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The Semiconductor Materials Market was valued at USD 52.37 billion in 2019 and is expected to reach USD 66.92 billion by 2025, at a CAGR of 4.17% over the forecast period 2022-2031. The market is anticipated to witness a stimulating growth during the forecast period, owing to an increase in demand from various end-user industries. The ability of these materials to consume less power, along with broad temperature limits and high electron mobility, is projected to positively influence the global market.

– Since the inception of semiconductor elements, there has been a high degree of miniaturization, making electronic equipment more compact and mobile. Silicon is considered to be the best among all the semiconductor elements available in the current market scenario. On the type of material front, the materials used to manufacture semiconductors are found to evolve and replace the previous substrates and packaging for a few applications.​ For instance, the recent popularity of GaN material in power semiconductors has led to manufacturers switching to this material. – Although other conductors are used in more specific applications, silicon is immensely popular due to factors, such as high mobility at room temperature, as well as high temperatures and faster transfer of electrical currents through silicon semiconductors, when compared to any other.

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– In countries, like China, the government policies that boost the semiconductor industry are increasingly creating opportunities for the expansion of the semiconductor materials industry. For example, the policy framework released by the State Council of the People’s Republic of China aims to make advanced semiconductor packaging solutions, a technology priority across the semiconductor industry. – Amid the ongoing global COVID-19 outbreak is expected to significantly impact the studied market. However, multiple countries have recognized the strategic importance of semiconductor industry and priotorized the uninterupted operations. For instance, The US Department of Homeland Security has issued a national guidance for semiconductor industry under its essential critical infrastructure workers.

Advancements in Substrates to lead the growth in Packaging Segment

– Substrates are made of semiconductor materials and they serve as the foundation where electronic devices, such as transistors, diodes, and especially integrated circuits (ICs) are deposited. The substrates are required to have high thermal conductivity, in order to dissipate the heat generated by the components efficiently and quickly from the conductor layers. – Moreover, substrates, among all other types, have been witnessing a significant share due to being a base material of a circuit board and design of compact assemblies. As SiC substrates have been the area of focus for many years for many companies, the silicon substrates have witnessed wide adoption. A close examination of vendor activity in this field also suggests the same. – For instance, in July 2019, Soitec and Kokusai Electric Corporation extended their technology partnership via a R&D collaboration at Substrate Innovation Center in France. The center co-launched by CEA-Leti and Soitec, is an industry-inclusive hub that promotes early collaboration and learning from substrate to system level.

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North America to Witness Significant Growth

– In the North American region, the United States has been able to maintain its competitiveness efficiently managing the global design and manufacturing supply chains, even though the consumption of the semiconductors market has shifted heavily toward the Asia-Pacific region over the past decade. This approach has included the country’s ability to keep to high-value design and production work within the United States, while offshoring low-value production. This trend is illustrated by the country is the largest market for China’s export. – GaN, as a semiconductor material, is noted to have an established market in the region, as it is being employed extensively in LED lighting and wireless applications and power supplies. GaN characteristics, such as high-frequency operation, promote high performance while maintaining high efficiency. This had led the local manufactures of semiconductor components to opt for this material. In January 2020, MEGA Electronics announced the launch of GaN FET power supplies. – Additionally, the material suppliers in the region have been expanding on capacity levels, post the trade tensions with China. In July 2019, JSR Micro Inc. announced to expand its semiconductor materials manufacturing capabilities and capacity, with a construction of a new facility in Hillsboro OR. The company made an investment od USD 100 million toward the facility, which is scheduled to start operations in 2020. The new facility is expected to have a complete manufacturing suite including QA/QC, engineering and advanced process control capabilities.

The semiconductor materials market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets.

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