Semiconductor Wafer Market

The Semiconductor Wafer Market report, recently released by ESOMAR-certified market research firm Future Market Insights (FMI), forecasts a mostly positive growth trajectory for the 2020–2030 assessment period. The analysis reveals the key forces that will shape the market’s potential for future growth.

As businesses and corporations aim to diversify their operations in the future, one of the main growth drivers is the deeper adoption of 5G technology. A quarter of all mobile traffic data will be transmitted over 5G networks by 2024, which will be spread across 2/5 of the planet. As a result, wafer output to make ICs for 5G devices is increasing.

Semiconductor Wafer Market

  • By application, automotive semiconductor wafers to experience nearly twofold growth until 2030
  • Extensive applications to be witnessed across consumer electronics, particularly in the manufacturing of integrated circuits (ICs)
  • By size, 150-200 mm semiconductor wafers are likely to generate over 2/3rd of the revenue share by the 2020-end
  • East Asia to emerge as the market hegemon, with China pivoting maximum growth, Europe and North America remain highly lucrative
  • Global semiconductor wafer market to register value CAGR worth 5.6% through 2030

COVID-19 Impact Analysis

The novel coronavirus pandemic has ushered in multiple impacts across the global semiconductor wafer market. Stringent government-mandated lockdowns have contracted production of automotives, a key application area for semiconductor wafers.

A 16% decline was experienced in the global automotive industry since the past few months, thereby restraining sales of semiconductor wafers for multiple purposes such as infotainment systems, collision detection and navigation.

Simultaneously, surging sales of consumer electronic products is keeping the semiconductor wafer market demand afloat, particularly across emerging economies. With mandatory lockdowns imposed, corporate entities, educational institutions and entertainment houses are encouraging virtual interactions, thus upscaling demand for smartphones, tablets and laptops.

Consumption Analysis of Semiconductor Wafers from 2015 to 2021 Vs Future Market Outlook for 2022 to 2030

“Growing Digitization to Drive Demand for Semiconductor Wafers”

From 2015 to 2021, the global market for semiconductor wafers experienced a CAGR of around 4.7%.

A thin layer of semiconductor material, such as silicon or gallium arsenide, is referred to as a semiconductor wafer. Integrated circuits (ICs) require semiconductor silicon wafers to function properly. Because semiconductors have become such an integral part of every new technology, advancements and breakthroughs in this field have a direct impact on all downstream technologies.

A semiconductor silicon wafer is the basic foundation of the electronics industry, and is one of the most important components of many microelectronic devices. Because of the growing rate of digitization and rising prevalence of electronic mobility in the semiconductor silicon wafers market, these items have potential uses in a variety of devices.

As governments continue enforcing social distancing norms, corporate entities have been compelled to extend remote working arrangements, thus accelerating demand for IoT devices, thus sustaining sales of semiconductor wafers.

Electric Vehicles (EVs) are acquiring immense popularity, owing to heightened environmental concerns. Governments worldwide are encouraging policies to encourage EV sales on a much larger scale. These factors are pushing the market forward.

Global semiconductor wafers consumption is anticipated to surge at a 5.7% CAGR from 2022 to 2030.

Which Factors are Likely to Propel Sales of Semiconductor Wafers?

“Increase in Adoption of Smart Devices Driving Market Expansion”

  • Deepening 5G Technology Penetration

Globally, businesses are shifting towards 5G connectivity with the hope to enhance operational efficiency and increasing transaction volumes. 5G networks yield 20 times faster speeds and reduced download times, thus making them suitable for applications in industries such as automotive and smart city development.

Semiconductor wafers manufactured using Gallium Nitride (GaN) are expected to become highly renowned, with the capacity to achieve a power-added efficiency (PAE) of 50% or more. Furthermore, domains such as AI augmented reality and autonomous vehicles are expected to deploy 5G technology on a wide scale.

  • High Demand across Vehicular Safety

With process automation increasing inroads in the global automotive industry, the popularity of self-driving vehicles is garnering credible momentum. The numerous complex chips governing the functioning of all systems must be protected against electrical faults which could undermine advanced features such as collision avoidance.

According to Industrial Standard ISO26262, the automotive industry makes it a priority to render mechanical engineering more safety conscious. The standard offers strict guidelines for manufacturing chips impervious to faulty signals and effects induced by sunlight, age and other radiation types.

