Published: December 2023 | Report Code: 12816 | Available Format: PDF
The semiconductor chemicals market size has been estimated at USD 12.5 billion in 2023, and it is expected to advance at a compound annual growth rate of 12.5% during 2024–2030, to reach USD 28.3 billion by 2030.
This can be primarily ascribed to the growing use of electronic devices, including laptops, IoT gadgets, and smartphones, which has, in turn, propelled the production of semiconductors. This has further created a high demand for chemicals that are used in wafer fabrication processes. Moreover, the advancing semiconductor technologies, such as complicated designs, and the transition to smaller nodes necessitate the development of new chemicals, in order to meet the requirements for miniaturization, efficiency, and performance.
The use of electronic products is expanding across the globe, and they are being armed with the internet of things (IoT), artificial intelligence (AI), machine learning (ML), and other advanced technologies. Because of these innovations, a large amount of data needs to be processed quickly and stored in memory chips. Therefore, the burgeoning requirement for faster and more-sophisticated memory chips for industrial applications is expected to fuel the market progress over the coming years.
Additionally, with the use of materials such as germanium, gallium arsenide, and silicon, it became possible for electronics manufacturers to replace existing thermionic devices, which are responsible for making these devices heavy and non-portable. Thus, with the employment of miniature semiconductor elements, the end devices have themselves become much smaller. In turn, this has increased the demand for IoT, AI, and wireless gadgets.
Several companies are providing multi-chip packages, which will boost the market advance further. For instance, Micron Technologies Inc. offers multi-chip packages and high-capacity memory that support AI training and can be used on edge, cloud, mobile, and embedded devices. The new systems come with a single system-on-chip (SoC) in order to provide high degrees of integration. They combine memory, processors, sensors, RF transceivers, networking modules, and power management modules in a single component, thus providing enhanced security and power efficiency.
High-performance polymers hold the second-largest share, of 20%, attributed to their versatility and resistance to wear, heat, and chemicals, which make them suitable for use in harsh manufacturing environments. They are suitable for manufacturing the packaging material, components, and insulating layers of semiconductor devices, where durability and precision are important. The growing demand for advanced technologies and products, such as 5G, autonomous vehicles, and AI, has created a high demand for semiconductor components that can withstand high temperatures and other extreme conditions.
The optoelectronics category, within the end use segment, is growing significantly across the globe. This is attributed to the surging demand for optoelectronic components in multiple industries, such as automotive, consumer electronics, manufacturing, and medical devices. Here, these components are used in a wide range of applications, such as lights, displays, communication systems, and sensors.
Market Size in 2023
USD 12.5 Billion
Market Size in 2024
USD 13.9 Billion
Revenue Forecast in 2030
USD 28.3 Billion
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
By Type; By Application; By End Use; By Region
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APAC has a significant position in the semiconductor chemicals market, and it will reach a value of more than USD 6.0 billion by 2030. This is attributed to the growing automotive industry and the rising output of semiconductors. Along with the increasing semiconductor production, the rising research and development in this area are a significant driver. The market is also growing because of the strong government support for digitization and the presence of key players. In APAC, China holds the leading position, attributed to the fast adoption of advanced technologies.
Photoresists are a wide application area as these photosensitive resins are used in the process of lithography for transferring circuit patterns, such as those for semiconductors on a silicon wafer. On the surface of a silicon wafer, with a photochemical reaction caused by the irradiation of light, they form circuit patterns and cross through the photomask, on which the circuit patterns are drawn. They are used in several industrial processes, such as photoengraving and photolithography, wherein their structure changes with exposure to UV light. Following the change in structure, they form a coating over the substrate and are, therefore, used in the manufacturing of semiconductors.
In photoresists, the key chemicals used are polymethyl methacrylate, polymethyl glutarimide, and phenol formaldehyde resin. For manufacturing microelectromechanical systems, these chemicals are used as silicon etching agents for alkali cleansers, primarily because of their sharp patterning, high purity, and applicability to micro-processing.
