Semiconductor Materials Market

Global Semiconductor Materials Market Overview

The  Semiconductor Materials Market Size was valued at USD 62.4 Billion in 2023. The Semiconductor Materials industry is projected to grow from USD 65.17 Billion in 2024 to USD 92.33 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.45% during the forecast period (2024 - 2032). The semiconductor materials are those of which the conductivity can be controlled according to the requirements. Semiconductors are gaining momentum in the electronics industry as they are effectively replacing bulky thermionic devices such as vacuum tubes. The increasing inclination towards the miniaturization of electronics is presenting lucrative opportunities for the overall growth of the Semiconductor materials industry. The increasing consumer base for electronics is also impacting the Semiconductor materials market growth in developing countries. Therefore the global Semiconductor materials market value is expected to grow with a healthy CAGR of 60.347% during the forecast period.        

 Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Semiconductor Materials Market Trends

• High demand for small-sized gadgets with complex functionalities is boosted the market growth.

Semiconductor materials are intensively utilized in space-related applications and the energy-generating department of satellites. The solar cells integrated into the satellites utilize the semiconductors materials due to the properties such as higher resistance to radiation and warmth. The utilization of semiconductors is increasing in data storage devices as well. As industries are increasingly generating information from various sources, the demand for data storage devices is rapidly increasing. Such factors are impacting the Semiconductor materials market growth in recent years. 

Additionally, The communication segment is witnessing a higher growth rate in the semiconductor materials industry, owing to the increasing demand and the advent of advanced communication technologies and facilities. Mobiles and wireless communications are utilizing silicon semiconductors which exhibit favorable characteristics such as higher speed and efficiency. The growing population and urbanization continue to increase the demand for effective communication and such factors are expected to boost the semiconductor materials market growth during the forecast period. The beneficiary features of the semiconductor materials such as higher temperature limits and flexible electron mobility are propelling the manufacturers of electronic devices to utilize the semiconductors for energy customization. Moreover, light-emitting diodes and lasers are intensively utilizing semiconductor materials for several light-emitting applications in industrial verticals. The growth in these applications is presenting lucrative opportunities for the Semiconductor materials market growth.

L.G Chem began developing photoresist (P.R.) for use in back-end processes for semiconductors that it intended to sell to semiconductor companies globally starting May 2022. P.R. is then made for the back-end process after engraving ultra-fine circuit designs on the front-end process of semiconductors for enhanced chip performance.

In 2024 GlobalFoundries launched a new range of semiconductor materials with improved performance for advanced electronics.

In 2023 TSMC introduced innovative semiconductor materials designed to enhance chip performance and manufacturing efficiency.

Semiconductor Materials Market Segment Insights

Semiconductor Materials Product Insights

The  Semiconductor Materials Market segmentation, based on Product, includes Fab Materials and Packaging Materials. Packaging Material has the highest CAGR value in the  Semiconductor Materials Market. These materials are mainly used in the aerospace industry for a variety of applications including space and aircraft power supplies, solid-state relays and contractors, and VLF transmitters. 

Semiconductor Materials Application Insights

Based on Application, the  Semiconductor Materials Market segmentation includes Computers, Communications, Consumer Goods, Defense & Aerospace, and Others. Communications has the largest growing segment of the  Semiconductor Materials Market. Factors that contribute to the high demand for semiconductors for mobile phones and wireless communication. GaAs substrates are used in smartphone power amplifiers. Their use in wireless technology is growing due to their superior speed and efficiency over silicon semiconductors, which is boosting demand for the communication segment. Indium Corporation, a global electronics assembly and semiconductor packaging company materials provider in the US, opened its latest 37.500 sq feet production plant in Penang, Malaysia, in November 2022. The new facility has started operations while it aims to increase production capacity to serve Malaysia and surrounding countries like Thailand and Vietnam.

Figure 2:  Semiconductor Materials Market, by Product, 2023 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Semiconductor Materials Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America is holding the highest Semiconductor materials market share owing to their efficient management and supply chain operations despite the rising consumption in the Asia-pacific region. The economic condition and the presence of established market players in the region have enabled the country to maintain the first-class design and offer an increased production rate. The GaN semiconductor is increasingly produced in the region as it is intensively utilized in LED lighting and wireless technologies. The demand for GaN semiconductors is increasing as the demand for LED lighting is rapidly increasing across the region. Moreover, the presence of renowned semiconductor manufacturing facilities across the region and the growing adaptation of portable devices are propelling the overall growth of the semiconductor materials industry across North America.

Figure 3:  SEMICONDUCTOR MATERIALS MARKET SHARE BY REGION 2023 (%) 

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

the Asia-pacific region is exhibiting a market share of 40% in recent times and is expected to witness healthy growth in the forecast period. The production rate of electric vehicles, automobiles, and the growing aerospace industry across the region are presenting a lucrative opportunity for Semiconductor materials market growth across the Asia-pacific region.

Semiconductor Materials Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Semiconductor Materials market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Semiconductor Materials industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Semiconductor Materials. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their global presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Semiconductor Materials industry must offer affordable products.

Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the global Semiconductor Materials industry to benefit customers and expand the market sector. The Semiconductor Materials market has recently given medicine some of the most important advantages. Major Semiconductor Materials market players, including BASF SE, Cabot Microelectronics, DowDuPont, Hemlock Semiconductor, and others, are attempting to increase market demand by funding R&D initiatives.

ASF is a company that provides petrochemicals, intermediates, performance materials, monomers, dispersions and pigments, performance chemicals, catalysts, coatings, and care chemicals. It conducts its operations through six business segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition and Care, and Agricultural Solutions.

Also, DowDuPont is a chemical holding company that specializes in agriculture, materials science, and specialty products. Its solutions include seed-applied technologies, crop protection, performance materials and coatings, industrial intermediates, specialty plastics, imaging, biotechnology, nutrition ingredients, construction materials, sustainable solutions, advanced polymers, etc.

Key Companies in the Semiconductor Materials market include

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

Semiconductor Materials Industry Developments

September 2022 – Showa Denko K.K. (SDK) confirmed that it had merged with Showa Denko Materials Co., Ltd. (SDMC) on January 1, 2023 to establish “Resonac.” This new firm will take over as the holding company instead of SDK, while Resonac Corporation will be the operational company instead of SDMC. The Showa Denko Group seeks to create a leading-edge functional material major by constant reorganization actions. August 2022 - Indium Corporation showcased products from GalliTHERM which is their line of gallium-based liquid metals solutions. This ground-breaking product range incorporates more than six decades of experience in developing gallium-based liquid metals by the company. July 2021 –Showa Denko Materials Co. revealed that there will be an increase in its semiconductor material production capacity at its subsidiary firm located in Taiwan due to the high demand or requirements for its product. March 2021 - Intel announced investing $20 billion into two plants situated in Arizona as part of efforts aimed at responding to a worldwide shortage of chips used in cars and other electronic devices amid concerns that America is losing its edge in semiconductors manufacturing.

Semiconductor Materials Market Segmentation

Semiconductor Materials Product Outlook

• Fab Materials
• Packaging Materials

Semiconductor Materials Application Outlook

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

Semiconductor Materials Regional Outlook

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Australia
  • Rest of Asia-Pacific
• Rest of the World
  • Middle East
  • Africa
  • Latin America