Semiconductor Chemical Market Type( High Performance Polymers, Acid & Base Chemicals, Adhesives, Solvents), Application(Photoresist, Etching, Deposition, Cleaning), End-Use (Integrated Circuits, Discrete Semiconductor), & Region - Global Forecast to 2028
Updated on : March 20, 2024
Semiconductor Chemicals Market
The global semiconductor chemicals market was valued at USD 12.2 billion in 2023 and is projected to reach USD 21.9 billion by 2028, growing at 12.3% cagr from 2023 to 2028. The semiconductor chemicals market experiences robust growth driven by a the increasing demand for advanced electronic devices, such as smartphones, laptops, and IoT gadgets, has led to a surge in semiconductor production. This, in turn, boosts the need for high-quality chemicals and materials used in semiconductor fabrication processes. Additionally, the rapid evolution of semiconductor technologies, including the transition to smaller nodes and more complex designs, necessitates the development of new and specialized chemicals to meet the industry's stringent requirements for performance, efficiency, and miniaturization.
Attractive Opportunities in the Semiconductor Chemicals Market
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Semiconductor Chemicals Market Dynamics
Driver: Growth in demand for semiconductor chemicals fueled by industries powered by modern technologies
The demand for semiconductor chemicals is experiencing robust growth, largely driven by industries powered by modern technology. These chemicals play a pivotal role in enabling the development and manufacturing of advanced semiconductor components used across a wide range of sectors. According to a 2023 news article from the International Energy Agency (IEA), global sales of electric cars exceeded 10 million units in 2022. Furthermore, it is anticipated that sales will experience a remarkable 35% increase this year, reaching a total of 14 million electric cars sold. This rapid growth signifies a substantial expansion in the electric car market's share of the overall automotive industry, climbing from approximately 4% in 2020 to 14% in 2022. According to the latest projections from the IEA, this share is expected to further expand to 18% in the current year. Thus the automotive industry is undergoing a profound technological transformation, with electric vehicles (EVs), autonomous driving systems, advanced infotainment, and connected car technologies becoming the norm. The automotive sector is in the midst of a technological revolution, with semiconductor chemicals playing a central role. All of these innovations rely heavily on semiconductor components, and as the automotive sector embraces these changes, the need for advanced semiconductor chemicals grows.
Restraint: Difficulties associated with managing waste generated by semiconductor Chemicals
Managing waste generated by semiconductor chemicals, like any industrial waste management process, comes with several risks and challenges that need to be addressed to minimize environmental and health impacts. Many semiconductor chemicals are hazardous and toxic to human health and the environment. Improper handling, storage, or disposal of these chemicals can lead to contamination of soil, water, and air, posing risks to workers, communities, and ecosystems. As per data provided by the World Counts website, the quantity of hazardous waste has witnessed a notable increase. Over a single generation, spanning from 1930 to 2000, the production of human-made chemicals surged significantly, skyrocketing by an astonishing 40,000%, surging from 1 million to a staggering 400 million tons. This unrelenting growth in hazardous waste generation raises pressing concerns about the environmental impact and sustainability. This also relates the semiconductor chemicals industry, as many hazardous chemicals are being used in semiconductor industry.
Opportunities: Development of new Semiconductor materials and Increase focus on sustainability
The semiconductor industry is in a perpetual quest for novel materials that can unlock greater efficiency and enhanced capabilities in semiconductor devices. This relentless pursuit of innovation is propelling the demand for cutting-edge semiconductor chemicals, which serve as essential tools for processing and optimizing these new materials. This synergy between materials exploration and the development of specialized chemicals is at the heart of advancing semiconductor technology. As semiconductor researchers delve into uncharted material territories, the demand for specialized semiconductor chemicals surges in parallel. These chemicals are indispensable tools for harnessing the potential of emerging materials. They facilitate precise material deposition, doping, and surface treatments, ensuring that the desired electrical and physical properties are realized. Semiconductor chemicals play a pivotal role in the synthesis and modification of new semiconductor materials. They serve as precursors, catalysts, and etchants during crystal growth, thin-film deposition, and surface engineering processes. This level of chemical precision is essential for creating semiconductor materials with tailored electronic characteristics. In a significant development reported by MIT in 2021, engineers at MIT have successfully produced high-quality thin films of a recently discovered semiconductor material family known as chalcogenide perovskites.
