Semiconductor Manufacturing Material Market Size, Share, Opportunities, And Trends by Type (Silicon, Germanium, Gallium Arsenide, Others), And By Geography – Forecast From 2023 To 2028

The semiconductor manufacturing material market is evaluated at US$56.884 billion for 2021, growing at a CAGR of 3.25%, reaching the market size of US$71.143 billion by 2028.

Advancements in materials and fabrication techniques have prompted a shift in the semiconductors industry away from inflexible substrates towards more adaptable options such as plastic materials and paper. The miniaturization of advanced material manufacturing has increased the need for new and innovative manufacturing materials in the projected period. This transition towards flexible substrates has given rise to a multitude of devices, including but not limited to light-emitting diodes, solar cells, and transistors.

Increasing demand for end-user industries

The increasing demand for consumer electronics is one of the major reasons propelling the semiconductor manufacturing material industry in the forecast period. Companies are adding new and developed products in their production line which are equipped with technologies such as the Internet of Things (IoT), and various end-user industries adopt the use of advanced consumer electronic products for optimal operation.  The increasing development of IoT technologies such as NB-IoT and Cat-M which primarily consist of wide-area cases, are a few of the reasons pushing the semiconductor manufacturing material market in an upward direction. Moreover, in countries such as China where automotive manufacturing is done heavily the consumption of such material is increasing which is increasing the semiconductor manufacturing material industry demand.

Increasing investments

According to the Semiconductor Industry Association, Chinese semiconductor industries are investing large sums in CAPEX, that is funds used by companies to acquire, upgrade, or maintain their assets. As per the above data in 2021, Chinese CAPEX companies invested US$ 12.3 billion which increased to US$ 15.3 billion in 2022. The increasing demand for manufacturing facilities and the growing need for semiconductors in the consumer electronics industry and automobile industry are pushing the semiconductor manufacturing material market in the projected period.

North American semiconductor manufacturing market is anticipated to propel

The bolstering growth for semiconductor manufacturing material is fueled by its pivotal role in enabling technological advancements and innovation across various industries, including electronics, telecommunications, automotive, and healthcare. The region is further segmented into the USA, Canada, and Mexico. The United States is expected to hold a substantial share of the semiconductor manufacturing material industry strongly influenced by increasing demand for high-performance semiconductors for emerging technologies like 5G, artificial intelligence, and electric vehicles, as well as government support for domestic semiconductor production. The market in Canada is expected to witness significant growth driven by a combination of factors, including a thriving technology sector, increased investment in research and development, and a focus on sustainable semiconductor production practices.

The United States is anticipated to be the fastest-growing country in the North American region

The increasing demand for cutting-edge technologies, such as 5G, artificial intelligence, and the Internet of Things (IoT), has created a strong need for advanced semiconductor materials. These materials are essential for developing faster, more efficient, and smaller electronic components to power these technologies. For example, in February 2023, Transcelestial received a $10 million funding injection to enhance laser technology, facilitating the advancement of internet infrastructure in both Asia and the United States. The U.S. government has recognized the importance of semiconductor manufacturing to national security and economic competitiveness. Initiatives like the CHIPS Act of 2022 (Creating Helpful Incentives to Produce Semiconductors for America) have provided financial incentives and funding for semiconductor research, development, and domestic production. This support has encouraged investments from both the public and private sectors.

Continuous research and development in the United States

the USA is at the forefront of semiconductor innovation, with many leading semiconductor companies and research institutions located in the country. Continuous research and development efforts have led to the creation of new materials, manufacturing processes, and semiconductor designs, further driving growth in the sector. For instance, in September 2023, the U.S. National Science Foundation revealed 24 research and educational initiatives, backed by a $45.6 million investment, which includes contributions from the "CHIPS and Science Act of 2022." These projects aim to accelerate advancements in semiconductor technology, manufacturing, and workforce development. The NSF Future of Semiconductors (FuSe) program supports these initiatives through a collaborative effort involving NSF and four corporations: Ericsson, IBM, Intel, and Samsung.

