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According to the latest market research report on the Global Semiconductor Fabrication Material Market, published by IndustryARC, Materials like silicon wafers, wet chemicals, industrial gases, chemical mechanical polishing (CMP) slurries and pads, photomasks, sputter targets, photoresists for semiconductors, photoresists for EUV, electrostatic chucks, IC lead frames, and others are commonly used in semiconductor fabrication. The increasing adoption of digitally integrated circuits (ICs) across industries such as automotive, communications, and electrical and electronics is a major factor driving the demand for semiconductor fabrication materials.
The Global Semiconductor Fabrication Material Market research report is segmented By Material Type: Wet Chemicals, Silicon Wafers, Industrial Gases, Chemical Mechanical Polishing (CMP) Surry and Pads, Photomasks, Sputter Targets, Photoresists for Semiconductors, Photoresists for EUV, Electrostatic Chucks, IC Lead Frame, Wire Bonding, and Others; By Semiconductor Type: N-Type, p-Type; By Application: Consumer Appliances, Power Generation, Electronic Components, Others; By End Use Industry: Telecommunication, Energy, Electrical and Electronics, Medical and Healthcare, Automotive, Defence & Aerospace, and Others; By Manufacturing Process: Deposition, Lithography, Etching, Doping & Ion Implantation, Cleaning, Others; By Geography: North America, Europe, Asia Pacific, South America, and RoW which provides a comprehensive analysis of the global market & industry forecast (2025 - 2030).
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Asia Pacific Anticipated to Show the Fastest Growth in the Market:
Asia Pacific is projected to have the fastest growth rate in the Global Semiconductor Fabrication Material market, at 7.6% CAGR between 2025 and 2030, Key countries such as China, Taiwan, South Korea, Japan, and Singapore house some of the largest semiconductor manufacturers in the world, including companies like TSMC (Taiwan Semiconductor Manufacturing Company), Samsung Electronics, and Intel. These countries are investing heavily in semiconductor fabrication, leading to increased demand for high-quality materials.
For instance, China's semiconductor sector has grown to become one of the largest globally, also positioning China as the largest consumer of chips. The country is expected to continue expanding its semiconductor industry through substantial investments. According to the Semiconductor Industry Association, China’s semiconductor industry is estimated to invest $12.3 billion in 2021 and $15.3 billion in 2022, contributing about 15% of the global capital expenditure (CAPEX) for semiconductors. China's semiconductor sector is expected to double its installed wafer capacity over the next decade, reaching 19% of the global installed chip capacity. Additionally, more than 22,800 new semiconductor companies were established in China in 2020, marking a 195% increase from 2019, which will significantly contribute to the growing demand for semiconductor fabrication materials.
Global Semiconductor Fabrication Material Market 2024-2030: Scope of the Report
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Global Semiconductor Fabrication Material Market Report – Key Takeaways:
- The Silicon Wafers are Leading the Market
The Silicon Wafers led the market in 2024. Silicon wafers are the basic building blocks of semiconductors which are essential components of all electronics including computers, telecommunications equipment, and consumer electronics. The highly designed thin discs which can be up to 12 inches in diameter, are used as the substrate material for most semiconductor devices or chips. To meet the growing demand for semiconductors, especially in consumer electronics, automotive, and industrial applications, there is a significant increase in investment in new fabrication plants (fabs) and capacity expansions. This trend is driving higher demand for silicon wafers, particularly in regions like East Asia and North America, where most of the new fabs are being constructed.
For instance, South Korea's plan to invest $471 billion by 2047 to build 16 new fabs in Gyeonggi Province, alongside new investments in fabs by Chinese companies in Shenzhen, Tianjin, and Shanghai, underscores the aggressive expansion of semiconductor manufacturing capacity in Asia. The construction of new fabs directly correlates with a surge in demand for silicon wafers, as these facilities will require a continuous supply of wafers to produce semiconductors. Increasing acquisitions by major players as their growth strategy has positively impacted the silicon wafers demand growth in recent years. For example, in March 2021, GlobalWafers purchased a 70.27% share in its rival, Siltronic AG.