Challenges: Health risks in semiconductor chemicals manufacturing & stringent governmental regulations
The global semiconductor industry faces a significant challenge in maintaining the sound management of chemicals throughout the entire lifecycle of semiconductor production while simultaneously fostering ongoing innovation in semiconductor design and manufacturing. The semiconductor manufacturing process is exceptionally intricate, necessitating advanced manufacturing equipment, meticulously controlled environments, and the utilization of specialized chemicals to fabricate these sophisticated products. One of the foremost challenges arises from the varying laws and regulations governing chemicals used in semiconductor manufacturing and semiconductor products across different regions worldwide. Each jurisdiction may have distinct regulations and compliance requirements, creating a complex landscape for semiconductor companies that operate internationally. The semiconductor chemicals industry is subject to various regulations around the world to ensure the safe handling, transportation, and disposal of chemicals, as well as to protect the environment and public health. It’s important for semiconductor chemical manufacturers and users to stay informed about and comply with relevant laws and regulations in the regions where they operate. Non-compliance can result in legal liabilities, fines, and reputational damages.
Semiconductor Chemicals Market Ecosystem
Prominent companies in this market include well-established, financially stable manufacturers of wet room waterproofing solutions. These companies have been operating in the market for several years and possess a diversified product portfolio and strong global sales and marketing networks. Prominent companies in this market include Tokyo Ohka Kogyo Co., Ltd (Japan), JSR Corp (Japan), BASF SE (Germany), Solvay SA (Belgium), Dow, Inc (Michigan), Honeywell International, Inc (US).
Based on type, High performance polymers is projected to account for the second largest share of the Semiconductor chemicals market
High-performance polymers rank as the second-largest category in the global semiconductor chemicals market due to their exceptional properties and versatility. These polymers are in high demand for critical applications in the semiconductor industry, as they offer outstanding resistance to heat, chemicals, and wear, making them ideal for use in harsh manufacturing environments. They are crucial for creating advanced packaging materials, insulating layers, and components in semiconductor devices, where precision and durability are paramount. Additionally, the growth of emerging technologies like 5G, artificial intelligence, and autonomous vehicles has led to an increased demand for semiconductor components that can withstand higher temperatures and extreme conditions.
Based on end-use, Optoelectronics semicodncutor chemical end use is projected to account for the second largest share of the Semiconductor chemicals market
The optoelectronics segment ranks as the second-largest category in the semiconductor chemicals market based on end-use. Optoelectronics is growing in the semiconductor chemicals market because of the increasing demand for optoelectronic devices in a wide range of industries, including consumer electronics, automotive, medical, and industrial. Optoelectronic devices are used in a variety of applications, such as displays, lighting, sensors, and communication systems. The growth of optoelectronics is creating new opportunities for semiconductor chemical companies.
Based on application, Etching is projected to account for the second largest share of the Semiconductor chemicals market
The etching segment ranks as the second-largest category in the semiconductor chemicals market due to its critical role in shaping semiconductor components. It enables the precise removal of materials from semiconductor wafers to create intricate patterns and features, which are essential for the manufacturing of integrated circuits and other semiconductor devices. The continued drive for miniaturization and the development of advanced semiconductor designs, such as FinFET transistors and 3D NAND memory, has propelled the demand for precise etching processes. Moreover, environmental considerations and the need for sustainable manufacturing processes are promoting the development of greener and more environmentally friendly etching chemicals. The combination of precision, innovation, and environmental responsibility solidifies the etching segment's position as the second-largest category in the semiconductor chemicals market, reflecting its pivotal role in semiconductor fabrication and the industry's evolving landscape.
Asia Pacific is expected to be the fastest growing market during the forecast period.
Asia Pacific is indeed a dominant force in the global semiconductor market, it is essential to note that the region's significance goes beyond its position as the second-largest market. Asia Pacific not only leads in semiconductor manufacturing but also increasingly drives semiconductor innovation, research, and development. Countries like Taiwan, South Korea, and China have become global hubs for cutting-edge semiconductor production and technology advancement. Moreover, Asia Pacific's semiconductor supply chain plays a pivotal role, ensuring the timely and efficient delivery of semiconductor products to the global market. The region's strong government support, investment in research, and the presence of key semiconductor manufacturers make it a dynamic epicenter for the industry, influencing not only market size but also the trajectory of semiconductor technology and its applications worldwide.
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Key Market Players
The Semiconductor chemicals market is dominated by a few major players that have a wide regional presence. The key players in the Semiconductor chemicals market are Tokyo Ohka Kogyo Co., Ltd (Japan), JSR Corp (Japan), BASF SE (Germany), Solvay SA (Belgium), Dow, Inc (US), Honeywell International, Inc (US), FUJIFILM Holdings Corporation (Japan), Eastman Chemical Co (US), Merck KGaA (Germany), Sumitomo Chemical Co., Ltd (Japan), SK Inc. (South Korea), DuPont de Nemours, Inc. (US). In the last few years, the companies have adopted growth strategies such as Product launches, Investments, Acquisitions, and expansions to capture a larger share of the Semiconductor chemicals market.