Growth in the USA semiconductor industry

In 2021, the U.S. semiconductor industry made a significant contribution to the Gross Value Added (GVA) to GDP, with a total of $277 billion. This comprised direct GVA of $96.1 billion, indirect GVA of $85.6 billion, and induced GVA of $95.3 billion. This robust performance of the semiconductor industry reflects its integral role in the U.S. economy. The substantial GVA underscores the significance of the semiconductor manufacturing material market in the USA, as the industry relies heavily on advanced materials and technologies to maintain its growth and economic impact, showcasing the close interdependence between the two sectors in driving technological innovation and economic progress.

Market Key Developments

• In August 2022, Indium Corporation launched a range of products derived from its GalliTHERM line, which features innovative solutions based on gallium-based liquid metals. These products will increasingly find adoption for semiconductor manufacturing.

Semiconductor Manufacturing Material Market Scope:

 

Report Metric	Details
Market Size Value in 2021	US$56.884 billion
Market Size Value in 2028	US$71.143 billion
Growth Rate	CAGR of 3.25% from 2021 to 2028
Base Year	2021
Forecast Period	2023 – 2028
Forecast Unit (Value)	USD Billion
Segments Covered	Type and Geography
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies Covered	BASF SE, LG Chem Ltd, Indium Corporation, Resonac, KYOCERA Corporation, Henkel AG & Company KGAA, Sumitomo Chemical Co. Ltd, Dow Chemical Co., International Quantum Epitaxy PLC, Nichia Corporation
Customization Scope	Free report customization with purchase

 

Segmentation:

• By Type
  • Silicon
  • Germanium
  • Gallium Arsenide
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Taiwan
    • Others

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1.  INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Force Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. SEMICONDUCTOR MANUFACTURING MATERIAL MARKET, BY TYPE

5.1. Introduction

5.2. Silicon

5.3. Germanium

5.4. Gallium Arsenide

5.5. Others

6. SEMICONDUCTOR MANUFACTURING MATERIAL MARKET, BY GEOGRAPHY

6.1. Introduction

6.2. North America

6.2.1. By Type

6.2.2. By Country

6.2.2.1. USA

6.2.2.2. Canada

6.2.2.3. Mexico

6.3. South America

6.3.1. By Type

6.3.2. By Country

6.3.2.1. Brazil

6.3.2.2. Argentina

6.3.2.3. Others

6.4. Europe

6.4.1. By Type

6.4.2. By Country

6.4.2.1. Germany

6.4.2.2. France

6.4.2.3. United Kingdom

6.4.2.4. Spain

6.4.2.5. Others

6.5. Middle East and Africa

6.5.1. By Type

6.5.2. By Country

6.5.2.1. Saudi Arabia

6.5.2.2. UAE

6.5.2.3. Israel

6.5.2.4. Others

6.6. Asia Pacific

6.6.1. By Type

6.6.2. By Country

6.6.2.1. China

6.6.2.2. Japan

6.6.2.3. India

6.6.2.4. South Korea

6.6.2.5. Indonesia

6.6.2.6. Taiwan

6.6.2.7. Others

7. COMPETITIVE ENVIRONMENT AND ANALYSIS

7.1. Major Players and Strategy Analysis

7.2. Market Share Analysis

7.3. Mergers, Acquisition, Agreements, and Collaborations

7.4. Vendor Competitiveness Matrix

8. COMPANY PROFILES

8.1. BASF SE

8.2. LG Chem Ltd

8.3. Indium Corporation

8.4. Showa Denko Materials Co. Ltd

8.5. KYOCERA Corporation

8.6. Henkel AG & Company KGAA

8.7. Sumitomo Chemical Co. Ltd

8.8. Dow Chemical Co.

8.9. International Quantum Epitaxy PLC

8.10. Nichia Corporation

BASF SE

LG Chem Ltd

Indium Corporation

Showa Denko Materials Co. Ltd

KYOCERA Corporation

Henkel AG & Company KGAA

Sumitomo Chemical Co. Ltd

Dow Chemical Co.

International Quantum Epitaxy PLC

Nichia Corporation