA currently holds around 72.3% share of the North America semiconductor wafer market. USA is likely to continue its dominance in North America through 2034. USA market is anticipated to grow at a CAGR of 4.3% throughout the forecast period.
In 2023, as per Semiconductor Industry Association (SIA), USA held nearly 40% of share in semiconductor industry across the globe. The consumer preference for smart appliances is increasing in the country.
The growing demand for smart appliances is encouraging consumer electronics market players to invest in expanding their manufacturing capabilities in region. These appliances depends on semiconductor wafers for producing ICs to power functionalities and improve performance.
China’s semiconductor wafer market is poised to exhibit a CAGR of 4.6% between 2024 and 2034. Currently, the country holds the highest market share in the East Asia market. This trend is expected to continue by 2034.
Market players’ focus on inventing new technologies to accelerate digitization is driving semiconductor wafer market growth in China. As per Information Technology & Innovation Foundation, in 2022, around 55% of patent related to semiconductor industry were from China.
The regional semiconductor companies are focusing on developing semiconductor wafer technologies to enhance the flexibility and operational efficiency of the semiconductor devices. Furthermore, rise in smart factory construction in country is fueling the expansion of semiconductor wafer market.
India’s semiconductor wafer market is expected to grow at a CAGR of 7.6% between 2024 and 2034. Currently, it holds the remarkable market share in the South Asia & Pacific market.
Government of India is considerably investing in semiconductor industry to propel the growth of economy and reduce dependency on foreign technology. For instance, in February 2024, Indian government invested around USD 15 billion to construct three semiconductor plant in country.
The new semiconductor fab is likely to have a capacity of 50,000 wafer starts per month. It will emphasis on producing mature chips, especially those using 40-nanometer technology or older.
The section contains information about the leading segments in the industry. By process node, the 7nm segment is estimated to grow at a CAGR of 5.8% throughout 2034. Additionally, the by application, automotive segment is projected to expand at 5.5% till 2034.
| Process Node | 3nm |
|---|---|
| Value Share (2024) | 15.6% |
3nm segment is expected to acquire share of 15.6% in the market in terms of process node in 2024. The growing high-performance computing devices in datacenters and IT sectors is driving the segment growth. Chips manufactured using 3nm technology provides better performance and reduced power consumption as compared to 5nm technology. This efficiency is achieved by reducing the size of transistors, enabling more transistors to be installed on chip area.
| Application | Consumer Electronics |
|---|---|
| Value Share (2024) | 30.1% |
The consumer electronics segment is poised to capture share 30.1% in 2024. Emergence of remote controlled consumer electronics devices and significant penetration of smartphones & laptops is propelling segment growth.
Smart home devices, including smart speakers, security systems, and home automation products, also rely heavily on semiconductor wafers. These devices use ICs for various functions such as processing commands, managing connectivity, and running applications.
Key players operating in the semiconductor wafer market are investing in advanced technologies and also entering into partnerships. Key semiconductor wafer providers have also been acquiring smaller players to grow their presence to further penetrate the market across multiple regions.
Recent Industry Developments in Semiconductor Wafer Market
In terms of process node, the industry is divided into 3nm, 5nm, 7nm, 8nm, 10nm, 16nm, 20nm, 28nm, 40nm, and other nodes.
The industry is classified by application as automotive, consumer electronics, industrial manufacturing, telecommunications, and other applications.
Key countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe, and Middle East & Africa (MEA) have been covered in the report.
The global semiconductor wafer industry is projected to witness CAGR of 6.2% between 2024 and 2034.
The global semiconductor wafer industry stood at USD 22.4 billion in 2023.
The global semiconductor wafer industry is anticipated to reach USD 36.3 billion by 2034 end.
South Asia & Pacific is set to record the highest CAGR of 6.2% in the assessment period.
The key players operating in the global semiconductor wafer industry include Shin-Etsu Chemical Co., Ltd., SUMCO CORPORATION, Globalwafers Co. Ltd, Siltronic, and SK Siltron.
1. Executive Summary
2. End User Introduction, including Taxonomy and Market Definition
3. Market Trends and Success Factors, including Macro-Economic Factors, Market Dynamics, and Recent End User Developments
4. Pricing Analysis, By Vendors
5. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections
6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Process Node
6.1. 3nm
6.2. 5nm
6.3. 7nm
6.4. 8nm
6.5. 10nm
6.6. 16nm
6.7. 20nm
6.8. 28nm
6.9. 40nm
6.10. Other Nodes
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application
7.1. Automotive
7.2. Consumer Electronics
7.3. Industrial Manufacturing
7.4. Telecommunications
7.5. Other Applications
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
8.1. North America
8.2. Latin America
8.3. East Asia
8.4. South Asia Pacific
8.5. Western Europe
8.6. Eastern Europe
8.7. Middle East and Africa
9. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
10. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
11. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
12. South Asia & Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
14. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
15. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
16. Sales Forecast 2024 to 2034 by Process Node, Application, for 30 Countries
17. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
18. Company Profile
18.1. Shin-Etsu Chemical Co., Ltd.
18.2. SUMCO CORPORATION
18.3. Globalwafers Co. Ltd
18.4. Siltronic
18.5. SK Siltron
18.6. Okmetic
18.7. Wafer Works Corporation
18.8. LONGi Green Energy Technology Co., Ltd.
18.9. Samsung
18.10. SOITEC
18.11. Wafer World Inc.
18.12. Fujimi Incorporated
18.13. SIEGERT WAFER GmbH
18.14. Virginia Semiconductor, Inc.
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Semiconductor Wafer Market
