by The wet chemicals market for electronics and semiconductor applications comprises a wide range of products including photoresists, developer solutions, cleaning chemicals, and etching solutions that are extensively used across various stages of semiconductor wafer fabrication, IC packaging, and printed circuit board (PCB) manufacturing. Photoresists are critical photolithography materials that are applied on substrates to transfer patterns for transistor gates, metal interconnections, and other features. Developers are then used to remove photoresists from uncovered areas upon exposure to ultraviolet light. Wet etching processes further employ various acidic and alkaline solutions to selectively remove target materials. These chemicals play a vital role in defining and revealing circuitry patterns on wafers and chips. Apart from fabrication, cleaning chemicals containing acids, bases, and solvent mixtures are regularly used to remove contaminants, particulates and impurities from wafer surfaces between process steps.
The Global Wet Chemicals for Electronics and Semiconductor Applications Market is estimated to be valued at US$ 2 Mn in 2024 and is expected to exhibit a CAGR of 9.9% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the Wet Chemicals for Electronics and Semiconductor Applications Market are Novartis AG, Merck & Co. Inc., F-Hoffmann La Roche, Eli Lilly and Company, Bayer AG, AstraZeneca, Astellas Pharma Inc., Amgen Inc., OSE Immunotherapeutics SA, and Bristol- Myers Squibb Company, among others.
The growing demand for consumer electronics such as smartphones, tablets, gaming consoles, and other electronic devices is fueling the need for high-performance and high-speed integrated circuits. As Moore’s Law nears its physical scaling limits, chip manufacturers are turning to multiple patterning lithography techniques requiring additional wet processing steps to define ever-smaller features. This is anticipated to drive the consumption of wet chemicals.
Global electronics giants are rapidly expanding their manufacturing footprints across emerging nations to capitalize on policy developments, available infrastructure and affordable labor costs. For instance, Samsung has chip fabrication plants in 10 countries such as South Korea, United States, China and India. As leading electronics brands pursue globalization strategies, their growing international presence will require a parallel expansion of upstream wet chemical supply networks globally.
Market drivers
The increasing complexity of semiconductor technology nodes below 10nm is a key driver for wet chemicals market. Moving to newer nodes with smaller feature sizes demands more sophisticated photolithography techniques like double, triple and quadruple patterning that involve additional steps of multi-layer resist coating and development. This translates to higher utilization of photoresists, developers and other etchants. Further miniaturization brings new obstacles for uniform etching and cleaning, necessitating novel wet solutions with higher functionality.
Current geopolitical situation and its impact on Wet Chemicals for Electronics and Semiconductor Applications Market growth
The ongoing Russia-Ukraine conflict has significantly impacted the Wet Chemicals for Electronics and Semiconductor Applications Market globally. Both Russia and Ukraine are major suppliers of neon and palladium gases which are important raw materials used in the manufacture of semiconductor wafers. The supply disruptions caused due to trade sanctions and restrictions have led to a spike in the prices of these gases. This is negatively impacting the semiconductor industry and hampering the production of electronics devices which use semiconductor chips. Higher input costs are also putting pressure on the profit margins of Wet Chemicals manufacturers. The market is expected to witness short-term supply constraints and price volatility until alternative supply sources are established to meet the growing demand.
Manufacturers need to explore new trading partners and optimize supply chains to increase sourcing flexibility. They should proactively hedge commodity price risks and redesign product portfolios to minimize the usage of critical raw materials facing supply issues. Establishing local manufacturing capacities, especially in Asia and Americas will help gain long-term supply resilience. Collaborations with raw material producers and upstream partners can aid in demand-supply synchronization. The governments also need to support industries through incentives, financing schemes and trade policies to enhance domestic manufacturing and develop substitutes.
Fastest growing region for Wet Chemicals for Electronics and Semiconductor Applications Market
The Asia Pacific region is poised to become the fastest growing region for the Wet Chemicals for Electronics and Semiconductor Applications Market during the forecast period. This is attributed to rapid expansion of the semiconductor manufacturing industry in countries like China, South Korea, Taiwan and India. The region accounts for over 60% of the global semiconductor fabrication capacity. Rapid digitization, proliferation of IoT devices, 5G deployment and growth in semiconductor capital expenditure are driving the demand for wet chemicals from electronics and semiconductor manufacturers in Asia Pacific. Moreover, presence of leading electronics giants and a conducive business environment have encouraged several international Wet Chemical suppliers to set up manufacturing units in the region. The large captive consumption and manufacturing capabilities are projected to fuel the Wet Chemicals demand from Asia Pacific in the coming years.
Geographical regions where Wet Chemicals for Electronics and Semiconductor Applications Market is concentrated in terms of value
The Wet Chemicals for Electronics and Semiconductor Applications Market is currently dominated by North America region in terms of value. United States and Canada are home to major semiconductor chip designers and fabrication facilities of companies like Intel, Qualcomm, Micron, SK Hynix etc. which are the key consumers of wet chemicals. Strong presence of integrated device manufacturers and specialty chemical formulators has created an established supply chain network for wet chemicals in North America. Significant investments by government and private players in semiconductor R&D are also propelling the regional market growth. For instance, the CHIPS Act will incentivize domestic chip manufacturing and supporting industries development. Swift development of advanced logic and memory nodes is anticipated to maintain North America’s pole position as the most lucrative geographical market for wet chemicals over the forecast period.
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1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
