Semiconductor Fabrication Materials Market Report

Market Highlights

Semiconductor fabrication, often referred to as semiconductor manufacturing or simply "fab," is the process of creating semiconductor products on silicon wafers. This highly complex and precise manufacturing process is fundamental to the production of electronic devices and microchips used in various applications across multiple industries. Semiconductor wafer fabrication is at the heart of consumer electronics, including smartphones, tablets, laptops, smart TVs, gaming consoles, digital cameras, etc. It enables the production of advanced microchips and processors that power these devices, offering enhanced performance and functionality.

The evolution of semiconductor fabrication has been motivated by the pursuit of smaller, swifter, and more effective electronic devices. This progress has been made possible by the adoption of advanced photolithography methods, such as immersion lithography and extreme ultraviolet (EUV) lithography, which have allowed for the generation of finer and more intricate patterns on wafers. Furthermore, semiconductor manufacturers persist in challenging technological limits through the creation of advanced nodes, such as 7nm, 5nm, and below.

The COVID-19 pandemic has created a significant downturn in the semiconductor industry during the first half of 2020. However, soon digitalization trend started in the market which resulted in strong chip sales during 2021 and 2022 with major industry stakeholders announcing to ramp up the production capacity of chips to meet the growing demand. Also, the demand for CMP slurry in consumer electronic devices has supplemented the market growth. But from the second half of the year 2022, the market has again experienced a downward trend, due to a host of factors, such as rising inflation, geopolitical tension, and lingering effects of the pandemic. However, the long-term growth of the market is not likely to be affected by the current trend. The long-term demand will be boosted by the continuous growth demand for chips to make the world smarter, more efficient, and more advanced. Additionally, the demand for CMP slurry in consumer electronic devices and the increasing demand for 300mm wafers in semiconductor production is fueling the market growth. Overall, the semiconductor fabrication materials market is expected to grow at a promising CAGR of 7.2% in the long run to reach US$ 59.7 Billion by 2028.

Some of the most Recent Product Developments are:

• In February 2023, Applied Materials introduced a novel patterning system, Centura® Sculpta®, which offers a more straightforward, quicker, and cost-efficient option compared to EUV double patterning. This technology enables semiconductor manufacturers to produce high-performance transistors and interconnect wiring using fewer EUV lithography steps, resulting in reduced costs, simplified processes, and a decreased environmental footprint in advanced chip production.
• In 2020, Taiwan Semiconductor Manufacturing Company Limited innovated the world's first eco-friendly dry-cleaning method for EUV masks, to substitute the conventional cleaning process.

Some of the most Recent Market JVs and Acquisitions are:

Over the past few years, there have been a fair number of strategic alliances, including M&As, JVs, etc., across the globe. Some of them have been mentioned below:

• In February 2022, AGC, Inc. completed the acquisition of Novel Crystal Technology, a company specializing in advanced power semiconductor materials. These electronic components, referred to as "power semiconductors," play a crucial role in controlling and regulating electrical power.
• In July 2021, BASF, along with Zhejiang Jiahua Energy Chemical Industry Co. Ltd. and its subsidiary Zhejiang Jiafu New Materials Technology, entered into an agreement to enhance the production capacity of electronic-grade sulfuric acid in Jiaxing, China. The objective is to fulfill the increasing needs of China's semiconductor industry players.
• In March 2020, SK Siltron, a South Korea-based company operating in semiconductor fabrication materials such as silicon wafers, acquired DuPont's SiC Wafer Division. With this acquisition, the company aims to expand its product portfolio and production capabilities of silicon wafers in the USA.

Segments Analysis

Based on the material type, the semiconductor fabrication materials market is segmented into silicon wafers, photoresists, photoresist ancillaries, photomasks, electronic grade gases, wet chemicals, CMP slurry & pads, PVD targets, and others. Among them, silicon wafer materials are expected to remain the largest as well as the fastest-growing material type in the market during the forecast period. Silicon wafer remains the core component of many microelectronic devices and forms the cornerstone of the electronics industry. With digitization and electronic mobility being the current trends in the technology landscape, these products are finding applications in many devices. Also, the growing demand for semiconductor chips is fueling the growth of the market.

Based on application type, the market is segmented into DAO (Discrete, Analog, and Optoelectronics & Sensors), memory, and logic. Logic devices are projected to remain the dominant application of the market during the forecast period. The rising adoption of logic semiconductors for broadband applications and broadband-enabled devices, along with the emergence of economies like China and India, are poised to generate fresh prospects in the global logic semiconductors market. Nevertheless, challenges such as the elevated cost of product revisions and the advancement of System-in-Package (SiP) packaging are notable constraints facing the global logic semiconductors market.

Based on the end-use type, the market is segmented into communication, computer, consumer electronics, industrial, automotive, and government. Among them, the computer segment is expected to remain the largest end-user in the market by 2028, due to advancements in communication technology and related infrastructure. However, automotive, industrial, and consumer electronics segments are expected to generate healthy growth opportunities with the incessant rise in demand for semiconductor chips.

In terms of regions, Asia-Pacific is expected to remain the largest as well as the fastest-growing market for semiconductor fabrication materials during the forecast period. Several leading players are based in the major and fastest-growing market to leverage its full potential. Shin-Etsu Chemical (based in Japan) one of the leading players in the market, produces a wide range of silicon wafers for the semiconductor industry. GlobalWafers, based in Taiwan, is another leading silicon wafer manufacturer that supplies wafers to semiconductor companies worldwide.

Segmentation:

The semiconductor fabrication materials market is segmented into the following categories:

Semiconductor Fabrication Materials Market, by Type

• Silicon Wafers (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Photoresist (Regional Analysis: North America, Europe, Asia-Pacific, and RoW) 
• Photoresist Ancillaries (Regional Analysis: North America, Europe, Asia-Pacific, and RoW) 
• Photomask (Regional Analysis: North America, Europe, Asia-Pacific, and RoW) 
• Electric Grade Gases (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Wet Chemicals (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• CMP Slurry and Pad (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• PVD Targets (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Others (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)

Semiconductor Fabrication Materials Market, by End-Use Type

• Communication (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Computer (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Consumer Electronics (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Industrial (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Automotive (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Government (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)

Semiconductor Fabrication Materials Market, by Region

• North America (Country Analysis: The USA and The Rest of North America)
• Europe (Country Analysis: Germany, The UK, The Netherlands, Austria, and The Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, South Korea, Taiwan, and The Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)

Key Players

The market is highly populated, with the presence of several local, regional, and global players. Most of the major players have diverse product portfolios, to cater to various end-use applications. The following are the key players in the semiconductor fabrication materials market.

• Shin-Etsu Chemical Co., Ltd.
• Merck KGaA
• DuPont de Nemours, Inc.
• Silktronic AG
• Air Liquide S.A.
• JSR Corporation
• Toppan Printing Co., Ltd.
• Honeywell International, Inc.
• BASF SE
• Avantor, Inc.

Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s semiconductor fabrication materials market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.

We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Product portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve.
• Attractive market segments and associated growth opportunities
• Emerging trends
• Strategic growth opportunities for existing and new players
• Key success factors

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

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