The etching category is the second-largest, with a share of 15%, as this process helps in shaping semiconductor components. Majorly, it aids in the precise removal of materials from wafers and the creation of intricate patterns that are important for integrated circuits and various other semiconductor devices. Over the years, miniaturization demand has increased and led to the emergence of advanced designs, such as 3D NAND memory and FinFET transistors. Additionally, the demand for eco-friendly etching chemicals is growing with the rising focus on the conservation of the environment. This boosts the necessity for manufacturing processes that are sustainable, in turn, fueling the requirement for greener etching chemicals.
The demand for semiconductors is one of the biggest trends in the world, and due to it, the market for semiconductor chemicals is growing at a significant rate. This is due to their crucial role of powering electronic appliances, such as tablets, smartphones, and laptops. Therefore, this trend is shaping the demand for supreme chemicals that enable higher precision in the wafer fabrication process, increased production, and cost-effectiveness.
Although the cost of a critical chip can be a few dollars, their shortage can prevent the sale of a device worth tens of thousands of dollars. Semiconductors have now become a truly essential industry as they are used in most modern-day devices and equipment, including smartphones, laptops, automobiles, and industrial machinery, and also, futuristic applications, such as AI, quantum computing, and advanced wireless networks. Hence, as semiconductor foundries scramble to augment production, the demand for the associated chemicals will burgeon.
The demand for semiconductor chemicals is also growing because of the adoption of modern technologies across industries. These chemicals have a major role in the manufacturing and development of advanced semiconductor components, which are used across a large number of areas, such as aerospace, automotive, and even general manufacturing.
For instance, as per the International Energy Agency (IEA), in 2022, electric car sales exceeded 10 million units. The automotive industry has had to embrace advanced technologies with the advent of electric vehicles, modern infotainment systems, connected cars, and autonomous driving functions. Therefore, the growing requirement for semiconductor components in automobiles propels the demand for associated chemicals.
Additionally, AI, IoT, 5G, HPC, VR, and other modern technologies continue to advance. This drives the consumption of organic and ultrapure chemical formulations for producing novel displays for smartphones, semiconductor chips for the automotive and electronics industries, and highly efficient capacitors. Moreover, a key aspect of contemporary home improvement efforts is the integration of smart lights, HVAC systems, security devices, and building management systems, all of which depend on semiconductors. Similarly, people’s entertainment preference is shifting from large venues to more-intimate settings, which would have a long-lasting, favorable impact on the market in the coming years.
How much electricity semiconductors conduct and with what efficiency depends on the dopants added during production. The devices are required to be etched, cleaned, doped, polished, serviced, and regularly maintained for proper functioning. To enhance their efficiency and functionality, new materials are being used to fabricate the wafers, with a strong focus on sustainability. These developments are taking place in tandem with the increasing usage of renewable energy, electric vehicles, IoT, and other ‘green’ approaches to life.
Additionally, with the advent of cutting-edge devices that need to process massive volumes of data in seconds, the performance and miniaturization limitations of the traditional semiconductors based on silicon have become apparent. The alternatives to silicon are gallium nitride, silicon carbide, and various organic and 2D materials, such as graphene, which offer higher transparency, flexibility, and thermal conductivity.
The key providers of semiconductor chemicals are involved in product launches, mergers and acquisitions, and geographical expansions to improve their positions across the globe. The semiconductor chemicals market has been consolidated in 2023, with the top five players including Honeywell International Inc., The Dow Chemical Company, BASF SE, JSR Corporation, and Eastman Chemical Company, who are competing on the pricing of their products, apart from the quality and applicability.
The report analyzes the impact of the major drivers and restraints on the semiconductor chemicals market, to offer accurate market estimations for 2017–2030.
Based on Type
Based on Application
Based on End Use
The 2030 revenue of the market for semiconductor chemicals will be USD 28.3 billion.
The semiconductor chemicals industry will witness a CAGR of 12.5%.
The market for semiconductor chemicals is driven by the adoption of advanced digital technologies across industries.
Energy conservation and sustainability trends are shaping the semiconductor chemicals industry competitive landscape.
The market for semiconductor chemicals is consolidated.
Based on end use, optoelectronics hold a significant semiconductor chemicals industry share.
APAC and North America are considerable in the market for semiconductor chemicals.
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