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Surging Energy Sector Investments To Propel Semiconductor Fabrication Materials Market: A Significant Driver Propelling The Semiconductor Fabrication Material Market In 2025
Semiconductor Fabrication Material
What Is the Semiconductor Fabrication Material Market Size and Projected Growth Rate?
In recent times, the semiconductor fabrication material market has seen significant expansion. By 2025, it is projected to rise from $66.38 billion in 2024 to $73.07 billion, with a compound annual growth rate (CAGR) of 10.1%. This past growth is linked to several factors, including the evolution of the electronics sector, advancements in semiconductor material technology, increased demand for smaller yet more robust chips, the global consumer electronics market, widespread use of semiconductors in the automotive sector, and ongoing research and development in the field of materials science.
Anticipated to experience swift expansion in the coming years, the market size for semiconductor fabrication materials is predicted to reach a value of $111.05 billion in 2029, reflecting a compound annual growth rate (CAGR) of 11.0%. The projected growth during the forecast period can be credited to the shift to 5nm and below semiconductor nodes, 3D packaging and chip stacking, the advent of quantum materials and computing, the demand for AI and IoT chips, the use of sustainable and eco-friendly materials, and focus on miniaturization and power efficiency. Key trends within this period are forecasted to incorporate advanced materials for neuromorphic computing, application of 2D materials in semiconductors, monolithic 3D integration for chip stacking, usage of EUV lithography for finer features, in-memory computing materials, as well as materials used for neuromorphic and quantum computing.
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What Are the Major Segments in the Semiconductor Fabrication Material Market?
The semiconductor fabrication material market covered in this report is segmented -
1) By Semiconductor Type: N-Type, P-Type
2) By Fabrication Material: Silicon wafers, Photomasks, Photoresists, Other Fabrication Materials
3) By End User: Telecommunication, Energy, Electrical and Electronics, Medical and Healthcare, Automotive, Defense and Aerospace, Other End Users
Subsegments:
1) By Silicon Wafers: Monocrystalline Silicon Wafers, Polycrystalline Silicon Wafers, SOI (Silicon-On-Insulator) Wafers
2) By Photomasks: Binary Photomasks, Phase Shift Photomasks, Attenuated Phase Shift Masks
3) By Photoresists: Positive Photoresists, Negative Photoresists, Specialty Photoresists
4) By Other Fabrication Materials: Dielectrics, Metals, Etchants and Strippers, CMP (Chemical Mechanical Polishing) Slurries
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What Are The Driving Semiconductor Fabrication Material Market Evolution?
The growth of the semiconductor fabrication materials market is predicted to be stimulated by an upsurge in investments in the energy sector. Semiconductors, typically used in energy sectors like solar panels, drives, and pumps of wind and water turbines, and safeguarding circuits in energy conversion to guarantee optimal performance with less power loss. A significant amount of investments in the energy division is being made by the government. The International Energy Agency (IEA) investment report in 2022, an independent intergovernmental organization based in France focusing on energy, forecasts a rise in global energy investments by more than 8% in 2022, amounting to USD 2.4 trillion, marking a considerable increase in comparison to levels before the Covid-19 pandemic. Although all segments of the energy sector have seen a rise in investments, the power sector has seen the largest increases lately - especially within renewables and grids, and with more spending being seen on end-use efficiency. As a result, the surge in energy sector investments is aiding the escalation of the semiconductor fabrication materials market.
Which Firms Dominate The Semiconductor Fabrication Material Market Segments?
Major companies operating in the semiconductor fabrication material market include Air Liquide SA, Avantor Inc., BASF SE, Dow Inc., Hitachi Chemical Company Limited, JSR Corporation, Kanto Chemical Co. Inc., KMG Chemicals Inc., Linde AG, Indium Corporation, Kyocera Corporation, Showa Denko Materials Co. Ltd., Applied Materials Inc., DuPont de Nemours Inc., Cabot Microelectronics Corporation, Merck KGaA, Mitsubishi Chemical Corporation, Mitsui Chemicals Inc., Nippon Steel Chemical & Material Co. Ltd., Praxair Inc., Shin-Etsu Chemical Co. Ltd., Sumitomo Chemical Co. Ltd., Tokyo Ohka Kogyo Co. Ltd., Tosoh Corporation, Ube Industries Ltd., Versum Materials Inc., Wacker Chemie AG, Wafer World Inc., Air Products and Chemicals Inc., Entegris Inc., Heraeus Holding GmbH, Honeywell International Inc., Lam Research Corporation, Tokyo Electron Limited
What Trends Are Expected to Dominate the Semiconductor Fabrication Material Market in the Next 5 Years?
Product advancements have become a significant trend in the semiconductor fabrication material market, capturing growing attention. Enterprises in the semiconductor fabrication material field are striving to create new and unique products in order to maintain their market standing. For example, Panasonic Corporation from Japan, known for its electronic and electric product manufacturing, unveiled a new semiconductor package substrate material (Product No. R-1515V) in June 2022. This product offers both minimal package warping and heightened assembly-level reliability. The material's extremely low thermal expansion characteristics play a vital role in reducing substrate warping during the packaging phase and the optimized mechanical features help alleviate the residual stress on solder joints.
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Which Is The Largest Region In The Semiconductor Fabrication Material Market?
Asia-Pacific was the largest region in the semiconductor fabrication material market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the semiconductor fabrication material market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Semiconductor Fabrication Material Market?
2. What is the CAGR expected in the Semiconductor Fabrication Material Market?
3. What Are the Key Innovations Transforming the Semiconductor Fabrication Material Industry?
4. Which Region Is Leading the Semiconductor Fabrication Material Market?
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