Product Code: 68100
The chemical mechanical planarization (CMP) slurry market is expected to register a CAGR of 7% during the forecast period (2020 - 2025). The global market for chemical mechanical planarization(CMP) slurry is expected to grow significantly over the forecast period due to the increasing technological advancements in fabrication and semiconductor processes, mainly to enhance the performance of the semiconductor. The increasing investment in semiconductor wafer fabrication materials by manufacturers for product innovation is primarily driving the studied market growth.
- The United States, Korea, Japan, China, and Singapore are some of the major semiconductor chip producers, which contribute significantly to the studied market growth in terms of consumption and investment. CMP has become a standard manufacturing process practiced by the semiconductor manufacturers to fabricate integrated circuits (IC) and memory disks. Therefore, the growing adoption of these components in markets, like IoT, automotive, and 5G, among others, may also drive the demand for the CMP slurries over the forecast period.
- CMP has become a standard manufacturing process practiced by the semiconductor manufacturers to fabricate integrated circuits (IC) and memory disks. Therefore, the growing adoption of these components in markets, like IoT, automotive, and 5G, may also drive the CMP slurries' demand over the forecast period.
- CMP has played a significant role in making transistors, and other interconnect devices smaller for building a new generation of chips. The growing adoption of transistors and ongoing development in the industry, down to the 5 nm node from the 14 nm node, also presents massive opportunities for the market vendors.
- Asian countries play a significant role in market development, particularly China, which is also building a homegrown chip program for the adoption of local semiconductors in 70% of its products by 2025, up from 16%. Although the recent coronavirus outbreak may affect the industry's supply chain due to more long-term investment in the sector, the industry is expected to recover quickly. For instance, the National IC Investment Fund was introduced in 2014 by the Chinese government to support the semiconductor sector and raised around USD 23 to 30 billion to pay for the second phase in 2018.
- The recent COVID-19 pandemic outbreak has created economic turmoil for small, medium, and large-scale industries worldwide. The virus's outbreak has also impacted the demand for smart gadgets due to nation-wide lockdowns, significantly impacting the production and supply chain of these gadgets. Furthermore, with the resumption of these gadgets' production coupled with the slowdown of the virus spread, an exponential increase in the demand for electronic gadgets is expected to open up various market opportunities for the CMP slurry at the global level.
Key Market Trends
Memory Occupies the Significant Shares
- Flash memory has been an essential driving force due to the increasing popularity of mobile devices with large storage requirements. Also, emerging technology such as NVM (Non-Volatile Memory), which offers better speed and durability than traditional NAND is expected to poise the memory growth. With such enhancements, the CMP process would play a significant role, which would drive the CMP slurry market.
- As the NAND technology moved from 2D to 3D, additional CMP steps were added, such as channel poly CMP and staircase (or ILD) CMP. Channel poly CMP is to polish many materials simultaneously, such as SiN, oxide, and poly-Si. Therefore, it needs an individual material rate tunability to meet the final topography requirement. It is thereby increasing the demand for the CMP slurry market.
- Flash memory storage has become an essential component in smartphones, not only for consumers whose demand for storage keeps increasing with content creation but also for OEMs from the bill of materials (BoM) cost perspective. The NAND flash demand has been growing exponentially, primarily driven by the growth of the average capacity in smartphones. With the increasing adoption of 5G enabled Smart Phones is expected to increase further demand for market studied in 2020.
Taiwan is Expected to Emerge as a Major Player in the Market
- The expanding semiconductor manufacturing in the country is mainly driving the adoption of CMP slurry in the country. According to the SEMI, a 20% increase in the purchase of semiconductor production equipment in the third quarter of 2019 helped the country regain its status as the world's biggest semiconductor equipment market in the world. In 2019, the country's semiconductor manufacturing equipment purchases during the period rose by 34% from a year earlier. Taiwan was ranked third in semiconductor equipment purchases in 2019, behind South Korea and China.
- Taiwan-based TSMC, the world's largest contract chipmaker with a more than 50% share in the global market, is also playing a significant role in creating demand for the CMP slurries. The growing advancement in the telecom industry, due to 5G and in the automotive industry, is also fuelling the company's product demand, hence, also developing the scope for the studied market vendors. For instance, Huawei also buys Taiwanese equipment for 5G infrastructure. The company's 5G base stations are mostly equipped with TSMC semiconductors. TSMC is also a client of Cabot Microelectronics, one of the significant vendors in the studied market.
- However, the company is witnessing challenges from China's decision to become more self-sufficient in semiconductor production amid its trade war with the United States. Also, the US government is urging many Taiwan companies to curb chip exports to China or Huawei.
- Similarly, Taiwan itself is also investing in 5G, with its strategy for 5G rollout. Since the semiconductor manufacturing sector mainly drives the initiative, it is expected to keep up with its IC design customers' demands for different types of digital signal processors for 5G and 5G's high-frequency radio modem circuits. This is expected to bring advancement into the market studied too.
The chemical mechanical planarization (CMP) slurry market is moderately consolidated, with top players accounted for more than 50% of the market share. The market vendors are adopting partnership strategies, product innovations to bring development to the market studied. Some of the recent development in the market are:
- March 2020 - US-based ACM Research Inc. launched the Ultra SFP ap tool for advanced packaging solutions. It leverages ACM's stress-free polishing (SFP) technology and integrates it with CMP and wet-etch chambers into a single system. It is designed to save more than 80% of slurry for metal polishing in 2.5D and 3D package applications.
- January 2020 - Entegris Inc, acquired Sinmat, a CMP slurry manufacturer. Sinmat's Chemical Mechanical Planarization (CMP) slurries are used for polishing ultra-hard surface materials, including SiC (silicon carbide) and GaN (gallium nitride). SiC and GaN are substrates utilized in the fast-growing end-markets of power electronics and advanced communications. This acquisition has enhanced the product offerings of Entegris Inc.
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TABLE OF CONTENTS
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHT
- 4.1 Market Overview
- 4.2 Industry Attractiveness - Porter's Five Force Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers/Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Intensity of Competitive Rivalry
- 4.3 Industry Value Chain Analysis
- 4.4 Applications - Copper and Barrier, Cobalt, Tungsten, Oxide, Ceria, and Other Applications
- 4.5 Assessment of COVID-19 Impact on the Chemical Mechanical Planarization (CMP) Slurry Market
5 MARKET DYNAMICS
- 5.1 Introduction to Market Dynamics
- 5.2 Market Drivers
- 5.2.1 Increased Use of 3D structures in ICs and Growing Importance of CMP Technology
- 5.3 Market Challenges
- 5.3.1 Dynamics Nature of the Demand from the Memory Industry
6 MARKET SEGMENTATION
- 6.1 By Device Type
- 6.2 By Country
- 6.2.1 South Korea
- 6.2.2 Taiwan
- 6.2.3 United States
- 6.2.4 Japan
- 6.2.5 Europe
- 6.2.6 China
- 6.2.7 Rest of the World
7 COMPETITIVE LANDSCAPE
- 7.1 Vendor Ranking Analysis
- 7.2 Company Profiles
- 7.2.1 Cabot Microelectronics Corporation
- 7.2.2 Hitachi Chemical Co Ltd.
- 7.2.3 Fujifilm Corporation
- 7.2.4 Fujimi Corporation
- 7.2.5 Dow Inc.
- 7.2.6 Merck KGaA (Including Versum Materials)
- 7.2.7 Saint-Gobain Ceramics & Plastics, Inc.,
8 INVESTMENT ANALYSIS
9 FUTURE OUTLOOK AND OPPORTUNITIES