The global electronic wet chemical market is estimated to grow at a CAGR of 4.66% to reach a market size of US$3,083.781 million in 2025 from US$2,346.537 million in 2019. Wafer cleaning is a critical process in large scale wafer manufacturing. The primary objective of wafer cleaning is to remove chemical and particular impurities without damaging the wafer surface. It is important to ensure that the surface of the wafer is not negatively impacted in the cleaning and etching process since yield of a wafer is inversely related to the defect density from processing done on the wafer. Moreover, the global wafer production is influenced by the worldwide electronic production. In fact, the global electronic and IT production has increased from US$2,340 billion in 2010 to US$2,920 billion in 2019 (source: Japan Electronics and Information Technology Industries Association), with semiconductor manufacturing accounting for approx. 14% of it.
Increasing adoption of consumer electronics and the availability of a variety of products is inducing the demand for consumer electronics which, simultaneously, is expected to further push the demand for semiconductor during the forecast period. In addition, the rising household consumption expenditure also plays an important role in increasing the demand for consumer electronics, which further increases the demand for wafers. For instance, as per the World Bank, the household’s final consumption expenditure has grown remarkably from US$ 2.732 trillion in 2011 to US$ 4.698 trillion by 2017. Furthermore, rapid urbanization and increasing disposable income in developing economies like India, China and Brazil are anticipated to increase the demand for consumer electronics which will further widen up the growth opportunities for vendors and manufacturers during the forecast period. The growing disposable income is expected to boost the demand for cameras, tablets and notebooks significantly during the course of the forecast period. As a result, many end-user manufacturers are expanding their production capacity and product offering to cater to the growing demand. For instance, ASUSTeK Computer Inc. launched the ASUS chromebook C223, C423, and C523 in October 2018. Similarly, in July 2018, Fujifilm Corporation announced that it will boost its production capacity for interchangeable lenses to address the growing demand for mirrorless cameras globally.
Simultaneously, the anticipated commercialization of 5G during the course of the forecast period and the focus on providing high speed internet services is expected to increase the investment in the development of internet infrastructure globally, which in turn, is anticipated to boost the production of different communication components and devices. In fact, in July 2017, Netgear®Inc., launched Gigabit Docsis 3.1 cable modem router that has the ability to deliver high speed internet. Moreover, in September 2017, Vodafone Group announced its plans of investing $2.4 billion in Germany to provide around 13.7 million new ultrafast broadband connections by 2021.
In fact, consumer electronics and communication industries are estimated to cumulatively constitute approx. 65% of the global silicon wafer market – the most widely used wafer, with global market estimated to grow at a CAGR of roughly 4% between 2018-2024 (source: Knowledge Sourcing Intelligence Analysis).
Moreover, the growing trend of miniaturization and the corresponding increase in the chip complexity is further aiding the demand for electronic wet chemical, more specifically, for pure hydrogen peroxide.
There is a growing trend of shifting manufacturing facilities from the developed region to Asia Pacific, more specifically, in countries like India, China, Vietnam, and Philippines among others on account of the ability to offer skilled and relatively inexpensive labor and cheap electricity, thus, attracting, significant foreign investment. Moreover, the production of electric vehicle is rapidly increasing in China rapidly. In fact, there were more than 3 million electric vehicles on road globally, 40% of which were in China (source: International Energy Agency). Moreover, the production of renewable energy equipment has also been increasing in the region on account of growing investment in installation of renewable energy. For instance, Risen Energy has recently announced its plans of investing US1.58 billion in the expansion of its solar PV cell and module production operations in China.
Within the semiconductor, the major wafer supplier has been focusing on increasing the supply of 300mm wafer. The 200mm-300mm are the demanded silicon wafer size currently, with a growing shift from 200mm towards 300mm observed in the recent years, with the number of 300mm wafer plant projected to expand rapidly during the course of the forecast period. Moreover, according to Sumco, worldwide capacity utilization of 300mm silicon wafer is expected to be around 95% in 2019. Simultaneously, SK Siltron Co. Ltd has recently announced its plans to expand its wafer production capacity at its Gumi plant. On the other hand, in September 2017, GlobalFoundries announced its first RF SOI solution manufactured in 300mm wafers for its applications in 4G LTE and 5G applications, and the company also announced on February 2019 that this technology platform has delivered more than billion dollars of client design win revenue since the launch of this technology, which also shows the potential for the market to grow during the coming years. GLOBALFOUNDRIES and GlobalWafers Co., Ltd. announced in February 2020 that they have signed a memorandum of understanding (MOU) to develop a long-term supply agreement for 300mm silicon-on-insulator (SOI) wafers. Simlarly, Soitec a world-leading designer and manufacturer of innovative semiconductor materials, and Shanghai Simgui Technology Co., Ltd. (Simgui), a leading Chinese silicon-based semiconductor materials company, announced an enhanced partnership and an increase in annual production capacity of 200mm silicon-on-insulator (SOI) wafers from 180,000 to 360,000 at Simgui’s manufacturing facility in Shanghai, China, to better serve the growing global market for RF-SOI in mobile and Power-SOI products. The semiconductor industry in Japan has been growing over the years on account of growing production of end-user of application. In fact, the market for semiconductor manufactured equipment in Japan increased from US$ 1.25 billion in first quarter of 2017 to US$2.13 billion in the first quarter of 2018 (source: Semiconductor Equipment Association of Japan). This, in turn, is pushing the investment in order to increase the wafer production in the country. In fact, in October 2017, ON Semiconductor Corp. acquired the 40% in Fujitsu Semiconductor Limited 8-inch wafer fab, allowing the company to add capacity in the global footprint. Similarly, in July 2018, Showa Denko announced its plan expand the capacity to produce silicon carbide epitaxial wafer for power semiconductor devices.
Germany has been focusing aggressively on reducing its primary energy consumption, with the target of reducing energy consumption by 20% by 2020 as compared to the 2008 level. However, even though, the energy consumption has reduced over the year, the actual level of reduction is significantly below the expected level. Thus, it is projected that the efforts to push down the energy consumption will increase, which is expected to drive the production of energy efficient devices. As such, the production of energy efficient wafers such as GaN and SiC as compared to the silicon will increase in order to be incorporated in different electronic products. In fact, in 2017, Panasonic Automotive & Industrial Systems Europe showcased its latest technology portfolio based on gallium nitride at PCIM 2017 held in Germany, indicating a growing shift towards the energy efficient devices.
The memory industry in the North American region is anticipated to witness cyclical growth during the course of the forecast period on account of low growth of domestic manufacturing within the consumer electronics and communication industry. However, the recent efforts taken by the government of the United States to revive domestic manufacturing is projected to drive the memory in the country. Simultaneously, the improvement in the business environment and increasing trend of digitalization in Mexico is further augmented to push the demand for memory products.