Product Code: 66573
The Wet Chemicals Market for Electronics and Semiconductor Applications was estimated at over USD 1.4 billion in 2020 and the market is projected to register a CAGR of more than 6.5% during the forecast period (2021-2026).
The Wet Chemicals Market for Electronics and Semiconductor Applications was hampered by the COVID-19 pandemic. Due to lockdowns in various countries and social distancing measures, the consumption of electronic products increased. According to JEITA, the production of global electronics products such as laptops, mobiles, and semiconductors amongst others, and information technology has increased and is expected to reach USD 3,175 billion by the end of 2021, which in turn has positively impacted the market demand for the wet chemicals market for electronics and semiconductor applications.
- Over the medium term, rising demand from modern technology industries and surging demand for hydrogen peroxide from the semiconductor industry are expected to drive the growth of the market studied.
- However, on the flip side, waste management of semiconductors is anticipated to hinder the growth of the market studied.
- By product type, the hydrogen peroxide segment dominated the overall market.
- By geography, Asia-Pacific dominated the global market. It is also expected to register the fastest CAGR over the forecast period.
Key Market Trends
Increasing Demand from Semiconductor Application
- Wet chemicals are extensively used in semiconductors for cleaning and etching processes. The cleaning process refers to the removal of contaminants from the wafer surface, and to control chemically grown oxide on the wafer surface. The types of contaminants available could be particles, inorganic and organic compounds, and impurities. Whereas, wet etching is an etching process of solid materials in a chemical solution. Wet etching is a process of using etchants or liquid chemicals to take off the substrate material.
- The electronic grade hydrogen peroxide has prime application in the semiconductor industry, which has grown significantly in the past years and is likely to create growth opportunities for electronic grade hydrogen peroxide in the coming years. Consequently, hydrogen peroxide is considered to be one of the significant growth drivers for the semiconductor industry, which is, therefore, likely to increase the demand for wet chemicals during the forecast period.
- The manufacturing and processing of semiconductor wafers mainly involve wet chemistry steps, where hydrogen peroxide (H2O2) is used in combination with other chemicals for cost-effective cleaning and etching.
- According to the Semiconductor Industry Association (SIA), the global semiconductor industry sales were USD 439.0 billion in 2020, an increase of 6.5% compared to the 2019 total of USD 412.3 billion, which led to an increase in demand for the wet chemicals market for electronics and semiconductor applications.
- The United States is a significant country in the designing and manufacturing of the semiconductor industry. Investments in the country by major players are set to fuel the semiconductor market, which, in turn, will stimulate the growth of wet chemicals industry.
- For instance, five leading firms formed the U.S-based consortium to pursue the transition to 450 mm wafers. The consortium includes some major firms, such as Intel, IBM, Taiwan Semiconductor Manufacturing Company, SAMSUNG, and Global Foundries. This consortium focuses on developing and manufacturing the required equipment to process 450 mm wafers. The increase in wafer sizes will be one of the key trends, which will gain traction in the semiconductor wafer polishing and grinding equipment market over the forecast period.
- Germany is the largest semiconductor chip manufacturer in Europe. It is estimated that one in every three semiconductors manufactured in the European region is manufactured in Germany. German semiconductor manufacturer, Infineon Technologies AG, started the volume production for the Easy 1B, the first full-SiC module. The company is also showcasing additional module platforms for the 1200 V CoolSiC MOSFET family. The new 1200 V SiC MOSFET has been optimized to combine high reliability with performance.
- All the aforementioned factors, in turn, are expected to increase the demand for wet chemicals in the electronics and semiconductor applications.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region dominated the global market share. With the growing demand for electronics in countries, such as China, India, and Japan, the usage of wet chemicals is increasing in the region.
- The semiconductors market in China is currently lagging. Currently, China is the net importer of semiconductor chips, with China manufacturing less than 20% of semiconductors used. As part of the country's ambitious "Made in China 2025" plan, the Chinese government has announced its decision to reach an output of USD 305 billion by 2030, and therefore meet 80% of its domestic demand.
