Thin wafer generally referred to the semiconductor wafers which posses a diameter that is comparatively lesser than the standard thickness. These wafers come in different sizes and thickness which is primarily based on the application for which it is being used for.
The thin wafer market is anticipated to show nominal growth throughout the course of the next five years. The major factors augmenting the market growth include the constantly growing adoption of semiconductor devices across the various industry verticals. Also, the miniaturization of electronic devices is further boosting the demand for thin wafers as it is further amplifying the demand for smaller electronic components. The constantly growing penetration of smartphones as well as the internet has further led to an increase in the adoption of connected devices which is also a major factor playing a significant role in shaping up the market growth throughout the forecast period. Furthermore, the increasing investments in smart homes is also positively impacting the market growth in the next five years. Additionally, the innovations in the packaging industry have led to an increasing adoption of RF devices, this, in turn, is further propelling the business growth opportunities for the market players over the next five years. Thus, the growing adoption of RF modules in logistics, packaging, and healthcare sector are also the key factors that are expected to drive the demand for thin wafers in the next five years. The chart below represents the market size of a thin wafer which is projected to reach US$9.895 billion by 2025 from US$7.870 billion in 2019.
Thin Wafer Market, Forecasts From 2019 to 2025, in US$Billion
Source: Knowledge Sourcing Intelligence Estimates
However, the recent advent of COVID-19 is anticipated to restrain the market growth to some extent owing to the fact that the manufacturing activities across several industries such as automotive and electronics have been temporarily suspended due to labor shortages, non-availability of raw materials along with government restrictions such as lockdown in some countries. Furthermore, the cyclic nature of the semiconductor industry is also somewhat expected to slow down the market growth to some extent during the forecast period.
Digitization Across the Industries
The rapid adoption of digitization solutions across the different industry sectors in both developed and developing economies of the globe is further projected to drive the demand for numerous electronic components, thus augmenting the growth of the market in the next five years. Industrialization in the developing economies is associated with a growing role of manufacturing in these economies, further contributing to the economic growth as well. Furthermore, the growing industrialization in developing economies is further supported by the role of policies in the promotion of industrialization and emphasizing the importance of strategic collaboration among the government and private sector, further fostering productivity and economic growth, providing an opportunity for the growth of the global wafer handling robots market here during the forecast period and beyond. Furthermore, the growing adoption of Industry 4.0 and the adoption of automation and smart manufacturing solutions in many parts of the world is also anticipated to augment the demand for thin wafers for numerous applications in the components to be used in the industries.
Cyclic Nature of the Semiconductor Industry
The semiconductor industry goes through a business cycle often, which results in the slowdown of the manufacturing activities, thereby restricting the market growth of thin wafers. The major factors which result in the business cycle are a reduction in capital investment and demand slowdown by the end-user industry. Economies going through contractionary phases experience a reduction in demand as the overall income of the individual is reduced over the period of time. These contractionary phases usually impact regional economies, as was observed recently observed in Greece, Italy, and Brazil among other economies. Lack of demand by end-user industries such as manufacturing, consumer electronics, and automotive lead to a decrease in demand for these ICs, thus restricting the demand for thin wafers. Cyclical capital investment is another major factor that contributes to the growth of the semiconductor industry. As a manufacturer sets up a new facility and when it works at full capacity upon its completion, the market supply exceeds the market demand, resulting in the price to fall below the equilibrium prices. Due to the erosion of profits, a manufacturer halts the capital spending and waits for the market to reach equilibrium. This further impedes the thin wafer market growth in the forecast period. Furthermore, the recent outbreak of the novel coronavirus disease is further impacting the manufacturing activities across various industries during a short period owing to the fact that this has further caused a disruption in supply chain and has further led to a temporary suspension in the production output also due to shortage of labor and government restrictions.
The thin wafer market has been segmented into size, application, and geography.
300mm to Witness Healthy Growth
By size, segmentation of the market into 125mm, 200mm, and 300mm. The 300mm size wafer is expected to show a healthy growth during the next five years owing to the fact that these wafers enhance the manufacturers ability to manufacture a vast production output in a single batch. This, in further motivating the semiconductor device manufacturers to use a 300mm wafer for mass production.
Image Sensors to Hold a Decent Share
By application, the segmentation of the market has been done as MEMS, memory, LED, RF devices, image sensors, and others. The image sensors segment is expected to hold a decent amount of share in the market on account of the vast usage of image sensors in numerous industries. This can be backed up by the fact that the global market for image sensors is expected to grow at a CAGR of 7.91% by reaching US$21.048 billion by the year 2025 from US$13.333 billion in the year 2019. Furthermore, the MEMS and memory segment are anticipated to propel at a notable growth rate throughout the course of the next five years.
Global Image Sensors Market, Forecasts From 2019 to 2025, in US$Billion
Source: Knowledge Sourcing Intelligence Estimates