The Global Semiconductor Wafer Market size is expected to reach $22.03 billion by 2027, rising at a market growth of 4.6% CAGR during the forecast period.
A semiconductor wafer is defined as a thin slice of semiconductor material like silicon or gallium arsenide. These wafers are crucial elements of integrated circuits (ICs). They can be utilized for various applications in smartphones, computers, laptops, digital & electrical gadgets, and others
As semiconductors have become the crucial component of every new technology, the developments and innovations in this domain are directly influencing all downstream technologies. The semiconductor silicon wafer is one of the major elements of various microelectronic devices and is the building block of the electronics industry. These products find potential applications in various types of devices due to the rapid pace of digitization and electronic mobility being the prevalent trends in the market.
The rise in demand for consumer electronic goods like tablets, smartphones, and laptops is expected to boost the demand for reclaimed as well as virgin products which are the crucial elements of the integrated circuits utilized in these devices. Moreover, the semiconductor wafer market is expected to be driven by the rising installations of solar panels, particularly in the Mexico, U.S., and China.
Based on Wafer Size, the market is segmented into 6 Inch, 8 Inch, 12 inch, and others. Based on Technology, the market is segmented into Packaging & Assembly, Wafer Bumping, Testing & inspection, and others. Based on product type, the market is segmented into Processor, Memory, Analog, and others. Based on end User, the market is segmented into Consumer Electronics, Automotive, Industrial, Telecommunications, and others. Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa.
COVID-19 Impact Analysis
The electronics and semiconductor industry has been severely impacted by the outbreak of the COVID-19 pandemic. Companies and manufacturing facilities across several nations were shut down, due to the stringent lockdown restrictions in response to the rising number of COVID-19 cases. Moreover, the pandemic has created uncertainty in the stock market and led to declined business confidence, remarkable disruption in supply chin, and a rise in panic among the customer segments.
Due to strict lockdown restrictions, the Asia and European nations have experienced a massive loss of business and revenue owing to the closure of manufacturing facilities. The global pandemic has severely impacted the activities of production and manufacturing firms; thereby hampered the growth of the semiconductor wafer market during the pandemic.
Market Growth Factors:
Growing demand and popularity of Electric vehicles
Electric Vehicles (EVs) are witnessing massive popularity and demand globally. This is credited to the rising concerns about the environment. As per the estimates of the International Energy Agency, the sale of EVs is expected to cross 250 million by 2030, thereby decreasing the demand for oil by around 4.3 million barrels each day. In addition, governments around the world are introducing initiatives and policies to adopt EVs on a wide scale.
Massive demand across vehicular safety
The traction of self-driving vehicles is constantly increasing as process automation is increasing inroads in the worldwide automotive sector. In addition, the various complicated chips controlling the functions of all systems should be safeguarded against electrical errors which may diminish sophisticated features like collision avoidance. As per the Industrial Standard ISO26262, the automotive sector makes it a priority to provide mechanical engineering more superior in terms of safety. The standard provides stringent regulations for manufacturing chips impenetrable to erroneous signals and effects that occurred by sunlight, overlocking, age, and other radiation kinds.
Marketing Restraining Factor:
Complicated nature of manufacturing
Factors such as the consistently changing semiconductor market and the complicated nature of the manufacturing process are anticipated to slow down the growth and demand for semiconductor wafers during the forecasting period. In addition, one of the barriers to the growth of the market is the massive production costs of semiconductor wafers. Moreover, massive initial costs with an uncertain return on investment is expected to hamper the growth of the semiconductor wafers during the forecasting period.
Wafer Size Outlook
The Semiconductor Wafer Market is segregated into 6 Inch, 8 Inch, 12 inch, and others. Among these, the 12 Inch segment contributed the largest revenue share in the semiconductor wafer market in 2020. This is credited to the high demand for the product across several industries.
Product Type Outlook
The Semiconductor Wafer market is segregated into Processor, Memory, Analog, and others. In 2020, the memory segment garnered the maximum revenue share of the semiconductor wafer market.
End-user Outlook
The Semiconductor Wafer Market is divided into Consumer Electronics, Automotive, Industrial, Telecommunications, and others. Moreover, the segment significantly uses the semiconductor wafer in consumer electronic devices such as laptops, computers, smartphones, and other systems in order to improve energy efficiency and for high-frequency rectification.