Electrical and Electronics Dominate The Market Share
The Electrical and electronics in the Global Semiconductor Fabrication Material market is anticipated to hold a major share with a CAGR of 7.5% during the forecast period (2025-2030). Semiconductor fabrication materials are essential in the production of various electronic devices, such as diodes, transistors, temperature control chips, timers, automated systems, and integrated circuits. India has emerged as a key manufacturing hub, with its domestic electronics output rising from $29 billion in 2014–15 to $101 billion in 2022–2023, as reported by IBEF. The electronics sector now contributes approximately 3.4% to India's GDP. Over the past six years, the Indian government has invested approximately $17 billion in four Production-Linked Incentive (PLI) Schemes: Semiconductor and Design, Smartphones, IT Hardware, and Components. According to the IPC Economic Outlook December 2021, the electronics sector, which includes components, loaded boards, computers, communications equipment, and consumer electronics, grew by 2.6% in November 2021. Sales in the electrical and electronics sector have risen by 30.6% since 2019, with a 12.8% growth observed between 2019 and 2021.
As per Invest India, the global electronics market was valued at over $2 trillion in 2019. India’s share of global electronics manufacturing grew from 1.3% in 2012 to 3.6% in 2019, driven largely by its position as the second-largest mobile manufacturer globally. India's electronics manufacturing industry is forecast to generate $300 billion in revenue by 2025-2026, while the overall electronics market is expected to reach $400 billion by 2025.This growing sector will undoubtedly contribute to the rising demand for semiconductor fabrication materials during the forecast period.
Increasing Government Initiatives For New Semiconductor Production Units
Government initiatives play a critical role in advancing the semiconductor sector, helping to boost both market demand and global market share. For example, the U.S. government has made substantial investments to strengthen domestic semiconductor supply chains. In June 2021, the United States Innovation and Competition Act (USICA) was enacted, dedicating $52 billion to support domestic chip manufacturing, research, and design.
For instance, in August 2024, the Semiconductor Industry Association, praised the U.S. Commerce Department and Texas Instruments (TI) for semiconductor manufacturing incentives, including up to $1.6 billion in direct funding via the CHIPS and Science Act to support three 300mm semiconductor wafer fabs under construction in Texas and Utah.
The Japanese government has also ramped up efforts to help domestic semiconductor companies expand globally, with plans to increase the industry’s annual revenue to more than $114 billion by 2030. In 2022 and 2023, the Japanese government provided 330 billion yen ($2.3 billion) in financial support for the Rapidus project, a next-generation semiconductor mass-production center developed in collaboration with IBM and IMEC. The goal is to begin producing 2-nanometer semiconductors by 2027.
In May 2024, South Korea's government, under Finance Minister Choi Sang-mok, announced a $7 billion support package aimed at advancing the country’s semiconductor sector. By August 2024, South Korea revealed an even more ambitious support plan worth 26 trillion won ($19 billion), emphasizing its commitment to remaining competitive in the global semiconductor industry, amidst what is referred to as “all-out warfare” in the sector. These initiatives underscore the government's focus on maintaining a competitive edge in the market while also enhancing energy efficiency and sustainability, driving the demand for semiconductor fabrication materials
Growing Environmental Concerns To Restrain Market Growth
A typical semiconductor facility produces about 2 million integrated circuits each month, consuming over 20 million gallons of water. As part of the production process, industrial wastewater must eventually be discharged. Additionally, wafer manufacturers use numerous hazardous chemicals, which pose significant environmental risks. Consequently, manufacturers are facing mounting pressure and criticism from authorities and environmental groups, which is expected to limit the growth potential of the semiconductor fabrication materials market globally.
Environmental challenges are also exacerbated by high-frequency limitations. High-frequency applications demand precise and reliable manufacturing processes, where even small adjustments in factors like doping concentration, oxide thickness, or etching depth can significantly affect performance. Heat dissipation is a primary challenge for high-frequency devices. As frequency and power densities rise, effective thermal management becomes crucial to prevent device degradation or failure.
While the semiconductor industry grapples with sustainability issues, it is taking steps to mitigate its environmental impact. As awareness of climate change increases, the carbon footprint of semiconductor manufacturing processes is under closer scrutiny. For instance, STMicroelectronics' 2023 Sustainability Report highlights the company's efforts to achieve carbon neutrality by 2027. In 2022, global sourcing of renewable electricity grew to 62%, up from 51% in 2021. However, transitioning to renewable energy sources presents challenges, particularly the high cost of solar energy. To reduce these costs, the semiconductor sector will need to invest in further research and development.
Additionally, regulatory changes present a challenge to the semiconductor industry, which is governed by multiple authorities. New regulations may be needed to ensure the industry's long-term sustainability, addressing issues such as environmental impact, energy consumption, and other critical areas.
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Key Opportunity Analysis:
- The Surge in 200mm Fab Capacity
The rapid expansion of 200mm fab capacity is creating significant opportunities for the semiconductor fabrication materials market. As the demand for semiconductor production intensifies, there is a pressing need for a robust and responsive supply chain for the materials required in manufacturing. This provides material suppliers with an opportunity to form stronger, long-term partnerships with foundries and OEMs, ensuring a reliable supply of critical materials.
