Semiconductor Materials Market Size to Rise USD 96.87 Bn By 2033

Published Date : 18 Apr 2024

The global semiconductor materials market size surpassed USD 62.4 billion in 2023 and is expected to rise around USD 96.87 billion by 2033, expanding at a CAGR of 4.54% during the forecast period from 2024 to 2033. The semiconductor materials market plays an important role in the production of integrated device materials which promotes the growth.

Semiconductor Materials Market Size and Growth Rate From 2024 To 2033

Market Overview

The semiconductor materials market is a subset of the modern materials industry, which is surrounded by materials used in the manufacturing of electronic components. These semiconductor materials are used in the production of semiconductor chips, which are necessary components of advanced electronics. Semiconductors are materials with extremely manageable electrical conductivity. They have a small band gap, which engineers are used to switch between nonconducting and conducting.

The market is driven by the rising demand for electronic elements in customer industrial, automotive, and electronics applications. The market is also enhanced by the advancement of new technologies such as the Internet of Things, artificial intelligence, and 5G, which need more advanced materials. The rising inclination towards the microscopic of electronics is offering major growth in the semiconductor materials industry. In addition, the rising customer base for electronics is also driving market growth in emerging countries.

Product innovations and technological developments in electronic materials to fuel the market growth

Due to new material and production developments, semiconductors are shifting from cut, shaped, or rigid substrates into thin wafers or discs to more flexible paper and plastic. Transistors, solar cells, light-emitting diodes, and numerous products have resulted from the trend toward adaptable substrates. There are several applications for semiconductor materials in the production of electrical devices.

For manufacturing microwave integrated circuits, LED technologies, photo resistors, high-performance RF devices, radio detectors, and solar cells, semiconductor materials are in high-rise demand in the electronics and electrical sectors. Moreover, connectivity in telecommunications and optoelectronic digital devices is pushing the semiconductor materials market all over the world. Moreover, developing wireless wearable technology and the sale of smartphones are driving the growth of the semiconductor material market.

On the other hand, the market for semiconductor materials may not increase as quickly as it might due to manufacturing process problems. The semiconductor industry is said to be among the most complicated in terms of produced goods since it requires over 500 processing stages. The market for changeable demand and volatile electronics presents another difficult environment for it. The manufacturing process alone for producing semiconductor wafers can involve up to 1,400 steps, depending on how sophisticated it is. Transistors are made on the lowest layer, and then various circuits are constructed to make the final result. Therefore, the growth of the industry is constrained by the complexity and increased prices associated with semiconductor materials.

Semiconductor Materials Market Report Scope

Report Coverage Details
Market Revenue in 2023 USD 62.4 Billion
Projected Forecast Revenue by 2033 USD 96.87 Billion
Growth Rate from 2023 to 2032 CAGR of 4.54%
Largest Market Asia Pacific
Base Year 2022
Forecast Period 2024 to 2033
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Semiconductor Materials Market Top Companies

  • Cabot Microelectronics
  • Galaxy Semiconductor
  • Electronic Materials
  • Hitachi High-Technologies
  • Tokyo Ohka Kogyo America
  • JSR Corporation
  • DowDuPont
  • Mitsui High-Tec
  • Air Liquide SA
  • Hemlock Semiconductor Henkel AG
  • Avantor Performance Materials

Recent Development by Hitachi High-Technologies

  • In December 2023, Hitachi High-technologies launched GT2000 high-accuracy electron beam analysis systems. The innovative GT2000 was helped with advanced detection systems to leading-edge 3D semiconductor appliances. It also monitored the production procedure of modern semiconductor appliances, which contributed to the development of consumer yields in mass production and R&D.

Recent Development by Galaxy Semiconductor

  • In April 2024, Galaxy Semiconductor launched the advanced Hyperdrive Predictive Quality System. This advanced innovation was for semiconductor materials and fab suppliers.

