Semiconductor Oxidation Furnaces Market Size, Share, Opportunities, And Trends By Type (Vertical, Horizontal), By Application (Integrated Circuits, Discrete Devices, Others), And By Geography - Forecasts From 2023 To 2028

The semiconductor oxidation furnaces market is estimated to grow at a CAGR of 4.2% during the forecast period.

The semiconductor oxidation furnace market is estimated to grow at a high pace. Semiconductor oxidation furnaces are used to provide the required levels of oxidation atmosphere for the oxidation process of semiconductors, and they also help in achieving the desired design for the semiconductor oxidation process, which is a vital part of the overall processing process for semiconductors. The oxidation of the wafer surface is the first step in the semiconductor device fabrication process, and it helps provide insulation and passivation layers. 

Market Drivers:

• Growth in the electronics industry.

There is a noticeable growth in the electronics industry due to research and development efforts. For instance, the electronics industry in India is expected to grow by over 600% by 2025, according to a report published by National Investment Promotion and Facilitation Agency in 2021. Many daily-use electronic products like smart televisions and smartphones are growing in demand globally, and their manufacturing involves using semiconductors to control and manage the flow of electric current. Therefore, as the need for consumer electronics grows, the demand for semiconductors will grow proportionately, boosting the semiconductor oxidation furnace market growth.

• Demand for semiconductors by the automotive industry.

Semiconductors also find uses in growing industries such as automotive and healthcare which helps further boost the semiconductor oxidation furnace industry size. Semiconductors are used extensively in modern automobiles for advanced driver assistance system technologies and other smart features such as autopilot driving and parking assistance. The global production of motor vehicles has grown by 6% from 2021 to 2022, per the International Organization for Motor Vehicle Manufacturers. Therefore, as the production and sale of automobiles grow, the demand for semiconductor oxidation furnaces for semiconductor oxidation purposes will continue to grow steadily.

Restraints to the industry’s expansion:

• Technical complexities

Another additional barrier to the industry's growth is the need for technically skilled and competent labor to operate the semiconductor oxidation furnaces during fabrication. The lack of professional operators can act as a barrier to growth; additionally, hiring skilled labor adds to the overall cost of the product, which further reduces its affordability.

Products Offerings:

• Centrotherm offers its c.OXIDATOR oxidation furnace for high-temperature oxidation has been specially designed to carry out silicon carbide oxidation. However, it can also be used for silicon oxidation. The product is available in different versions, allowing multiple wafer sizes up to 200mm. The oxidation furnace also supports wet oxidation and can handle temperatures up to 1500 degree Celsius. The product is designed to offer a high level of performance at a smaller carbon footprint and is relatively more affordable and flexible in process usage.
• ASM International offers its SONORA vertical furnace, a 300mm vertical furnace that can be used for logic and memory applications. It is capable of wafer processing in both atmospheric and low-pressure thermal conditions. The product offers high productivity at lower energy consumption levels and better reliability and ease of use.

The Asia Pacific semiconductor oxidation furnace market is expected to witness robust growth over the forecast period. 

Asia Pacific is expected to constitute a significant share of the semiconductor oxidation furnace industry, and similar trends are expected to be followed in the forecast period. This market share is owed to the growth in electronics and automotive sectors in the region's major economies, such as China and India, as well as the growing electronics industry bases in countries like China, South Korea, and Japan.

China and Taiwan are lucrative markets.

China holds one of the largest electronics production bases in the world and is also considered one of the largest manufacturing hubs globally. These are two key factors that will continue to increase the demand for semiconductors in Chinese markets as growing industries such as electronics, healthcare, defense, automotive, etc., will continue to demand more semiconductors which will help in the growth of semiconductor oxidation furnace market size. In India, the focus on domestic production has led to increased industrial development in all sectors, proportionately driving the demand for semiconductors.

Forecast for the Rest of the World.

It is anticipated that North American and European markets will experience moderate growth. The semiconductor oxidation furnaces industry in the United States is expected to see a surge in demand due to an increase in industrial operations in electronics, automobiles, and specifically electric vehicles and defense sectors, as this growth in these industries will drive the demand for semiconductor materials.

Market Developments:

• In October 2021, Yield Engineering Systems, Inc. announced the acquisition of the semiconductor equipment business of Swedish manufacturer, Kanthal. Yield Engineering is involved in manufacturing process equipment for advanced semiconductor packaging, and this acquisition is expected to add to their growing semiconductor portfolio, especially in the thermal processing area, by using Kanthal’s furnace technologies.
• In January 2023, Amtech Systems announced the acquisition of Entrepix, Inc., a global leader in wafer cleaning and chemical mechanical polishing. The acquisition is expected to enhance Amtech’s market share in the front-end wafer processing market, with the inclusion of silicon carbide applications.

Semiconductor Oxidation Furnaces Market Scope:

Market Segmentation:

• By Type
  • Vertical
  • Horizontal
• By Application
  • Integrated Circuits
  • Discrete Devices
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Taiwan
    • Others