About the Report
The global semiconductor wafers is expected to growth at 5.6% CAGR through 2030. A blip is expected in the short-run, owing to the recessionary impact ushered in by the COVID-19 pandemic. This crunch is most likely to be felt across the automotive and industrial manufacturing sectors.
Opportunities abound across the telecommunications and consumer electronics segment. 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 semiconductor wafers sales.
Surging Electric Vehicles Market
Electric Vehicles (EVs) are acquiring immense popularity, owing to heightened environmental concerns. The International Energy Agency estimates EV sales to surpass 250 million units by 2030, reducing oil demand by approximately 4.3 million barrels per day. Governments worldwide are encouraging policies to encourage EV sales on a much larger scale.
Since the past decade, electric car deployment is expanding prolifically. The global electric cars fleet exceeded 5.1 million, with China remaining the world’s largest market, followed by Europe and the U.S. Amidst these developments, semiconductor wafers sales are experiencing major traction in recent years.
An important aspect of longevity of EVs is their battery life. Hence, semiconductor wafer manufacturers are deploying innovations offering the potential for an enhanced battery life. For instance, Robert Bosch launched its silicon carbide automotive chips suitable to be mounted on EVs in 2019, yielding a 6% range increase.
Deepening 5G Technology Penetration
Globally, businesses are shifting towards 5G connectivity with a hope to enhance operational efficiency and increase transaction volumes. 5G networks yield 20 times faster speeds and reduced download times, thus making it suitable for applications in industries such as automotives 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.
In September 2020, Dutch chipmaker NXP inaugurated its GaN 5G chip plant in Arizona for the purpose of enhancing 5G telecommunications equipment. The facility will make GaN radio chips for 5G wireless data equipment.
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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 overlocking, sunlight, age and other radiation types.
Such important legislative developments are enabling semiconductor wafer manufacturers to enhance their production and scale of operations across various regions. Emerging economies such as India and China are potential hotspots for investment, as these giants have highly favourable business climates, prompting manufacturers to establish base.
Rising Environmental Concerns
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 the global semiconductor wafers in the long run. Fortunately, chip manufacturers are investigating alternative methods to reduce their environmental footprint resulting from silicon manufactured semiconductor wafers.
An important development in this field is that of transient electronics, which are capable of dissolving or resorbing in physiological environments in a controlled manner. This technology is being deployed to manufacture eco-friendly sensors, data-secure hardware and temporary biomedical implants. This is likely to open new avenues for semiconductor wafer manufacturers.
Semiconductor Wafers Market- Region-wise Analysis
North America Semiconductor Wafers Market
The North America semiconductor wafers market is expected to reach US$ 18 Bn by 2020-end, owing to rising ownership of 5G-enabled technological devices. Nearly a quarter of the global semiconductor wafers sales are expected to occur across North America.
A plethora of end-use applications ranging from IoT, connected devices and artificial intelligence are effectively leveraging semiconductor wafers. Furthermore, defence and commercial applications involving 5G technologies are broadening semiconductor wafers market size across North America.
For instance, autonomous military vehicles equipped with 5G technology can easily circumvent on-board data processing limitations by storing copious amounts of databases in a cloud format. This would require deployment of advanced technological hardware, pivoting semiconductor wafers market growth.
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Europe Semiconductor Wafers Market
The Europe semiconductor wafers market growth is primarily steered by extensive applications across the automotive industry. As of 2019, the European market accounted for 20% of the global revenue share.
The market is interspersed with increasing investments by prominent market players. For instance, Robert Bosch invested € 1 billion to inaugurate a new semiconductor plant called Wafer Fab RB300 in Dresden, East Germany, in 2019 to expand its automotive electronics business.
Likewise, 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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East Asia Semiconductor Wafers Market
The East Asian semiconductor wafers market is expected to be the most lucrative, expected to yield 25% of the global revenue share in the near-term forecast period. Amongst all countries, China is expected to be the kingpin in upcoming years, particularly across the automotive and consumer electronics segments.
The Chinese automotive industry is the largest in the world, producing and delivering over 28 million passenger and light commercial vehicles in 2017. Volkswagen and Honda were the largest automotive manufacturers, collectively recording over 4.5 million unit sales.
Such high automotive sales volumes have aggrandized semiconductor wafers applications across the industry. Furthermore, it is also the world largest EV market, a primary application area for semiconductor wafers in the future.
Pam-Xiamen is a prominent semiconductor wafer manufacturer in the East Asian giant, marketing the freestanding gallium nitride substrate wafer for UHB-LED and LD applications respectively and possesses low defect density.
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Automotive Semiconductor Wafer Sales Expand Nearly Twofold
By application, the automotive semiconductor wafers sales are likely to expand nearly twofold by 2030, attributed to surging automotive production across key regions. Silicon wafers are especially extensively used to design navigation, collision detection and infotainment systems in cars.
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.
150-200 mm Semiconductor Wafers Hold Sway
150-200 mm sized semiconductor wafers are slated to generate significant expansion opportunities, registering a Y-o-Y growth worth 5% by 2020-end. 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 semiconductor wafers to power highly sophisticated technological devices. For instance, Infineon Technologies introduced the CoolMOSTM products equipped with 300 mm semiconductor wafers in 2013.
