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Semiconductor fabrication materials are used to pattern semiconductor wafers. The process is used to manufacture integrated circuits on the semiconductor with electric currents passable through them. Materials meant to connect and protect the die are called packing materials. Since the advent of semiconductors, there has been a move towards miniaturization, with a view to make consumer electronics more mobile and powerful simultaneously. 

China makes, America takes – ideal combo in semiconductor fabrication material market

It wouldn’t be an exaggeration to call the US the cradle of innovation in the semiconductor industry, and thus, North America accounts for the lion’s share of the semiconductor fabrication material market. Although consumption of semiconductors has largely shifted towards APAC, the US holds its own in the design and manufacturing – a key component in the semiconductor fabrication material market. This innovative approach has allowed the US to prevent the outsourcing of high-value production and design work to low-cost nations. This is demonstrated by the fact that the country is the largest market consuming China’s exports. GaN as a form of semiconductor fabrication material has been extensively deployed in wireless applications, power supplies, and LED lighting equipment. GaN is characterized by its high performance, high-efficiency and high-frequency. Therefore, North American companies are adopting GaN in recent times.

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Can India beat China’s government-led manufacturing at its own game?

In terms of manufacturing semiconductor fabrication material, APAC accounts for a large percentage of the worldwide semiconductor fabrication material market. China has the advantage of both relatively cheap labor coupled with the infrastructure and technical expertise required to manufacture semiconductor fabrication material. The policy framework devised by the State Council of the PRC intends to manufacture end-to-end semiconductor packing solutions – a top priority for the government. India, through similar government initiatives, is attempting to create an indigenous semiconductor industry, but the subcontinent is still far behind China, Korea, and Taiwan.

Silicon wafers ahead of other kinds of fabrication materials

When it comes to fabrication material, the semiconductor fabrication material market can be subdivided into photomasks, photoresists, wet chemicals, CMP slurry and pads, gases, sputter targets, photoresist ancillaries, and silicon wafers. Silicon wafers are the most popular type of fabrication material and the selection of the material depends on factors such as intended usage, end-user industry, and purpose. 

Consumer eyes glued to their smartphones benefiting semiconductor fabrication material

Semiconductor fabrication material are primarily used in the consumer electronics industry. With an ever-increasing demand for smartphones in mobile-first APAC nations, semiconductor fabrication material is used to great effect as a building block. Along with consumer electronics, the aerospace industry is a strategically important sector that virtually all nations focus their efforts on. Computer and communication devices used for both personal and professional reasons are anticipated to drive the global semiconductor fabrication material market in the decade from 2016 to 2026.

Massive grants by Hemlock Semiconductor raises its stature

Some of the companies actively involved in the global semiconductor fabrication material market have been exhaustively profiled in this report. They are Alent, Hemlock Semiconductor, JSR, Linde AG, Dow, and Air Liquid SA. In June 2020, Hemlock Semiconductor Operations awarded special grants to diverse communities dispersed across the Midland, Bay, and Saginaw counties in the US. The recipients were chosen in May with a total grant of just under USD$ 100,000. HSC has previously awarded grants at the beginning of 2020 of the same amount to improve learning opportunities and assist school safety.

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COVID-19 – Try to run business as usual in short run; Aim to transform in the long run

In 2019, China accounted for more than half of semiconductor consumption and of an approximately US$ 230 billion this year, almost USD$ 190 was from foreign companies. COVID-19 has already had an impact on the entire semiconductor fabrication material value chain, right from raw material to final product. In the short-run, companies may need to implement business continuity plans and try to ensure a ‘business as usual’ approach to the maximum extent possible. COVID-19 has served as a reminder for organizations to revisit BCP and safety plans to cover all possible contingencies. In the long run, semiconductor fabrication material companies must evaluate their operating model to address the lack of resiliency and risks associated with single-source manufacturing. Semiconductor companies could opt for an ‘agile supply node network’ that is flexible and permits multi-pathways eliminating single points of failure. This provides regional scale where capacity is concentrated in near-regions. While the warning signs of a globally disruptive pandemic like COVID-19 were long present, perhaps semiconductor fabrication material companies will now learn to diversify their bets and establish agile semiconductor networks that are far more resilient to such future shocks.

KEY QUESTIONS ANSWERED IN THE REPORT

  • What is the market size and growth rate of the global and regional markets by various segments?
  • What is the market size and growth rate of the market for selective countries?
  • Which region or sub-segment is expected to drive the market during the forecast period?
  • What factors are anticipated to impact demand and supply trends in the market during the forecast period? 
  • What factors are likely to drive market revenue growth during the forecast period?
  • What are the key technology and other trends shaping the market?
  • What are the key opportunities in the market?
  • What are some of the strategies implemented by key companies operating in the market?
  • What is the COVID-19 impact on the market?

 

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