Semiconductor Fabrication Material Market - By Material Type , By Semiconductor Type , By Application , End Use Industry , By Geography - Global Opportunity Analysis & Industry Forecast, 2025 - 2030

Semiconductor Fabrication Material Market Overview

The Global Semiconductor Fabrication Material market size is forecast to reach USD 97.93 billion by 2030, after growing at a CAGR of 5.9% during the forecast period 2025-2030. Materials like silicon wafers, wet chemicals, industrial gases, chemical mechanical polishing (CMP) slurries and pads, photomasks, sputter targets, photoresists for semiconductors, photoresists for EUV, electrostatic chucks, IC lead frames, and others are commonly used in semiconductor fabrication. The increasing adoption of digitally integrated circuits (ICs) across industries such as automotive, communications, and electrical and electronics is a major factor driving the demand for semiconductor manufacturing materials. 

Report Coverage

The report “Global Semiconductor Fabrication Material Market– Forecast (2025-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of Global Semiconductor Fabrication Material.

By Material Type: Wet Chemicals, Silicon Wafers, Industrial Gases, Chemical Mechanical Polishing (CMP) Surry and Pads, Photomasks, Sputter Targets, Photoresists for Semiconductors, Photoresists for EUV, Electrostatic Chucks, IC Lead Frame, Wire Bonding, and Others

By Semiconductor Type: N-Type, p-Type

By Application: Consumer Appliances, Power Generation, Electronic Components, Others

By End Use Industry: Telecommunication, Energy, Electrical and Electronics, Medical and Healthcare, Automotive, Defence & Aerospace, and Others

By Manufacturing Process: Deposition, Lithography, Etching, Doping & Ion Implantation, Cleaning
Others

By Geography:  North America, Europe, Asia Pacific, South America, and RoW

Key Takeaways

• In Rising production of electronics and IT products is further estimated to boost the semiconductor fabrication material market growth. For instance, In 2023, worldwide electronics and IT industry production is about $3,382.6 billion, with production increasing by 9% to $3,686.8 billion in 2024 as per the Japan Electronics and Information Technology Industries Association (JEITA). 
• Enterprises worldwide are making significant investments in semiconductor manufacturing to reduce dependency on imports and enhance technological sovereignty. These investments include the development of new fabs and upgrading existing ones, which in turn drives the demand for advanced semiconductor fabrication materials.
• The growing investments in the creation of new data centers will increase the demand for semiconductors in the telecommunication industry which is anticipated to raise the opportunities for the growth of the semiconductor fabrication material market over the forecast period.

By Material Type - Segment Analysis

The Silicon Wafers led the market in 2024. Silicon wafers are the basic building blocks of semiconductors which are essential components of all electronics including computers, telecommunications equipment, and consumer electronics. The highly designed thin discs which can be up to 12 inches in diameter, are used as the substrate material for most semiconductor devices or chips. To meet the growing demand for semiconductors, especially in consumer electronics, automotive, and industrial applications, there is a significant increase in investment in new fabrication plants (fabs) and capacity expansions. This trend is driving higher demand for silicon wafers, particularly in regions like East Asia and North America, where most of the new fabs are being constructed.

For instance, South Korea's plan to invest $471 billion by 2047 to build 16 new fabs in Gyeonggi Province, alongside new investments in fabs by Chinese companies in Shenzhen, Tianjin, and Shanghai, underscores the aggressive expansion of semiconductor manufacturing capacity in Asia. The construction of new fabs directly correlates with a surge in demand for silicon wafers, as these facilities will require a continuous supply of wafers to produce semiconductors. Increasing acquisitions by major players as their growth strategy has positively impacted the silicon wafers demand growth in recent years. For instance, in March 2021, GlobalWafers acquired a 70.27% stake in its competitor Siltronic AG. 

By Semiconductor Type - Segment Analysis

The N-type semiconductor segment dominated the semiconductor fabrication material market in 2024. The key factor driving the growth of the n-type semiconductor in the market is conductivity. The mobility and thus the conductivity of semiconductors are usually influenced by the effective mass of charge carriers. Because the effective mass of electrons is usually lower than that of holes, n-type semiconductors have a high conductivity. 

P-type semiconductors, on the other hand, have holes as the majority carrier for conduction, and their effective mass is usually higher than that of electrons, resulting in low conductivity. Since n-type cells employ phosphorus rather than boron, they are immune to boron-oxygen defects, which cause p-type structures to lose efficiency and purity. N-type cells, on the other hand, are more efficient and immune to light-induced destruction (LID).
On October 20, 2023, The collaboration between Khalifa University and various international institutions to develop a new N-type semiconductor for organic optoelectronic devices reflects a growing trend toward innovation in semiconductor materials. This trend is particularly focused on enhancing the performance, efficiency, and applicability of semiconductors in emerging technologies. The advancement of N-type semiconductors for organic optoelectronic devices supports the growth of organic electronics, which is a rapidly expanding field with applications in displays, solar cells, and sensors. This innovation aligns with several emerging trends in the Semiconductor Fabrication Material Market. Thus, due to the above reasons the demand for n-type semiconductors is projected to incline in the upcoming years.    

