Silicon Wafers Market - Forecasts from 2024 to 2029

The silicon wafers market is evaluated at US$8.176 billion for the year 2022 growing at a CAGR of 5.52% reaching the market size of US$13.49 billion by the year 2029.

All types of electronic devices and components contain silicon wafers. The technology is used to fabricate integrated circuits and microelectronics. During microfabrication, silicon wafers function as substrates between microelectronic components as well as perform many other microfabrication processes such as doping, ion implantation, and etching. A high degree of miniaturization has resulted from the demand for more compact electronics. In addition to consumer expectations growing worldwide, a significant market for consumer electronics will continue to be driven by advanced technological devices such as smartphones, smart wearables, PCs, smart home devices, and other intelligent gadgets. Increasing disposable incomes and the acceptance of these devices will increase silicon wafer demand substantially in developing countries. US government investments in the semiconductor industry will significantly boost regional prospects. The U.S. Senate announced it would invest USD 52 billion in strengthening domestic semiconductor production as part of a broader effort to compete against China in May 2021. Furthermore, the growing popularity of automobiles in APAC is evident in the fact that more residents can now afford cars and other automobiles, resulting in a demand for semiconductors.  There has been an increase in revenues generated by the silicon wafer market due to the demand for semiconductors in the region.

APAC is on the rise in the consumer electronics and automotive sectors. Consumer electronics like mobile phones, TVs, digital cameras, and many others are experiencing a surge in demand due to economic growth in countries like China, India, Japan, Indonesia, and the Philippines. For instance, the GDP of Asia will surpass the GDP of the rest of the world combined in 2020.  Global growth is expected to reach 60% by 2030 if the region continues to grow at its current pace. (Source: weforum.org)

MARKET DRIVERS:

A rise in demand for automobiles is anticipated to propel the market.

Among the key factors driving the global silicon wafer market are increasing vehicle demand and an increase in manufacturing activity. The move towards hybrid and electric vehicles is due to higher vehicle demands and manufacturing. Developing and introducing new technologies into the automotive sector were other factors contributing to the development of the industry. The automotive industry offers vehicles with an anti-braking system when it grows. Innovations such as these support the drive for silicon wafers.  The market’s growth is therefore supported by these factors going forward into the future. Over 200 million electric passenger cars are predicted to be on the road by 2030, a rapid increase of just over 2 million vehicles in 2016. By 2030, there could be 900 million electric two-, three---, and four-wheeled vehicles on the road, which is more than the number of four-wheeled cars. (Source: irena.org).  These augmentations will consequently offer numerous opportunities to silicon wafer suppliers thus, boosting their market growth.

Growth in demand for semiconductors.

The silicon wafers market is directly and significantly impacted by the growing need for semiconductors. The requirement for silicon wafers, the essential substrate for semiconductor manufacture, rises in tandem with the proliferation of electronic gadgets and technologies that rely on semiconductors as their key components. As producers work to satisfy the expanding demands of the semiconductor industry, this surge is reflected in higher silicon wafer manufacturing quantities. Improvements in semiconductor technology, such as the shift to lower nanometer processes, highlight the complex link between these sectors and create a need for silicon wafers with greater accuracy and wider widths.

MARKET RESTRAINTS:

High cost and maintenance:

A high initial investment coupled with a questionable lack of returns is a major challenge facing silicon wafer vendors. Furthermore, thin silicon wafers for semiconductor fabrication are difficult to handle and must be supported mechanically outside, which makes it even more difficult for processors to handle 450 mm silicon wafers. This means it becomes necessary to use rigid career wafers, specially designed chucks, and dicing tape, thus exceeding budget expectations. Furthermore, the final product packaging is cumbersome hampering the market.

North America is anticipated to be the major regional market.

The region's technical breakthroughs and booming semiconductor sector drive the North American silicon wafers market. North America has a concentration of large semiconductor manufacturers and technology-driven businesses, which means that there is a steady need for silicon wafers, which are essential components in the creation of semiconductors. The market is further stimulated by the region's dedication to research and development, as continuous projects concentrate on expanding the frontiers of semiconductor technology.

Key Developments:

• In December 2023, Tokyo Electron announced the release of UlucusTM G, a wafer-thinning system for 300-wafer production. Greater flatness in silicon wafers is necessary for advanced patterning in semiconductor fabrication. Integrated wafer manufacturing equipment that can execute various operations automatically and continuously is preferred due to the worldwide labor shortage trend.
• In August 2023, Mitsubishi Electric Corporation announced that the construction of its first 12-inch silicon wafer processing line at its Fukuyama Factory, which produces power semiconductors for Power Device Works, has been completed. Furthermore, it has been confirmed by sample manufacturing and testing that the power semiconductor chips produced on this line of production meet the necessary performance standards.

Segmentation:

By Wafer Size

• 0- 100 mm
• 100 - 200 mm
• 200 - 300 mm
• More than 300 mm 

By Fabrication Method

• Czochralski Technique (Cz)
• Bridgeman Method
• Float-Zone
• Others

By Industry Vertical

• Consumer Electronics
• Automotive
• Manufacturing
• Telecommunications
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• Others 
• South America
• Brazil
• Argentina
• Others 
• Europe
• France
• Germany
• UK
• Italy
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• India
• South Korea
• Taiwan
• Thailand
• Indonesia
• Japan
• Others