LMW
LMW

Do you want to advertise here? Contact us

OEM Play Store
OEM Play Store

Do you want to advertise here? Contact us

The demand for advanced semiconductors is likely to remain strong given the proliferation of emerging technologies like 5G
.

The demand for advanced semiconductors is likely to remain strong given the proliferation of emerging technologies like 5G

By OEM Update Editorial May 18, 2023 11:22 am

The global semiconductor fabrication materials market is poised to grow rapidly in the coming years, with an expected market size of US$ 47.2 billion in 2023. Looking ahead, experts at FMI anticipate that the market revenue could exceed US$ 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:

  1. Increasing demand for electronics and semiconductor devices across various industries, such as automotive, healthcare, and aerospace
  2. Growing demand for consumer electronics such as smartphones, tablets, laptops, and wearables
  3. The rising adoption of IoT, AI, and cloud computing technologies is driving the demand for semiconductor devices
  4. Growing demand for advanced packaging materials along with technological advancements in semiconductor fabrication processes
  5. Advancements in semiconductor manufacturing technology as well as integrated circuit fabrication technology
  6. Increasing demand for semiconductor manufacturing equipment and machines from the automotive industry

Challenges for Market Players in the Semiconductor Fabrication Materials Industry:

  1. High costs associated with semiconductor fabrication materials and equipment
  2. Technological complexity and high skill requirements of manufacturing processes Dependence on a few key players in the industry can lead to supply chain disruptions and market volatility
  3. High initial capital investment required for wafer fabrication facilities
  4. Stringent government regulations on hazardous chemicals and certain materials used in the semiconductor fabrication process
  5. Limited availability of raw materials and volatility in the prices of semiconductor materials

2023 to 2033 Semiconductor Fabrication Materials Demand Outlook in Comparison to Sales Registered from 2018 to 2022

The semiconductor fabrication materials market size was US$ 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

Growing deployment of advanced materials in semiconductor fabrication, such as silicon carbide, gallium nitride, and graphene

Advertising

OEM Android App

Your future advertising space? Our media data

A shift toward new business models in the industry, such as foundries, fabless companies, and chipsets

The emergence of new substrates bonding technologies as well as new materials for lead frames and substrates

New applications for semiconductor devices, such as autonomous vehicles, 5G wireless networks, and smart cities

Integration of semiconductor devices with other technologies, such as sensors, actuators, and energy storage systems

An increasing focus on digitalization and automation of semiconductor manufacturing processes

Innovation in semiconductor materials and manufacturing processes to reduce costs, increase efficiency, and improve performance

United States Semiconductor Fabrication Materials Sector Receives Strong Investment

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.

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 US$ 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.

 

Cookie Consent

We use cookies to personalize your experience. By continuing to visit this website you agree to our Terms & Conditions, Privacy Policy and Cookie Policy.

Autodesk
Autodesk
TCI
TCI
OEM Update QR Code
OEM Update QR Code

Events

India Essen Welding and Cutting Expo
India Essen Welding and Cutting Expo
Logimat India
Logimat India
Metal Forming Expo
Metal Forming Expo
ChemProTech India 2025
ChemProTech India 2025
Aerodef India Manufacturing Expo
Aerodef India Manufacturing Expo

eMagazine November 2024

eMagazine November 2024
eMagazine November 2024

Do you want to advertise here? Contact us

Our Sponsors

DIRAK
DIRAK
Pragati Gears
Pragati Gears
Carl Zeiss India
Carl Zeiss India
STMCNC
STMCNC
Nord
Nord
Messer Cutting
Messer Cutting
Atos Profilo
Atos Profilo
Fronius
Fronius
SCHMALZ
SCHMALZ
Sigma-Weild
Sigma-Weild
Mallcom
Mallcom
igus
igus
DH Secheron Electrodes
DH Secheron Electrodes
Timken India
Timken India
UNP Polyvalves India Pvt Ltd
UNP Polyvalves India Pvt Ltd
ENS Oils & Lubricants
ENS Oils & Lubricants
Super Slides
Super Slides
Autonics
Autonics
Fuel Instruments  Engineers
Fuel Instruments  Engineers
Velvex
Velvex
Universal Orbital
Universal Orbital
Chicago Pneumatic Tools
Chicago Pneumatic Tools
MMC Hardmetal Pvt Ltd
MMC Hardmetal Pvt Ltd
Mennekes
Mennekes
ACD Machines
ACD Machines
TruCut
TruCut
tectyl
tectyl
BKT Tires
BKT Tires
Fibro India
Fibro India
Deceler
Deceler
Balluff
Balluff
Urgo Capital
Urgo Capital
Amsak Cranes
Amsak Cranes
Molygraph
Molygraph
SKS Welding
SKS Welding
pioneer Cranes
pioneer Cranes
Exorint
Exorint
Schmersal India
Schmersal India
Exon mobil
Exon mobil