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Report Metric |
Details |
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Years considered for the study |
2021-2028 |
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Base Year |
2022 |
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Forecast period |
2023–2028 |
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Units considered |
Value (USD Million/Billion), volume (Kiloton) |
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Segments |
Application, Type, end-use, and Region |
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Regions |
Asia Pacific, North America, Europe, rest of the world. |
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Companies |
Tokyo Ohka Kogyo Co., Ltd (Japan), JSR Corp (Japan), BASF SE (Germany), Solvay SA (Belgium), Dow, Inc (US), Honeywell International, Inc (US), FUJIFILM Holdings Corporation (Japan), Eastman Chemical Co (US), Merck KGaA (Germany), Sumitomo Chemical Co., Ltd (Japan), SK Inc. (South Korea), DuPont de Nemours, Inc. (US). |
This report categorizes the global semiconductor chemical market based on raw material, Type, uses, application, and region.
On the basis of Type, the semiconductor chemicals market has been segmented as follows:
- High Performance Polymers
- Acid & Base Chemicals
- Adhesives
- Solvents
- Others
On the basis of End-Use, the semiconductor chemicals market has been segmented as follows:
- Integrated Circuits (ICS)
- Discrete Semiconductor
- Optoelectronics
- Sensors
On the basis of Application, the semiconductor chemicals market has been segmented as follows:
- Photoresist
- Etching
- Deposotion
- Cleaning
- Doping
- Others
On the basis of region, the semiconductor chemicals market has been segmented as follows:
- Asia Pacific
- Europe
- North America
- Rest Of World
Recent Developments
- In January 2023, JSR Corporation made a significant announcement regarding its subsidiary, JSR Electronic Materials Korea. The company disclosed its intention to acquire further shares of JSR Electronic Materials Korea Co., Ltd. (JEMK), with the ultimate objective of establishing complete ownership of JEMK as a wholly-owned subsidiary within the JSR Corporation portfolio. Notably, JEMK currently serves as the sales agent and distributor for JSR's Electronic Materials business operations in Korea.
- In June 2023, NLM Photonics, a semiconductor company utilizing its innovative hybrid electro-optic modulation technology to transmit data more efficiently while conserving power, has secured $1 million in additional funding. This funding will be used to accelerate product commercialization efforts, including collaboration with semiconductor fabrication facilities and large-scale data center operators. Tokyo Ohka Kogyo Co., LTD, along with another company, spearheads this latest round of investment.
- In November 2022, BASF has inaugurated a brand-new Research and development (R&D) facility located within Ansan, South Korea, known as the Engineering Plastics Innovation Center (EPIC). This state-of-the-art facility serves as the consolidated hub for BASF's R&D team, encompassing expertise acquired through the recent acquisition of Solvay's polyamide business, alongside other fresh competencies. Additionally, the facility is home to a dedicated Consumer Electronics Competency Center (CECC).
- In July 2021, BASF has entered into an agreement with Zhejiang Jiahua Energy Chemical Industry Co. Ltd. ("Jiahua") and its wholly-owned subsidiary Zhejiang Jiafu New Material Technology Co. Ltd. The agreement aims to significantly increase the production capacity of electronic-grade sulfuric acid in Jiaxing, China. This substantial investment, totaling a double-digit million euros, is set to more than double the current sulfuric acid production capacity of the company in China. The expansion project is strategically positioned to cater to the rapidly growing semiconductor industry in the country and is scheduled for completion by the year 2023.
Frequently Asked Questions (FAQ):
What are the factors influencing the growth of the Semiconductor chemicals market?
The growth of this market can be attributed to the Increasing demand from emerging industries and growing awareness of the benefits of semiconductor chemicals.
Which are the key applications driving the Semiconductor chemicals market?
The sectors driving the demand for Semiconductor chemicals are photoresist, etching, deposition, cleaning, doping, others.
Who are the major manufacturers?
Major manufacturers include Tokyo Ohka Kogyo Co., Ltd (Japan), JSR Corp (Japan), BASF SE (Germany), Solvay SA (Belgium), Dow, Inc. (US), Honeywell International, Inc (US) among others.
What will be the growth prospects of the Semiconductor chemicals market?
Technology Advancements in the Electronics Industry and booming semiconductor demand resulting in an increased need for semiconductor chemicals.
Which end-use segment having the largest market share in the specialty advanced ceramics market ?
Integrated circuits, end-use segment covers the largest market share in the market. .
