PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1629333
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1629333
Semiconductor Consumables Market size was valued at USD 4,940.54 Million in 2023, expanding at a CAGR of 8.30% from 2024 to 2032.
Semiconductor consumables are the materials and supplies used in the manufacturing and fabrication of semiconductor devices, consumed throughout the production process. These include chemicals, gases, photoresists, etching solutions, cleaning agents, polishing pads, and wafers. These consumables are vital for processes like photolithography, etching, deposition, and cleaning, all of which are crucial for achieving precise and high-quality semiconductor manufacturing. They are essential for ensuring proper equipment functionality, maintaining production efficiency, and meeting the rigorous standards of the semiconductor industry. As semiconductor devices continue to become more advanced and smaller, the demand for high-quality consumables that support complex production steps is also growing.
Semiconductor Consumables Market- Market Dynamics
Increasing demand for semiconductors to propel market demand
As the demand for semiconductors continues to grow, the need for reliable and high-quality consumables becomes increasingly critical. Semiconductor consumables include various materials and components used in the manufacturing process, such as electrodes, focus rings, blades, gaskets, and other parts that require frequent replacement. These consumables are integral to the efficient operation of machinery and equipment involved in semiconductor production. Technological advancements are a key driver of the semiconductor consumables industry. As the demand for faster, more compact, and energy-efficient electronic devices rises, semiconductor manufacturers require advanced consumables to meet these evolving needs. Innovations in materials, new fabrication techniques, and the integration of artificial intelligence and machine learning in semiconductor manufacturing are expected to present significant growth opportunities in this market. The establishment of new semiconductor manufacturing facilities also drives the demand for consumables. As production capacities expand, the demand for these consumables is expected to increase rapidly. A prime example is the approval in March 2024 by India's Union Cabinet for INR 1.26 trillion (USD 15.07 billion) in investments to establish three semiconductor plants. This includes a major chip fabrication facility in Dholera, Gujarat, by Tata Electronics, in partnership with Taiwan's Powerchip Semiconductor Manufacturing Corp (PSMC). This facility will focus on manufacturing high-performance computing chips using 28 nm technology.
Semiconductor Consumables Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 8.30% over the forecast period (2024-2032)
Based on product type segmentation, Wet Chemicals was predicted to show maximum market share in the year 2023
Based on end user segmentation, consumer electronics was the leading segment in 2023
On the basis of region, Asia Pacific was the leading revenue generator in 2023
The Global Semiconductor Consumables Market is segmented on the basis of Product Type, Application, End User, and Region.
The market is divided into five categories based on product type: wet chemicals (acids, bases, associated mixtures, and organics), wafer shipping containers, wafer processing (cassettes, FOUP, FOSB boxes, etc.), test consumables, and end effectors. The Wet Chemicals Segment is expected to dominate the market in 2023. Semiconductor manufacturing heavily relies on the precise manipulation and fabrication of semiconductor materials, with wet chemicals playing a crucial role in various processes. These chemicals are essential for cleaning, etching, and passivating semiconductor surfaces, ensuring high-quality, defect-free devices. Wet chemicals are especially important in the cleaning processes for semiconductor wafers, which are often contaminated with impurities, residues, and contaminants from prior steps. Chemicals like sulfuric acid, hydrogen peroxide, and deionized water are used to remove these impurities, ensuring a pristine surface for the next stages of fabrication. Their use in maintaining clean environments during semiconductor production is critical to the production of reliable and high-performance devices.
The market is divided into five categories based on end user: consumer electronics, automotive, telecommunications, medical devices, and industrial & military applications. The consumer electronics sector dominates the semiconductor consumables market, driven by the increasing demand for advanced electronic devices such as smartphones, tablets, and wearable technologies. As these devices require more sophisticated semiconductors for enhanced performance, functionality, and miniaturization, the need for high-quality consumables, such as wafers, photoresists, and cleaning chemicals, has grown significantly. This trend is further fueled by the rapid pace of innovation in consumer electronics, necessitating continuous advancements in semiconductor manufacturing to meet the evolving demands of the market.
Semiconductor Consumables Market- Geographical Insights
Geographically, this market is widespread into the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business. The Asia-Pacific region, particularly Taiwan, plays a pivotal role in semiconductor manufacturing. Taiwan's success in the semiconductor industry is largely due to proactive government involvement. The Taiwanese government has implemented policies and initiatives, such as the Industrial Upgrading and Transformation Plan, aimed at boosting the industry's competitiveness. This plan includes investments in research and development, talent acquisition, and infrastructure, while also offering tax incentives, subsidies, and funding support to domestic semiconductor companies. These efforts encourage innovation and help Taiwanese companies expand their global reach, positioning Taiwan as a key player in the global semiconductor market.
To maintain dominance in the semiconductor consumables market, companies adopt several strategies, including research and development (R&D) to enhance the performance and efficiency of their products. Innovation in materials, such as developing high-purity chemicals and gases, is essential to meet the ever-evolving demands of the semiconductor industry. Additionally, companies form strategic partnerships with semiconductor manufacturers to ensure a reliable supply of consumables and integrate new solutions into production processes. Expanding their global presence is another crucial strategy, as semiconductor manufacturing is geographically diverse, with a significant emphasis on Asia. Another focus is on cost optimization, where companies refine their manufacturing processes to reduce the costs of consumables while maintaining high product quality. Sustainability initiatives, such as creating environmentally friendly consumables and reducing waste, are becoming increasingly important to align with industry regulations and meet customer preferences. Additionally, offering customized solutions tailored to specific manufacturing needs helps companies remain competitive in this specialized market. The semiconductor consumables market is highly competitive, with major players like FormFactor Inc., Technoprobe SpA, Micronics Japan Co. Ltd, Entegris Inc., and Shin-Etsu Polymer Co. Ltd. These companies are striving to innovate new products through extensive investments in R&D, collaborations, and mergers to meet the evolving demands of consumers.
In November 2023, Teradyne Inc., a leading provider of automated test solutions, and Technoprobe SpA, a key player in probe card design and production, announced a series of agreements to establish a strategic partnership. This partnership aims to accelerate growth for both companies and enable them to deliver higher-performance semiconductor test interfaces to their global customers. As part of the deal, Teradyne will invest nearly USD 516 million in Technoprobe, while Technoprobe will acquire Teradyne's Device Interface Solutions business for USD 85 million. The companies also plan to engage in joint development projects.