Global Semiconductor Fabrication Material Market Size Likely to Expand at a CAGR of 5.4% By 2033

As per the current market research conducted by CMI Team, the global Semiconductor Fabrication Material Market size is expected to record a CAGR of 5.4% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 65.2 billion. By 2032, the valuation is anticipated to reach USD 82.1 billion.

Semiconductor Fabrication Material Market: Growth Factors and Dynamics

• Global Connectivity and IoT Boom: The increasing interconnectedness through the Internet of Things (IoT) fuels demand for semiconductor fabrication materials, as IoT devices rely on advanced chips to process and transmit data effectively, contributing to market growth.

• Government Investments in Semiconductor Manufacturing: Governments worldwide are investing in semiconductor manufacturing capabilities to strengthen their domestic industries, leading to increased demand for fabrication materials in emerging semiconductor markets.

• Supply Chain Optimization: Industry players are optimizing the semiconductor supply chain to ensure a steady flow of materials, reduce lead times, and enhance operational efficiency, creating a conducive environment for market growth.

• Technological Shifts in Semiconductor Fabrication: The transition from 2D to 3D chip architectures and the adoption of novel materials, like wide-bandgap semiconductors for power electronics, create new opportunities for semiconductor fabrication material suppliers to cater to evolving industry demands.

• Impact of COVID-19: The semiconductor fabrication material market experienced fluctuations due to the COVID-19 pandemic. While there were disruptions in supply chains and production, the increased demand for electronic devices for remote work and digitalization drove the need for semiconductor chips and associated materials, stimulating the market’s recovery.

• Adoption of Advanced Materials: The industry’s increasing adoption of advanced materials, such as compound semiconductors and advanced packaging materials, to meet the requirements of emerging applications like 5G, AI, and electric vehicles, fosters the demand for specialized semiconductor fabrication materials, encouraging further market growth.

• Shift to Smart Manufacturing: The semiconductor fabrication material market is witnessing a shift towards smart manufacturing practices, such as Industry 4.0 and automation. This transition requires materials with improved reliability, consistency, and traceability, driving the demand for advanced semiconductor fabrication materials that can support intelligent manufacturing processes.

Semiconductor Fabrication Material Market: Partnership and Acquisitions

• Screen Holdings Co., Ltd. and Axcelis Technologies, Inc.: In 2020, Screen Holdings and Axcelis Technologies formed a partnership to integrate advanced ion implantation technologies with semiconductor material solutions, optimizing chip performance.

• KLA Corporation and Nova Measuring Instruments Ltd.: In 2021, KLA Corporation joined forces with Nova Measuring Instruments to enhance process control and metrology capabilities for semiconductor fabrication, ensuring high-quality chip production.

• ASML Holding N.V.’s Acquisition of HMI (Hermes Microvision, Inc.): In 2018, ASML Holding acquired HMI, a leading provider of semiconductor metrology equipment, strengthening ASML’s portfolio in lithography and process control solutions.

• Applied Materials, Inc.’s Acquisition of Kokusai Electric Corporation: In 2019, Applied Materials acquired Kokusai Electric, a supplier of semiconductor manufacturing equipment, expanding its product offerings and market presence in the semiconductor fabrication material sector.

Report Scope

Semiconductor Fabrication Material Market: COVID-19 Analysis

The COVID-19 pandemic has had a significant impact on the Semiconductor Fabrication Material Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Supply Chain Disruptions: The Covid-19 pandemic led to disruptions in global supply chains, affecting the availability and delivery of semiconductor fabrication materials, causing delays and shortages in production.

• Decline in Consumer Electronics Demand: During lockdowns and economic uncertainties, the demand for consumer electronics, such as smartphones and laptops, experienced a temporary decline, impacting the demand for semiconductor chips and fabrication materials.

• Increased Demand for Electronics: As economies reopened, there was a surge in demand for electronic devices, including smartphones, laptops, and IoT devices, driving the demand for semiconductor chips and fabrication materials, and accelerating market recovery.

• 5G and IoT Adoption: The adoption of 5G technology and the increasing penetration of IoT devices boosted the demand for high-performance semiconductor chips, leading to a higher need for advanced fabrication materials to support these applications.

• Government Incentives and Investments: Governments worldwide provided incentives and investments in semiconductor manufacturing to bolster domestic industries, creating a positive environment for the market’s recovery and growth.

• Focus on Semiconductor Manufacturing Technologies: The pandemic accelerated the adoption of smart manufacturing practices, such as automation and digitization, in semiconductor fabrication, driving the need for advanced materials with improved reliability and consistency.

• Shift to Remote Work and Digitalization: The pandemic accelerated the trend of remote work and digitalization, leading to an increased reliance on cloud services and data centers. This shift drove the demand for high-performance semiconductor chips and fabrication materials to support the growing data processing needs, contributing to market recovery.

• Focus on Healthcare and Biotechnology: The Covid-19 pandemic highlighted the importance of the healthcare and biotechnology industries. The demand for advanced medical devices, diagnostics, and pharmaceuticals led to an increased need for semiconductor chips and specialized fabrication materials for these applications, further aiding the market’s recovery.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Semiconductor Fabrication Material Market, with some challenges and opportunities arising from the pandemic. Manufacturers and retailers need to remain agile and adapt to the changing market conditions to overcome these challenges and capitalize on new growth opportunities.

List of the prominent players in the Semiconductor Fabrication Material Market:

• Applied Materials Inc.
• Lam Research Corporation
• Tokyo Electron Limited
• KLA Corporation
• ASML Holding N.V.
• Axcelis Technologies, Inc.
• Screen Holdings Co. Ltd.
• Hitachi High-Tech Corporation
• Nova Measuring Instruments Ltd.
• BE Semiconductor Industries N.V. (Besi)
• Others

The Semiconductor Fabrication Material Market is segmented as follows:

By Material

• Silicon Wafers
• Photomasks
• Photoresists
• Wet Chemicals
• CMP Slurry and Pads
• Gases
• Sputter Targets
• Photoresist Ancillaries

By Application

• Consumer Appliances
• Power Generation
• Electronic Components
• Others

By End User Industry

• Telecommunication
• Energy
• Electrical and Electronics
• Medical and Healthcare
• Automotive
• Others

By Region

North America

• The U.S.
• Canada
• Mexico

Europe

• France
• The UK
• Spain
• Germany
• Italy
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America