Silicon EPI Wafer Market Size, Share, Opportunities, And Trends By Wafer Size (6 Inch, 8 Inch, 12 Inch, Others), By Application (LED, Power Semiconductors, MEMS-Based Devices, Others), By End-User (Automotive, Aerospace, Healthcare, Consumer Electronics, Others), And By Geography - Forecasts From 2024 To 2029

The silicon EPI wafer market was valued at US$3.265 billion in 2022 and is projected to expand at a CAGR of 5.71% over the forecast period to reach US$4.815 billion by 2029.

Silicon (SiC) is a promising alternative to silicon due to its wide bandgap and high-temperature tolerant properties, making it ideal for high-power, high-temperature, and high-frequency applications. Silicon Epitaxial Wafer (Epi Wafer) is a layer of single crystal deposited onto a single crystal silicon wafer, used for thin film transistors. This layer can be prepared using methods like vapor phase epitaxy, liquid phase epitaxy, and molecular beam epitaxy. Chemical vapor deposition (CVD)-based vapor phase epitaxy is the main growth process for silicon epitaxial wafers, using common sources of SiCl4, SiHCl3, SiH2Cl2, and SiH4.

The market of silicon epi wafers will witness growth with the growing use of IoT devices and advancement in semiconductors. The increasing use of consumer electronics will also promote the market growth. Silicon Epi wafers also play an important role in cutting-edge technologies like 5G, renewable energy, and artificial intelligence (AI). Further, digitalization and rising miniature electronics demand will boost advancement for silicon wafers. The requirement for power-efficient devices and products in major end-user sectors will also fuel the demand for the silicon epi wafer market in the forecast period.

SILICON EPI MARKET DRIVERS:

• Increasing demand for advanced semiconductor devices is expected to boost the market growth.

The rising demand for high-performance, advanced, and power-efficient semiconductor devices is a major factor driving the Silicon EPI wafer industry globally. Advanced semiconductors are being utilized and are a pivotal part of many industries, such as automotive, telecommunications, and consumer electronics. Technological advancements like 5G, AI, IoT, and electric vehicles employ silicon epi wafers as an integral part of their functioning.

In January 2024, Infineon Technologies and Wolfspeed extended their long-term 150mm silicon carbide wafer supply agreement, signed in February 2018. The extended partnership includes a multi-year capacity reservation agreement, contributing to Infineon's supply chain stability and meeting the growing demand for silicon carbide semiconductor products for automotive, solar, EV, and energy storage systems. This expansion and extension of the agreement will help meet the growing demand for silicon carbide semiconductors in various industries.

Silicon carbide-based power solutions are gaining popularity in various markets due to their smaller, lighter, and cost-effective designs. These solutions enable efficient energy conversion and new clean energy applications. Infineon is diversifying its supplier base to secure high-quality silicon carbide substrates.

• Expansion of consumer electronics demand will bolster the silicon EPI wafer market

According to the Japan Electronics and Information Technology Industries Association data of December 2022, the global electronics and information technology industries grew by 3% in 2023, reaching $3,526.6 billion. This growth is expected to continue due to growth in solution services and electronic components as countries invest in digitalization to transform industries.

Additionally, Japanese electronics and IT companies' global production was expected to grow due to increased demand for digital innovation, including data linkage and automation, and environmental technologies aimed at decarbonization. It was predicted to rise by 8% in 2022 to ¥39,500 billion and by 3% in 2023 to ¥40,800 billion. This rise in electronics and information technology will contribute to the silicon wafer industry in the years ahead.

The consumer electronics industry is expected to propel and boost silicon EPI wafer demand in the forecast period. Consumer electronics include tablets, wearable electronics, smartphones, and smart home appliances, which use semiconductors and will ultimately lead to the requirement for Silicon EPI wafers.

SILICON EPI MARKET GEOGRAPHICAL OUTLOOK

• The Asia Pacific region is expected to be a major silicon EPI wafer marketplace

Asia Pacific is seeing increasing demand for silicon epi wafers for utilization in various sectors for devices like analog optics, semiconductors, and power devices. The rising demand for semiconductors in countries in Asia is going to lead to growth in the silicon epi wafer market. For instance, in March 2023, Resonac developed a third-generation high-grade silicon carbide (SiC) epitaxial wafer (HGE-3G) for power semiconductors, offering superior quality to the second-generation HGE-2G. SiC power semiconductors reduce power loss and emit less heat, conserving energy. Demand for these semiconductors is increasing, particularly in industrial applications like electric vehicles and renewable energy generation. Resonance, the largest independent supplier of world-class SiC epi-wafers, is acclaimed by many device manufacturers inside and outside Japan.

Moreover, in September 2022, SK Siltron, which is the only manufacturer of semiconductor wafers in South Korea, to expand its semiconductor wafer capacities, approved a USD 686 million investment. This investment helped vitalize the local economy in producing 300 mm (12 inch) silicon wafers. Further, the surge in technological advancement in the semiconductors industry will also increase the development of high-quality silicon epi wafers in the coming years.

Silicon EPI Market Restraints:

• Increasing environmental concerns can hamper the silicon EPI market growth.