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The study involved four major activities in estimating the market size of the semiconductor chemical market. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, the market breakdown and data triangulation procedures were used to estimate the market size of the segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources have been referred to for identifying and collecting information for this study. These secondary sources include annual reports, press releases, investor presentations of companies, white papers, certified publications, trade directories, certified publications, articles from recognized authors, gold standard and silver standard websites, and databases.
Secondary research has been used to obtain key information about the value chain of the industry, monetary chain of the market, the total pool of key semiconductor chemical, market classification and segmentation according to industry trends to the bottom-most level, and regional markets. It was also used to obtain information about the key developments from a market-oriented perspective.
Primary Research
The semiconductor chemical market comprises several stakeholders in the value chain, which include raw material suppliers, manufacturers, and end users. Various primary sources from the supply and demand sides of the semiconductor chemical market have been interviewed to obtain qualitative and quantitative information. The primary interviewees from the demand side include key opinion leaders in end-use sectors. The primary sources from the supply side include manufacturers, associations, and institutions involved in the semiconductor chemical industry.
Primary interviews were conducted to gather insights such as market statistics, data of revenue collected from the products and services, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to chemistry, application, and region. Stakeholders from the demand side, such as CIOs, CTOs, and CSOs were interviewed to understand the buyer’s perspective on the suppliers, products, component providers, and their current usage of semiconductor chemical and future outlook of their business which will affect the overall market.
The breakdown of profiles of the primary interviewees is illustrated in the figure below:
Note: Tier 1, Tier 2, and Tier 3 companies are classified based on their market revenue in 2022 available in the public domain, product portfolios, and geographical presence.
Other designations include sales representatives, production heads, and technicians.
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Market Size Estimation
The top-down approach was used to estimate and validate the size of various submarkets for semiconductor chemical for each region. The research methodology used to estimate the market size included the following steps:
- The key players in the industry have been identified through extensive secondary research.
- The supply chain of the industry has been determined through primary and secondary research.
- The global market was then segmented into five major regions and validated by industry experts.
- All percentage shares, splits, and breakdowns based on type, application, end-use, and region were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data was consolidated and added with detailed inputs and analysis and presented in this report.
Semiconductor Chemical Market: Bottum-Up Approach
Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis
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Semiconductor Chemical Market: Top-Down Approach
Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis
Data Triangulation
After arriving at the total market size from the estimation process semiconductor chemical above, the overall market has been split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics for all the segments and sub-segments, the data triangulation and market breakdown procedures have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market size has been validated by using both the top-down and bottom-up approaches and primary interviews. Hence, for every data segment, there have been three sources—top-down approach, bottom-up approach, and expert interviews. The data was assumed correct when the values arrived from the three sources matched.
Market Definition
The global semiconductor chemicals market is an industry that provides the basic chemicals needed to produce semiconductors. These chemicals are essential to the cleaning, etching, doping, and deposition steps in the fabrication of these semiconductors, which are essential parts in a variety of electronic devices. The increasing demand for semiconductors across a variety of industries, ongoing technological breakthroughs in the semiconductor industry, and the rising demand for electronic devices globally are some of the major reasons driving the semiconductor chemicals market's expansion. However, the market still has to deal with a number of issues, such as increased competition from low-cost producers and environmental issues associated to the use of semiconductor chemicals.
Key Stakeholders
- Semiconductor chemical Manufacturers
- Semiconductor chemical Traders, Distributors, and Suppliers
- Raw Type Suppliers
- Government and Private Research Organizations
- Associations and Industrial Bodies
- R&D Institutions
- Environmental Support Agencies
Report Objectives
- To define, describe, and forecast the size of the semiconductor chemical market, in terms of value and volume.
- To provide detailed information regarding the major factors (drivers, opportunities, restraints, and challenges) influencing the growth of the market.
- To estimate and forecast the market size based on application, type, end-use, and region.
- To forecast the size of the market with respect to major regions, namely, Europe, North America, Asia Pacific, rest of the world, along with their key countries.
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and their contribution to the overall market.
- To analyze opportunities in the market for stakeholders and provide a competitive landscape of market leaders.
- To track and analyze recent developments such as expansions, new product launches, partnerships & agreements, and acquisitions in the market.
- To strategically profile key market players and comprehensively analyze their core competencies.
Available Customizations
Along with the given market data, MarketsandMarkets offers customizations according to the company’s specific needs. The following customization options are available for the report:
Regional Analysis
- Further breakdown of a region with respect to a particular country or additional application
Company Information
- Detailed analysis and profiles of additional market players
Tariff & Regulations
- Regulations and impact on semiconductor chemical market
By Form Analysis
- Market size for semiconductor chemical in terms of value and volume
Growth opportunities and latent adjacency in Semiconductor Chemical Market