Regional Outlook
The Semiconductor Wafer Market is analyzed across North America, Europe, APAC, and LAMEA. APAC region procured the maximum revenue share of the overall semiconductor wafer market in 2020. Moreover, the segment is likely to showcase a promising growth rate throughout the forecasting period. This is credited to the massive growth of the consumer electronics industry.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include ASM International N.V., Shin-Etsu Chemical Co., Ltd., Okmetic Oy (National Silicon Industry Group NSIG), GlobalWafers Singapore Pte. Ltd. (Sino-American Silicon Products Inc.), ASML Holding N.V., Elkem ASA, Lanco Infratech, Applied Materials, Inc., and Sumco Corporation.
Recent Strategies Deployed in Semiconductor Wafer Market
- Oct-2021: GlobalWafers completed the acquisition of Siltronic, a Munich-based company and one of the world's top suppliers of silicon wafers. Following the acquisition, Siltronic is expected to expand the capability of GlobalWafers in 5G, power, and the Internet of Things. Moreover, the acquisition aimed to assist the company to expedite the development of more advanced, compound-based semiconductor technology.
- Sep-2021: Applied Materials introduced CMP and hot ion implant systems for 200mm silicon carbide wafer production. Through this launch, the company is expected to assist silicon carbide (SiC) chipmakers to shift from 150mm wafer production to 200mm production. This is expected to twice the die output per wafer and help to fulfill the rising demand for premium electric vehicle (EV) powertrains.
- Jul-2021: ASM International came into a partnership with CEVA Logistics, a global logistics and supply chain company. Through this partnership, CEVA Logistics established an ultra-modern, in-house operations site at the new global manufacturing headquarters of ASM International in Singapore. Following the partnership, CEVA expanded its geographical footprint and further enhanced its position as a major service vendor catering to the specialized needs of the semiconductor industry.
- Jul-2021: ASM International rolled out an Intrepid ESA epitaxy tool for 300mm applications for analog and power devices, and for epitaxial silicon wafers. The new tool is built on the proven, high-volume-manufacturing Intrepid platform, and is expected to expand ASM’s atmospheric epi suites with ASM’s first 300mm atmospheric cluster tool. The Intrepid ESA provides superior on-wafer performance.
- Jun-2021: GlobalWafers signed an $800 million agreement with GlobalFoundries, a multinational semiconductor contract manufacturing, and design company. Under this agreement, the two companies is expected to include 300mm silicon-on-insulator wafer manufacturing and scale up its current 200mm SOI wafer production at GWC's MEMC facility in O'Fallon, Missouri.
- Oct-2020: Applied Materials signed an agreement with BE Semiconductor, a Dutch multinational company that designs and manufacturers semiconductor equipment. The agreement aimed to create the first of its kind comprehensive and proven equipment solution for die-based hybrid bonding, a new chip-to-chip interconnect technology that allows heterogeneous chip and subsystem designs for applications including high-performance computing, AI, and 5G.
- Jan-2020: Applied Materials entered into a partnership with SC Solutions, a high-technology company, specializing in Structural Engineering and Control Systems. The partnership aimed to fulfill the requirement for real-time profile control on Applied Materials 200mm Mirra CMP tools. Following the partnership, the two entities addressed a wide range of technical issues.
- Jan-2020: Shin-Etsu signed a licensing agreement with Qromis, a developer of techniques for depositing thin layers of wide-bandgap materials on substrates. Under this agreement, Shin-Etsu aimed to expand its offering using Qromis' QST substrate technology.
- Nov-2019: ASM International launched A400 DUO vertical furnace system with dual reactor chambers for wafer sizes of 200mm and smaller. The DUAL Boat reactors of this system generate high throughput, rising reactor utilization to an extreme percentage while ensuring low Capex.
Scope of the Study
Market Segments Covered in the Report:
By Wafer Size
- 6 Inch
- 8 Inch
- 12 inch
- Others
By Technology
- Packaging & Assembly
- Wafer Bumping
- Testing & inspection
- Others
By Product Type
- Processor
- Memory
- Analog
- Others
By End User
- Consumer Electronics
- Automotive
- Industrial
- Telecommunications
- Others
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- ASM International N.V.
- Shin-Etsu Chemical Co., Ltd.
- Okmetic Oy (National Silicon Industry Group NSIG)
- GlobalWafers Singapore Pte. Ltd. (Sino-American Silicon Products Inc.)
- ASML Holding N.V.
- Elkem ASA
- Lanco Infratech
- Applied Materials, Inc.
- Sumco Corporation
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Table of Contents
Companies Mentioned
- ASM International N.V.
- Shin-Etsu Chemical Co., Ltd.
- Okmetic Oy (National Silicon Industry Group NSIG)
- GlobalWafers Singapore Pte. Ltd. (Sino-American Silicon Products Inc.)
- ASML Holding N.V.
- Elkem ASA
- Lanco Infratech
- Applied Materials, Inc.
- Sumco Corporation
Methodology
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