What Restraints are Being Faced by Semiconductor Wafer Manufacturers?

“Rising Environmental Concerns to Hamper Market Growth”

A typical semiconductor factory manufactures about 2 million integrated circuits every month, consuming over 20 million gallons of water. This ultimately has to be discharged in the form of industrial effluent. In addition, wafer manufacturers employ numerous toxic chemicals, which can harm the environment.

Consequently, manufacturers are drawing a lot of flak from governments and environmental activists, which is expected to hinder growth prospects for global semiconductor wafers in the long run.

The complicated nature of the production process and high production costs of semiconductor wafers are expected to restrain demand for semiconductor wafers.

Which Region is a Lucrative Market for Semiconductor Wafer Suppliers?

“Rising Advancements in Semiconductor System Designs Driving Market Growth in Europe”

Market growth in Europe is primarily steered by extensive applications across the automotive industry. The market is interspersed with increasing investments by prominent market players. Advanced semiconductor system design and manufacturing, rising investments by key players in electric vehicles, and growing usage of smartphones are driving the market growth in Europe.

Infineon Technologies has a prominent presence in Austria which offers semiconductor and system solutions facilitating energy efficiency, mobility and security concepts. It offers semiconductor solutions for the automotive, power management & multimarket, industrial power control and chip card & security solutions respectively.

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Country-wise Analysis

Why is the U.S. Semiconductor Wafer Market Witnessing High Demand?

“Rapid Deployment of 5G Technology in Various Applications Driving Market Expansion”

The U.S. is expected to be a significant revenue contributor to the market, owing to the rising ownership of 5G-enabled technological devices.

A plethora of end-use applications ranging from IoT, connected devices and artificial intelligence are effectively leveraging semiconductor wafers. Furthermore, defense and commercial applications involving 5G technologies are broadening semiconductor wafer market size across the U.S.

For instance, autonomous military vehicles equipped with 5G technology can easily circumvent onboard data processing limitations by storing copious amounts of databases in a cloud format. This would require the deployment of advanced technological hardware, pivoting semiconductor wafer market growth.

What is the Semiconductor Wafer Market Outlook for China?

“Surging Adoption of Automotive Devices Aiding Market Growth”

Amongst all countries, China is expected to be the kingpin in upcoming years, particularly across the automotive and consumer electronics segments. Favorable economic conditions and rising consumer electronics demand are driving market growth in China.

The Chinese automotive industry is the largest in the world. High automotive device sales volumes have aggrandized semiconductor wafers applications across the industry. Furthermore, it is also the world’s largest EV market, a primary application area for semiconductor wafers in the future.

Category-wise Insights

Which Semiconductor Wafer Size is More Preferred in the Market?

“150 to 200 mm Semiconductor Wafers Enjoy High Demand across Several Industries”

150 to 200 mm semiconductor wafers are slated to generate significant expansion opportunities. Applications in technologies such as iPhone-X’s face recognition unlocking along with numerous other technologies have expanded usage of such chips.

The over 200 mm segment is also expected to garner credible traction, with numerous manufacturers introducing larger-sized silicon wafers to power highly sophisticated technological devices.

Which is the Leading Application of Semiconductor Wafers?

“Rapid Deployment of Semiconductor Wafers in Consumer Electronics to Improve Energy Efficiency

Consumer electronics application is expected to account 35% share of the semiconductor wafer market in 2022. Consumer electronics are expected to witness prolific expansion, registering a volume CAGR worth 6.0% across the assessment period.

Demand for semiconductor wafers in this segment is largely attributed to the need to manufacture integrated circuits to power devices such as laptops, smartphones and personal computers to improve energy efficiency and for high-frequency rectification.

Competitive Landscape

Prominent semiconductor wafers manufacturers profiled in the report include Applied Materials Inc., ASM International, Nikon Corporation, SCREEN Semiconductor Solutions Co. Ltd., Hitachi High-Technologies Corporation, Tokyo Electron Limited, ASML Holding N.V., KLA Corporation, Lam Research Corporation and others.

In November 2020, Hitachi High-Technologies Corporation launched its 3D SEM CT1000 used for defect observation across semiconductors. The devices enable a three-dimensional observation of pattern and defects shapes occurring during the manufacturing process on wafers measuring upto 200 mm in diameter.

These insights are based on a report on Semiconductor Wafer Market by Future Market Insights