- Similarly, over 90% of the IC's that are currently being used by China are either imported or domestically manufactured by foreign chipmakers.
- The Chinese government has declared to invest above USD100 billion over the following decade to catch up with the United States in semiconductor technology.
- According to India Electronics and Semiconductor Association, the semiconductor component market in the country is expected to be worth USD 32.35 billion by 2025, displaying a CAGR of 10.1% over the forecast period. Moreover, the ongoing Make In India initiative by the government, is expected to result in investments in the semiconductor industry in the country.
- Also, Japan currently has about 30 semiconductor fab industries that are involved in the manufacturing of various semiconductor chips. Japan's semiconductor supply chain provides one-third of the world's semiconductor manufacturing equipment and more than half of the industry's materials.
- Various chip manufacturers across Japan have reduced the production to avoid excess inventories amid uncertainties stemming from China-U.S. trade frictions.
- Hence, the market scenario in the region is expected to boost the the overall demand of the wet chemicals market through the forecast period.
The wet chemicals market for electronics and semiconductor applications is highly concentrated, with the top five players accounting for over 60% of the market share. Major players in the market include KMG Chemicals, BASF SE, Avantor Inc., Honeywell International Inc., and KANTO KAGAKU, amongst others
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TABLE OF CONTENTS
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Drivers
- 4.1.1 Rising Demand from Modern Technology Industries
- 4.1.2 Surging Demand for Hydrogen peroxide from the Semiconductor Industry
- 4.2 Restraints
- 4.2.1 Waste Management for Semiconductors
- 4.2.2 Impact of COVID-19 Pandemic
- 4.3 Industry Value-Chain Analysis
- 4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5 MARKET SEGMENTATION
- 5.1 Product Type
- 5.1.1 Acetic Acid
- 5.1.2 Isopropyl Alcohol (IPA)
- 5.1.3 Hydrogen Peroxide
- 5.1.4 Hydrochloric Acid
- 5.1.5 Ammonium Hydroxide
- 5.1.6 Hydrofluoric Acid
- 5.1.7 Nitric Acid
- 5.1.8 Phosphoric Acid
- 5.1.9 Sulfuric Acid
- 5.1.10 Others
- 5.2 Application
- 5.2.1 Semiconductor
- 126.96.36.199 Cleaning
- 188.8.131.52 Etching
- 5.2.2 Other Electronic Applications
- 184.108.40.206 Integrated Circuit (IC) Manufacturing
- 220.127.116.11 Printed Circuit Boards (PCB) Manufacturing
- 5.3 Geography
- 5.3.1 Asia-Pacific
- 18.104.22.168 China
- 22.214.171.124 India
- 126.96.36.199 Japan
- 188.8.131.52 South Korea
- 184.108.40.206 Rest of Asia-Pacific
- 5.3.2 North America
- 220.127.116.11 United States
- 18.104.22.168 Canada
- 22.214.171.124 Mexico
- 5.3.3 Europe
- 126.96.36.199 Germany
- 188.8.131.52 United Kingdom
- 184.108.40.206 France
- 220.127.116.11 Russia
- 18.104.22.168 Rest of Europe
- 5.3.4 Rest of the World
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
- 6.4 Company Profiles
- 6.4.1 Avantor Inc.
- 6.4.2 BASF SE
- 6.4.3 Eastman Chemical Company
- 6.4.4 FUJIFILM Corporation
- 6.4.5 Honeywell International Inc.
- 6.4.6 KANTO KAGAKU
- 6.4.7 KMG Chemicals (Cabot Microelectronics)
- 6.4.8 Kredence Materials
- 6.4.9 Linde plc
- 6.4.10 Solvay
- 6.4.11 T.N.C. INDUSTRIAL CO. LTD
- 6.4.12 Technic
- 6.4.13 Zhejiang Kaisn Fluorochemical Co. Ltd
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Recycling of Semiconductors
- 7.2 Favorable Growth Market for Semiconductors In Malaysia