By Application – Segment Analysis

Electronic Components Applications Dominated the Semiconductor Fabrication Material Market in 2024. The segment has been fuelled by technological advancements, modernization of automobiles, and adoption of smart technologies in recent years. The growing use of MEMS and NEMS technologies, as well as the Internet of Things, is even driving up the demand for active electronic components in various regions. As per Japan Electronics and Information Technology Industries Association, in July 2021 the electronic components production in Japan was 293,966 million yen ($ 2,570.3 million) up by 129.9% in comparison to the previous year. The market is also predicted to rise due to the anticipated adoption of these components in networking devices and telecom equipment required for establishing 5G infrastructure in the upcoming years.

By End User– Segment Analysis

Electrical and electronics segment dominated the semiconductor fabrication material market in 2024. The Semiconductors fabrication materials are used in the manufacture of different kinds of electronic devices, including diodes, transistors, chips control temperatures, timers, automated features, and integrated circuits.

India has established itself as a prominent hub for manufacturing, with its domestic electronics production soaring from $29 billion in 2014–15 to $101 billion in 2022–2023, according to IBEF. The electronics industry now accounts for around 3.4% of India's GDP. Over the past six years, the Indian government has invested approximately $17 billion in four Production-Linked Incentive (PLI) Schemes: Semiconductor and Design, Smartphones, IT Hardware, and Components.

According to the IPC Economic Outlook December 2021, the electronics sector, which includes components, loaded boards, computers, communications equipment, and consumer electronics, grew by 2.6% in November 2021. Sales in the electrical and electronics sector have increased by 30.6% compared to 2019, with a growth of 12.8% from 2019 to 2021.

As per Invest India, the global electronics market was valued at over $2 trillion in 2019. India’s share of global electronics manufacturing grew from 1.3% in 2012 to 3.6% in 2019, driven largely by its position as the second-largest mobile manufacturer globally. India's electronics manufacturing industry is forecast to generate $300 billion in revenue by 2025-2026, while the overall electronics market is expected to reach $400 billion by 2025.This growing sector will undoubtedly contribute to the rising demand for semiconductor fabrication materials during the forecast period.

By Geography - Segment Analysis

The APAC region is expected to dominate the Global Semiconductor Fabrication Material Market, with a projected CAGR of 7.6% from 2025 to 2030. Key countries such as China, Taiwan, South Korea, Japan, and Singapore house some of the largest semiconductor manufacturers in the world, including companies like TSMC (Taiwan Semiconductor Manufacturing Company), Samsung Electronics, and Intel. These countries are investing heavily in semiconductor fabrication, leading to increased demand for high-quality materials.

For instance, China's semiconductor sector has grown to become one of the largest globally, also positioning China as the largest consumer of chips. The country is expected to continue expanding its semiconductor industry through substantial investments. According to the Semiconductor Industry Association, China’s semiconductor industry is estimated to invest $12.3 billion in 2021 and $15.3 billion in 2022, contributing about 15% of the global capital expenditure (CAPEX) for semiconductors. China's semiconductor sector is expected to double its installed wafer capacity over the next decade, reaching 19% of the global installed chip capacity. Additionally, more than 22,800 new semiconductor companies were established in China in 2020, marking a 195% increase from 2019, which will significantly contribute to the growing demand for semiconductor fabrication materials.

Drivers – Global Semiconductor Fabrication Material Market

• Increasing Government Initiatives For New Semiconductor Production Units

Government initiatives play a critical role in advancing the semiconductor sector, helping to boost both market demand and global market share. For example, the U.S. government has made substantial investments to strengthen domestic semiconductor supply chains. In June 2021, the United States Innovation and Competition Act (USICA) was enacted, dedicating $52 billion to support domestic chip manufacturing, research, and design.

For instance, in August 2024, the Semiconductor Industry Association (SIA) praised the U.S. Commerce Department and Texas Instruments (TI) for semiconductor manufacturing incentives, including up to $1.6 billion in direct funding via the CHIPS and Science Act to support three 300mm semiconductor wafer fabs under construction in Texas and Utah.

The Japanese government has also ramped up efforts to help domestic semiconductor companies expand globally, with plans to increase the industry’s annual revenue to more than $114 billion by 2030. In 2022 and 2023, the Japanese government provided 330 billion yen ($2.3 billion) in financial support for the Rapidus project, a next-generation semiconductor mass-production center developed in collaboration with IBM and IMEC. The goal is to begin producing 2-nanometer semiconductors by 2027.