The industry of silicon EPI wafers could face restrain due to growing environmental concerns. Manufacturing silicon epi wafers requires energy-intensive compounds and uses harmful chemicals that are dangerous to the environment. In addition, it also causes greenhouse gases during its production, and the disposable of electronic silicon wafers is also a concern. The industry can be driven towards a positive impact by recycling silicon epi wafers and producing environment-friendly products.

Silicon EPI Market Key Developments:

• February 2024 - The U.S. Department of Energy's Loan Programs Office committed $544 million to SK Siltron CSS, LLC, as a conditional commitment to expand American manufacturing of high-quality silicon carbide wafers for electric vehicle power electronics.
• August 2022 - Infineon Technologies AG signed a multi-year supply agreement with US-based II-VI Incorporated for silicon carbide (SiC) wafers. The agreement included supporting Infineon’s strategy and meeting customers' demands. SiC is used in efficient power semiconductors and e-mobility, with Infineon's CoolSiC™ brand having the industry's largest portfolio for industrial applications.

 

• August 2021- II-VI Incorporated secured a $100 million contract to supply 150 mm silicon carbide substrates to Dongguan Tianyu Semiconductor Technology Co., Ltd., a Chinese company, from 2021 to 2023 as part of its transition to power electronics based on silicon carbide (SiC). The Contract was driven by accelerating the shift to smaller, more efficient power electronics for the electrification of transportation infrastructure and industrial equipment.

Market Segmentation:

The silicon EPI wafer market is segmented and analyzed as below:

• By Wafer Size
  • 6 Inch
  • 8 Inch
  • 12 Inch
  • Others
• By Application 
  • LED
  • Power Semiconductors
  • MEMS-Based Devices
  • Others
• By End-User 
  • Automotive
  • Aerospace
  • Healthcare
  • Consumer Electronics
  • Others
• By Geography
  • Americas
    • US
  • Europe Middle East and Africa
    • Germany
    • Netherlands
    • Others
  • Asia Pacific
    • China
    • Japan
    • Taiwan
    • South Korea
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

1.8. Key Benefits for the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. SILICON EPI WAFER MARKET, BY WAFER SIZE

5.1. Introduction

5.2. 6 inch

5.2.1. Market Opportunities and Trends

5.2.2. Growth Prospects

5.2.3. Geographic Lucrativeness

5.3. 8 inch

5.3.1. Market Opportunities and Trends

5.3.2. Growth Prospects

5.3.3. Geographic Lucrativeness

5.4. 12 inch

5.4.1. Market Opportunities and Trends

5.4.2. Growth Prospects

5.4.3. Geographic Lucrativeness

5.5. Others

5.5.1. Market Opportunities and Trends

5.5.2. Growth Prospects

5.5.3. Geographic Lucrativeness

6. SILICON EPI WAFER MARKET, BY APPLICATION

6.1. Introduction

6.2. LED

6.2.1. Market Opportunities and Trends

6.2.2. Growth Prospects

6.2.3. Geographic Lucrativeness

6.3. Power Semiconductors

6.3.1. Market Opportunities and Trends

6.3.2. Growth Prospects

6.3.3. Geographic Lucrativeness

6.4. MEMS-Based Devices

6.4.1. Market Opportunities and Trends

6.4.2. Growth Prospects

6.4.3. Geographic Lucrativeness

6.5. Others

6.5.1. Market Opportunities and Trends

6.5.2. Growth Prospects

6.5.3. Geographic Lucrativeness

7. SILICON EPI WAFER MARKET, BY END-USER

7.1. Introduction

7.2. Automotive

7.2.1. Market Opportunities and Trends

7.2.2. Growth Prospects

7.2.3. Geographic Lucrativeness

7.3. Aerospace

7.3.1. Market Opportunities and Trends

7.3.2. Growth Prospects

7.3.3. Geographic Lucrativeness

7.4. Healthcare

7.4.1. Market Opportunities and Trends

7.4.2. Growth Prospects

7.4.3. Geographic Lucrativeness

7.5. Consumer Electronics

7.5.1. Market Opportunities and Trends

7.5.2. Growth Prospects

7.5.3. Geographic Lucrativeness

7.6. Others

7.6.1. Market Opportunities and Trends

7.6.2. Growth Prospects

7.6.3. Geographic Lucrativeness

8. SILICON EPI WAFER MARKET, BY GEOGRAPHY

8.1. Introduction

8.2. Americas

8.2.1. US

8.3. Europe Middle East and Africa

8.3.1. Germany

8.3.2. Netherlands

8.3.3. Others

8.4. Asia-Pacific

8.4.1. China

8.4.2. Japan

8.4.3. South Korea

8.4.4. Taiwan

8.4.5. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. AKE Applied Materials, Inc.

10.2. II-VI Incorporated

10.3. Shin-Etsu Chemical Co., Ltd.

10.4. SUMCO Corporation

10.5. Wafer World Inc.

10.6. Siltronic AG

10.7. Nichia Corporation

10.8. Global Wafers Japan Co., Ltd.

10.9. SK Siltron Co., Ltd.

AKE Applied Materials, Inc.

II-VI Incorporated

Shin-Etsu Chemical Co., Ltd.

SUMCO Corporation

Wafer World Inc.

Siltronic AG

Nichia Corporation

Global Wafers Japan Co., Ltd.

SK Siltron Co., Ltd.