Regional Insights

North America is estimated to grow fastest during the forecast period. North America also has a good market share as it has sufficient management and efficient supply chain operations. The existence of well-developed market players and good economic conditions has driven the growth of the semiconductor materials market in this region. Canada and the United States are the major developing countries in NorthAmerica.

In the United States, the semiconductor industry is the world’s most modern R&D and manufacturing sector. The Semiconductor Ecosystem Map indicated the breadth of the industry, including locations controlling semiconductor fabrication, chip design, chip design software providers, intellectual property, and research and development by suppliers of semiconductor manufacturing materials in the United States. The U.S. provides a broad portfolio of advanced materials and high-quality materials that allow semiconductor manufacturers to develop the next-generation appliances that power the United States’s digital world.

Asia Pacific dominated the semiconductor materials market in 2023. In the development of the semiconductor materials industry, countries like South Korea, India, China, and Japan have played an important role. Due to the increased demand for consumer electronic products and wireless technology in the Asia Pacific region, semiconductor materials are in significant demand in these developing economies.

In China, the semiconductor materials industry, which includes integrated circuit manufacturing and designing, is the major information technology industry. China is the world’s biggest semiconductor market due to its consumption. China represented the majority of worldwide chip sales in billion. China launched various initiatives to decrease its reliance on foreign industries, investing a billion. In 2022, China announced a “Made in China 2025 “goal of maximum domestic production.

China focuses on the semiconductor industry and artificial intelligence to improve the development of the semiconductor industry. Including filing a suit in the World Trade Organization, the government of China responded with a diverse set of measures. There is the largest number of foreign semiconductor industries monitoring fabrication design and plant facilities in China, including leading companies such as Micron, Texas Instruments, UMC, Samsung, TSMS, and SK Hynix. These are the major factors that drive the growth of the semiconductor materials market in China.

  • In January 2024, Chinese researchers launched an advanced type of stable semiconductor graphene. This graphene showed performance 20 times bigger than the performance of two-dimensional semiconductors and 10 times higher performance than silicon.

Market Potential and Growth Opportunity

Rising adoption of IoT, AI, Data Analytics

AI is a high-processing network with a speedily deliverable semiconductor industry substrate that is versatile and flexible. The demand for real-time and quick processing is also stimulated by enlarging complex features in consumer electronics. Moreover, as IoT technology is forwarded, capacities like processing, real-time data transfer, data analytics, and artificial intelligence are becoming modern day by day for all advanced devices. In the life of artificial intelligence, the Internet of Things, and hybrid clouds, there is a growing desire for more energy capacity and chip performance. To develop skills and serve a more extensive consumer, Asian businesses intend to increase their capacity.

Semiconductor Materials Market News

  • In May 2023, to build the most advanced facility for collaborative semiconductor process technology and manufacturing appliances development and research, Applied Material launched a landmark investment. The new appliance and process innovation center is designed to accelerate the development of foundational technologies required by the global semiconductor industries.
  • In June 2023, to accelerate access to sustainable energy across the global semiconductor value chain, Intel, Schneider, and Applied Materials launched an initiative to decarbonize the semiconductor supply chain.

Market Segmentation

By Product Type

  • Fab Materials
    • Process Chemicals
    • Photomasks
    • Electronic Gases
    • Photoresists Ancilliaries
    • Sputtering Targets
    • Silicon
    • Other Fabrication Materials
  • Packaging Materials
    • Substrates
    • Lead Frames
    • Ceramic Packages
    • Bonding Wire
    • Encapsulation Resins (Liquid)
    • Die Attach Materials
    • Other Packaging Materials

By Application

  • Computers
  • Communications
  • Consumer Goods
  • Defense & Aerospace
  • Other

By Material

  • Silicon Carbide
  • Gallium Manganese Arsenide
  • Copper Indium Gallium Selenide
  • Molybdenum Disulfide
  • Bismuth Telluride

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