Global Semiconductor Materials Market – Growth, Trends, Impact of COVID-19 and Forecast (2021)


The global semiconductor materials market is expected to grow at a CAGR of 4.17% over the forecast period from 2021 to 2026. The increasing advancements in the semiconductor industry and growing needs for advanced semiconductor products are some of the main factors driving the investments. in the semiconductor materials market.

New York, June 15, 2022 (GLOBE NEWSWIRE) — announces the publication of the report “Global Semiconductor Materials Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)” –
Although the semiconductor industry is currently experiencing fluctuating revenue growth, the growing need for an advanced product still motivates market vendors and end-user organizations to invest in the development of semiconductor materials.

Semiconductor materials represent one of the major innovations in the electronics industry. This can be attributed to their high electron mobility, wide temperature limits and low power consumption. According to SEMI, global sales of semiconductor production equipment increased by 19%, from $59.8 billion in 2019 to $71.2 billion in 2020, setting a new all-time high.
In the current market scenario, a significant portion of electronic devices, including laptops, smartphones, computers, etc., still use integrated circuits and other semiconductor devices made from carbon-based substances. silicon. Although silicon still dominates the major applications in the market, new materials are replacing previous substrates and packaging for a few uses.
For example, the popularity of the GaN material in power semiconductors has led manufacturers to turn to this material. Due to their speed and efficiency, GaN-based transistors find new applications, especially in optoelectronics, compared to SiC-based ones. GaN has a thousand times greater electron mobility than silicon and relatively stable operability at higher temperatures.
GaN-based transistors find new ways, especially in optoelectronics, compared to SiC-based transistors, because they are faster and more efficient. GaN has 1000 times greater electron mobility than silicon, as well as relatively stable operability at higher temperatures as well. ?
Currently, the most vital challenges in semiconductor electronics include further improvements that would increase data transmission bandwidth, power efficiency, and information security. Harnessing quantum effects is likely to be a breakthrough. Quantum effects in superconductors could give a new twist to semiconductor technology. In December 2021, researchers from the Paul Scherrer Institute PSI and Cornell University in New York State identified a composite material that could integrate quantum devices into semiconductor technology, making the components much more powerful electronics.
During the first quarter of 2020, COVID-19 had a negative impact on the market in terms of supply chain disruptions and factory closures in China and other major electronics manufacturing countries in Asia. which has created a shortage of semiconductor chips around the world. As a result, various companies are focusing on increasing their orders and maintaining a stock of the semiconductor components needed to produce the final product to mitigate delays in the event of component shortages.
This has fueled the growth of the market in 2020 and 2021 which is expected to continue in 2022. Additionally, various vendors are focusing on shifting their supply chain out of China due to the effects of the pandemic and its strains with the United States, which was further aggravated during the COVID-19 pandemic.

Main market trends

Consumer electronics expected to drive significant demand

The growing popularity and affordability of consumer electronics has influenced the growth of semiconductor materials. Consumer electronics like laptops, tablets, cell phones, and smart watches require complex implementation of semiconductor materials, which is driving the market growth in consumer electronics segment.
The smartphone market is the main consumer of semiconductors in this segment. The smartphone market has been very competitive in recent years. The growing use of mobile phones is expected to drive the market across the globe. The deployment of 5G and the growing implementation of IoT technology are further expected to boost the growth of the smartphone industry. The growing interest of telecom operators in investing and launching 5G technology is expected to fuel the demand for 5G-enabled devices, where consumers and industries are expected to opt for 5G devices.
Silicon carbide (SiC) and gallium nitride (GaN) semiconductor materials exhibit superior properties, allowing potential operation of power devices at high voltages, but especially at high temperatures and switching frequencies compared to conventional silicon technology, which is driving demand for these materials in consumer electronics. .
The driving factor in the demand for SiC material semiconductors is the need for electronics manufacturers to increase the battery life of the device. The trend is the same for the PC and portable device markets. Manufacturers want their customers to spend less time charging their devices. Manufacturers like OPPO, One Plus, Motorola, Samsung, and Apple offer these fast-charging adapters, which are key to their marketing strategy.
Additionally, Gallium Nitride (GaN) is a next-generation semiconductor material whose characteristics make it an excellent candidate for use in devices used to charge mobile devices and other consumer electronics. The material provides more efficient AC/DC power conversion compared to traditional silicon devices, which reduces energy wastage during charging while significantly reducing the size and weight of the charger, which reduces the environmental impacts of the life cycle.

Asia-Pacific will hold a significant share

Asian countries such as China, Taiwan, Japan and South Korea have played leading roles in the development of the semiconductor industry. The Asia-Pacific region is expected to account for a major market share in the global semiconductor materials market owing to the growing demand for wireless technologies and consumer electronics products from emerging economies such as India, Taiwan, and China. .
Taiwan is one of the largest semiconductor manufacturers in the world. The country is home to Taiwan Semiconductor Manufacturing Limited (TSMC), United Microelectronics Corporation and other major players, leading the country’s semiconductor industry. Additionally, according to the March 2021 report by SEMI, Taiwan has remained the world’s largest consumer of semiconductor materials for more than a decade. A similar trend is expected in the coming years based on the strength of the country’s large foundry capacity and advanced packaging base.
As China’s semiconductor industry actively seeks partnerships with international players to bolster its prowess in the US-China trade war, semiconductor supply chains -Taiwan drivers, especially OSAT backend service providers, stand to benefit significantly from strong partnering activities.
Additionally, in South Korea, the country has boosted its manufacturing of semiconductor materials through government loan initiatives. For example, in May 2021, the government announced that it would provide approximately KRW 1 trillion in long-term loans to expand 8-inch wafer chip contract manufacturing capacity and investment in materials and technologies. ‘packaging.
A similar trend has been seen in countries like India, where the government is pushing for the development of regional semiconductor industries with the aim of reducing their dependence on other countries. These trends are further expected to increase the demand from the semiconductor materials industry in the region.

Competitive landscape

The semiconductor materials market is quite competitive and consists of significant players. However, in terms of market share, few major players, such as LG Chem Ltd, Kyocera Corporation, Intel Corporation, etc., currently dominate the market. However, with the help of technological advancements, product innovations and partnerships, medium to small-sized companies are increasing their market presence by securing new contracts and tapping into new markets.

October 2021 – BASF and Entegris signed an agreement on the sale of the Precision Microchemicals business to Entegris for 90 million USD. The transaction includes technologies, intellectual property and trademarks and is expected to close by the end of 2021. The Precision Microchemicals business is part of the surface treatment business unit of BASF’s Coatings Division, operating under the Chemetall brand. It develops, manufactures and markets high-purity materials, including cleaning chemicals and chemical mechanical planarization (CMP) slurries used in the machining and surface conditioning of electronic materials.
October 2021 – Showa Denko Materials Co. Ltd announced the mass production of “MCL-E-795G” series, an advanced functional laminate material for printed circuit boards. The MCL-E-795G achieves high packaging reliability such as low distortion and high heat resistance required for semiconductor substrates used for large servers in data centers and high-performance computing ( HPC).

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