In May 2024, South Korea's government, under Finance Minister Choi Sang-mok, announced a $7 billion support package aimed at advancing the country’s semiconductor sector. By August 2024, South Korea revealed an even more ambitious support plan worth 26 trillion won ($19 billion), emphasizing its commitment to remaining competitive in the global semiconductor industry, amidst what is referred to as “all-out warfare” in the sector. These initiatives underscore the government's focus on maintaining a competitive edge in the market while also enhancing energy efficiency and sustainability, driving the demand for semiconductor fabrication materials.

• Increasing Research And Development Of Semiconductors

The semiconductor sector is one of the most R&D-intensive industries globally, demanding large-scale investments. The U.S. leads in R&D activities, supported by its talent pool, while Asia leads in capital-intensive activities, bolstered by substantial government incentives.

In September 2023, the U.S. National Science Foundation announced $45.6 million for 24 research and education projects in semiconductor technology. Additionally, in February 2023, Wolfspeed, Inc. announced plans to build a cutting-edge, highly automated 200mm wafer fabrication facility in Saarland, Germany. This will be the company’s first fab in Europe and is designed to create breakthroughs in Silicon Carbide development and production, supporting growing demand for various automotive, industrial, and energy applications.

The Wolfspeed facility, part of the IPCEI for Microelectronics and Communication Technologies framework, is expected to attract up to €3 billion in investments. Partnering with automotive supplier ZF, which will invest $185 million, this advanced semiconductor facility will play a key role in meeting the growing demand for semiconductor materials and advancing R&D in the sector.

Okmetic has undertaken a €400 million ($425M) investment — the largest in the company’s history — for a new 200mm production facility, which will enable them to more than double the company’s capacity and business. Wafer production at the new facility is expected to begin in 2025. Future semiconductors and microelectronics will necessitate a wide coalition of scientific and engineering experts from academia and industry to pursue holistic, "co-design" techniques that develop materials, devices, and system integration. Thus, the growing research and development will fuel the semiconductor production market and help in fueling the demand for semiconductor fabrication material market.

Challenges – Global Semiconductor Fabrication Material Market

• Growing Environmental Concerns To Restrain Market Growth

A typical semiconductor facility produces about 2 million integrated circuits each month, consuming over 20 million gallons of water. As part of the production process, industrial wastewater must eventually be discharged. Additionally, wafer manufacturers use numerous hazardous chemicals, which pose significant environmental risks. Consequently, manufacturers are facing mounting pressure and criticism from authorities and environmental groups, which is expected to limit the growth potential of the semiconductor fabrication materials market globally.

Environmental challenges are also exacerbated by high-frequency limitations. High-frequency applications demand precise and reliable manufacturing processes, where even small adjustments in factors like doping concentration, oxide thickness, or etching depth can significantly affect performance. Heat dissipation is a primary challenge for high-frequency devices. As frequency and power densities rise, effective thermal management becomes crucial to prevent device degradation or failure.

While the semiconductor industry grapples with sustainability issues, it is taking steps to mitigate its environmental impact. As awareness of climate change increases, the carbon footprint of semiconductor manufacturing processes is under closer scrutiny. For instance, STMicroelectronics' 2023 Sustainability Report highlights the company's efforts to achieve carbon neutrality by 2027. In 2022, global sourcing of renewable electricity grew to 62%, up from 51% in 2021. However, transitioning to renewable energy sources presents challenges, particularly the high cost of solar energy. To reduce these costs, the semiconductor sector will need to invest in further research and development.

Additionally, regulatory changes present a challenge to the semiconductor industry, which is governed by multiple authorities. New regulations may be needed to ensure the industry's long-term sustainability, addressing issues such as environmental impact, energy consumption, and other critical areas.

Market Landscape

In 2023, the top players in the Global Semiconductor Fabrication Material market share accounted for 27.33% of the share. Major players in the Global Semiconductor Fabrication Material market are Sumco Corporation, Versum Materials Inc(Merck Group), Global Wafers, Shin-Etsu Chemical Co. Ltd., JSR Corporation, Cabot Microelectronics Corp. (CMC), Sumitomo Chemical, Photronics, Inc., DuPont de Nemours, Inc., Honeywell International Inc., and Others.

Developments:

• On April 9, 2024, Shin-Etsu Chemical Co., Ltd. announced plans to expand its semiconductor lithography materials business by constructing a new plant in Isesaki City, Gunma Prefecture, Japan. This new plant will become Shin-Etsu's fourth production base for this business.
• On June 5, 2024, Air Liquide signed a major contract to support the U.S. semiconductor industry, with an investment exceeding $250 million.
• February 3, 2023, GlobalWafers Co., Ltd. revealed that its Chinese subsidiary, Sino Silicon Technology (SST), had acquired 100% of Shanghai Sawyer Shenkai Technology Material Co., Ltd. (SSKT) for approximately RMB 100 million (around NT$ 445 million).

For more Chemicals and Materials Market reports, please click here