COVID-19’s Impact on the Semiconductor Wafers Market
Amid the COVID-19 pandemic, the global semiconductor wafers market outlook is expected to vary across different end-use industries. FIERCE Electronics predicted that declining demand for motor vehicles has ushered in a 16% decline in auto power semiconductor sales throughout 2020. Thus, a blip is anticipated in the long-run.
German auto supplier giant Continental AG recently reported that a rebound in Chinese demand following a global sales slump due to the pandemic has resulted in a shortage of semiconductors which may generate bottlenecks until 2021, despite prompt responses from semiconductor manufacturers.
However, demand is likely to remain sustained in the wake of high consumer electronics sales in the past few months. For instance, India registered double digit growth in the appliances and consumer electronics segment since September 2020, owing to the onset of the festive season, bolstering uptake of semiconductor wafer components.
For instance, Samsung India reported a 32% Y-o-Y growth with respect to televisions, washing machines, microwaves and refrigerators, thus widening the scope of semiconductor wafer sales.
Semiconductor Wafers Market- Competition Analysis
FMI’s semiconductor wafers market analysis has incorporated profiles of the following manufacturers*:
- 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
*This list is indicative- full details about the semiconductor wafers market players is available upon request.
Prominent semiconductor wafers vendors rely on a combination of strategies, ranging from technological advancements, product launches and collaborations to expansion of manufacturing and research capacities in order to penetrate a wider customer base.
In August 2020, Applied Materials Inc. launched the SYM3® Y Etch System for application across the 3D NAND, DRAM and foundry-logic nodes. The device leverages innovative radiofrequency pulsing technology to provide extremely high material selectivity, depth control and profile control.
Vendors also rely on providing specialized education to deepen market penetration. For example, ASM International offers specialized short-term courses to equip stakeholders with the best practices associated with semiconductor wafer manufacturing. It is currently intending to organize a course on advanced metallographic techniques from December 14-17 2020.
With respect to solution offerings, Nikon Corporation offers an entire range of semiconductor lithography systems. One of its product line is the ArF Immersion Scanner series, offering a resolution of < 38 nm, performing high speed ultra-precise measurement of all wafers and grid error correction with minimal throughput reduction.
Semiconductor Wafers Market- Report Scope
Historical Data Available for
US$ Mn for Value & ‘000 Units for Volume
Key Regions Covered
North America, Latin America, Europe, South Asia & Pacific, East Asia, Middle East & Africa
Key Countries Covered
U.S., Canada, Mexico, Brazil, Germany, Italy, France, U.K., Spain, Russia, BENELUX, China, Japan, South Korea, India, ASEAN, Australia, GCC, Turkey, Northern Africa & South Africa
Key Segments Covered
Wafer Size & Application
Key Companies Profiled
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.
Market Overview, Key Market Trends, COVID-19 Impact Assessment, Market Structure Analysis, Demand Analysis, Market Background, Segmental Analysis, Regional Profiling, and Competition Analysis
Customization & Pricing
Key questions answered in the report
- How will the global semiconductor wafers market expand until 2030?
According to Future Market Insights, the global semiconductor wafers markets is expected to register value CAGR worth 5.6% for the assessment period ranging from 2020-2030. Growth is primarily attributed to increasing demand from consumer electronics and automotive industries
- Which is the most lucrative market for semiconductor wafer sales?
East Asia, particularly China, is anticipated to emerge as a potential revenue hotspot in the long-term. Growth is primarily ascribed to burgeoning automotive volume production, especially in the electric vehicles segment. However, Europe and North America are equally opportunistic markets for the future
- How has COVID-19 impacted the predicted growth prospects?
The COVID-19 pandemic has ushered in a moderate blip, particularly in the automotive segment. This downturn is attributed to shortfalls in production levels experienced due to government imposed shutdowns. However, this downswing has been offset by a surging demand for consumer electronics in the wake of business entities encouraging work-from-home directives
- Which is the most promising semiconductor wafers application segment?
Consumer electronics is likely to capture the lion’s share of the semiconductor wafers market, owing to increasing ownership of smart devices in the wake of deepening internet penetration. Moreover, foray into 5G technology is expected to act as a key growth stimulant
- Which are the prominent semiconductor wafers market players?
Prominent players profiled in the global semiconductor wafers market 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
Enquiry before Buying
- Is the semiconductor wafers research conducted by Future Market Insights?
Yes, the semiconductor wafers report has been compiled by expert analysts of Future Market Insights through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to the research analyst.
- What research methodology is followed by FMI?
FMI follows a methodology that encompasses the demand side assessment of the market, and triangulates the same through a supply side analysis. This methodology is based on use of standard market structure, methods and definitions.
- Who are the respondents for primary research?
FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.
- What are the sources of secondary research?
FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
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- Less than 150 mm
- 150-200 mm
- More than 200 mm
- Consumer Electronics
- Industrial Manufacturing
- North America (U.S & Canada)
- Latin America (Brazil, Mexico & Rest of Latin America)
- Europe (Germany, Italy, France, U.K, Spain, BENELUX, Russia & Rest of Europe)
- South Asia and Pacific (India, Thailand, Indonesia, Malaysia, Oceania & Rest of South Asia & Pacific)
- East Asia (China, Japan & South Korea)
- Middle East & Africa (GCC, Turkey, Northern Africa, South Africa & Rest of MEA)