According to the SEMI 200mm Fab Outlook to 2026 report, semiconductor manufacturers are expected to increase 200mm fab capacity by 14% between 2023 and 2026, adding 13 new 200mm volume fabs (excluding EPI). This surge in capacity will bring the industry to a record high of over 7.7 million wafers per month (wpm). The primary drivers behind this expansion are power and compound semiconductors, which are integral to industries such as consumer electronics, automotive, and industrial applications. Specifically, the development of powertrain inverters and EV charging stations is expected to be a key factor in the growth of global 200mm wafer capacity.
As demand increases, companies like Bosch, Fuji Electric, Infineon, Mitsubishi, Onsemi, Rohm, STMicroelectronics, and Wolfspeed are already advancing their 200mm capacity projects. This growing investment in 200mm fabs will lead to an increased need for specialized materials tailored to specific production requirements. Suppliers who can innovate and provide high-purity chemicals, advanced photomasks, and new material formulations will be well-positioned to capture market share and meet the evolving needs of the semiconductor manufacturing sector.
- The Increase In Demand For Semiconductors In The AI Industry.
The increasing demand for semiconductors driven by the rapid growth of Artificial Intelligence (AI) presents a significant opportunity for the semiconductor fabrication materials market. AI refers to systems that can simulate intelligent behavior, making decisions and recommendations based on complex data analysis and predefined rules. As AI continues to become integral to core industries such as healthcare, automotive, social media, agriculture, and e-commerce, its applications are expanding. AI technologies are critical in areas like self-driving cars, AI assistants (e.g., Alexa and Siri), advanced search engines, and diagnostic tools used in disease and cancer detection.
Semiconductors play a pivotal role in driving innovation in the AI industry. They are essential for various AI-related functions such as facial recognition, robotics, factory automation, autonomous driving, and surveillance. Each of these applications requires semiconductors specifically designed for optimal performance, underscoring the importance of the semiconductor fabrication process.
As the AI industry continues to evolve, the demand for specialized semiconductors will grow, creating a substantial need for advanced semiconductor fabrication materials. These materials are crucial for manufacturing the high-performance chips that power AI systems. As a result, the semiconductor fabrication materials industry stands to benefit greatly from AI's advancements and the increasing reliance on AI-driven technologies.
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The Report also Covers the Following Areas:
- Global Semiconductor Fabrication Material Market Size and Forecast
- Global Semiconductor Fabrication Material Market Trends
- Global Semiconductor Fabrication Material Market Analysis by Type
Global Semiconductor Fabrication Material Market 2024-2030: Key Highlights
- CAGR of the market during the forecast period 2025-2030
- Value Chain analysis of key stakeholders
- Detailed analysis of market drivers and opportunities during the forecast period
- Global Semiconductor Fabrication Material Market size estimation and forecast
- Analysis and predictions on end users’ behavior and upcoming trends
- Competitive landscape and Vendor market analysis including offerings, developments, and financials
- Comprehensive analysis of challenges and constraints in the Global Semiconductor Fabrication Material Market
Covid and Ukrainian Crisis Impact:
- The COVID-19 pandemic had a significant impact on the semiconductor fabrication materials market, disrupting global supply chains and leading to shortages of essential materials. Factory shutdowns and reduced workforce availability delayed production and testing of semiconductor components. Demand for electronics surged as remote work and digitalization increased, placing further strain on semiconductor manufacturing. These challenges highlighted vulnerabilities in the supply chain, prompting greater focus on supply chain resilience. Additionally, fluctuating material prices and transportation bottlenecks added to the market's volatility.
- Price increases were caused by conflicts between Russia and Ukraine. Numerous businesses have temporarily closed their units in Ukraine and ceased operations in Russia. Additionally, because businesses are reluctant to engage in an area that is experiencing political and economic uncertainty, the Ukrainian crisis has also resulted in a decline in market investments. This can affect the market's dynamics of supply and demand.
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List of Top Companies in the Global Semiconductor Fabrication Material Technology Market:
The Global Semiconductor Fabrication Material Market is fragmented as the majority share is held by the leading Global Semiconductor Fabrication Material manufacturers. The key companies profiled are listed below:
- Sumco Corporation
- Versum Materials Inc(Merck Group)
- Global wafers
- Shin-Etsu Chemical Co. Ltd.
- JSR Corporation
- Cabot Microelectronics Corp. (CMC)
- Sumitomo Chemical
- Photronics, Inc.
- DuPont de Nemours, Inc.
- Honeywell International Inc.
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