The global semiconductor materials market generated revenues of 67.47 billion U.S. dollars in 2024, of which over 20 billion U.S. dollars was consumed in Taiwan. A further 13.46 billion U.S. dollars was generated by China.

The Semiconductor Raw Materials Market report segments the industry into Application (Fabrication, Packaging), End-User Industry (Consumer Electronics, Telecommunication, Manufacturing, Automotive, Energy and Utility, Other End-User Industries), and Geography (Taiwan, South Korea, China, Japan, North America, Europe, Rest of the World). Five years of historical data and five-year forecasts are included.

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Semiconductor Materials Market Size 2024-2028

The semiconductor materials market size is forecast to increase by USD 18.1 billion, at a CAGR of 4.4% between 2023 and 2028.

The market is experiencing significant growth due to several key drivers. One major factor is the increasing demand for advanced packaging materials in the consumer electronics industry, particularly for applications such as light-emitting diodes (LEDs) and solar cells. Additionally, the emergence of the Internet of Things (IoT) and Machine-to-Machine (M2M) connections is driving the need for semiconductor materials in the production of transistors and other components. Furthermore, the rollout of 5G technology is expected to fuel the growth of the market, as this next-generation technology requires advanced semiconductor materials for its implementation. Another trend is the adoption of flexible substrates for semiconductor manufacturing, which offers benefits such as improved device flexibility and reduced manufacturing costs.

What will be the Size of the Market During the Forecast Period?

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The market plays a pivotal role in the electronics industry, enabling the creation of small-sized gadgets and powering advanced technologies in various sectors. The market is witnessing significant advancements, driven by the increasing demand for energy generation, data storage, communication, and space applications. Silicon (Si) semiconductors continue to dominate the market due to their versatility and cost-effectiveness. However, alternative semiconductor materials such as germanium (Ge), gallium arsenide (GaAs), silicon germanium, gallium nitride, and pyrite are gaining traction due to their unique properties. Advancements in semiconductor materials have led to the development of advanced node Integrated Circuits (ICs), heterogeneous integration, and 3D memory architectures. These technologies are essential for creating high-performance, power-efficient, and compact electronic devices. Wafer fabrication and packaging materials are crucial components of the market. The demand for flexible substrates and packaging materials is increasing due to the growing popularity of wireless technologies and consumer electronics. In the field of energy generation, semiconductor materials are used extensively in solar cells to convert sunlight into electricity.
The continuous research and development in this area aim to improve the efficiency and durability of solar cells, making them a viable and cost-effective solution for energy generation. Semiconductor materials also play a significant role in data storage devices, where they are used to store and process data. The increasing demand for data storage and the need for faster data processing have led to the development of advanced semiconductor materials and technologies. In the communication sector, semiconductor materials are used in various applications, including light-emitting diodes (LEDs) for fiber optic communication and wireless technologies. The development of advanced semiconductor materials and technologies is essential for improving the speed, efficiency, and reliability of communication networks. The market is expected to grow significantly due to the increasing urbanization and the resulting demand for advanced technologies in various sectors, including transportation, healthcare, and energy. The market is also driven by the growing popularity of small-sized gadgets and the increasing use of semiconductor materials in space applications.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Product

  Fab materials
  Packaging materials


Application

  Consumer electronics
  Manufacturing
  Automotive
  Telecommunications
  Others


Geography

  North America

    US


  Europe

    UK
    France


  APAC

    China
    India


  Middle East and Africa



  South America

By Product Insights

The fab materials segment is estimated to witness significant growth during the forecast period.

Semiconductor materials are essential components in the production of integrated circuits (ICs) and other electronic components. These materials are vital for constructing the intricate structures and functions found in modern electronic devices. Advancements in semiconductor manufacturing technologies, including smaller process nodes, FinFET transistor architectures, and advanced packaging techniques, necessitate more precise and specialized semiconductor materials. Enhancing semiconductor manufacturing process efficiency and increasing yield rates are crucial for minimizing costs and expanding output. The increasing global demand for electroni

The Europe Semiconductor Materials Market report segments the industry into By Application (Fabrication, Packaging), By End-User Industry (Consumer Electronics, Telecommunication, Manufacturing, Automotive, Energy and Utility, Other End-User Industries). Get five years of historical data alongside five-year market forecasts.

Semiconductor Materials Market size was valued at USD 77.13 Billion in 2024 and is projected to reach USD 108.02 Billion by 2031, growing at a CAGR of 4.3% from 2024 to 2031.

Global Semiconductor Materials Market Drivers

Technological Developments: The need for better semiconductor materials is fueled by ongoing developments in semiconductor technology, such as the creation of smaller, more effective processors. Growing Need for Electronics: The need for semiconductor materials is fueled by the rising demand for electronic devices, such as tablets, smartphones, and smart appliances. Emerging Applications: As a result of the need for better semiconductor materials, emerging technologies like as artificial intelligence (AI), the Internet of Things (IoT), and driverless cars are driving market expansion. Growth of 5G Technology: As 5G networks spread over the globe, more semiconductor materials will be needed to produce high-frequency and high-speed chips, which will increase demand. Growth of the Renewable Energy Sector: Semiconductor materials play a key role in the development of renewable energy technologies like wind turbines and solar panels, which in turn drive market expansion. Automotive Industry Trends: The demand for semiconductor materials is driven by the growing integration of semiconductor components in automobiles for features like electrification, connectivity, and autonomous driving.

In 2023, the size of the semiconductor material market amounted to 98 billion yuan. According to the forecast, the market size was expected to reach over 100 billion yuan by 2024. As a response to international competition, the Chinese government increased the emphasis on building a domestic semiconductor industry to strengthen self-reliance.

The global semiconductor materials market size reached around USD 70.57 Billion in 2024. The market is projected to grow at a CAGR of 5.80% between 2025 and 2034 to reach nearly USD 124.02 Billion by 2034. The semiconductor materials market is experiencing significant expansion, driven by rising demand for advanced electronics. The market size is expected to witness steady growth, projected to grow at a notable CAGR over the forecast period. Increasing investments and technological advancements continue to drive revenue, with the industry reaching new financial milestones exceeding USD billions.

The Compound Semiconductor Materials Market will increase phenomenally in 2025 to 2035 because compound semiconductor materials are applied vastly in telecommunication, automotive, aerospace, and consumer electronics. The market will be around USD 29,973 million in 2025 and USD 91,034 million in 2035 with a compound annual growth rate (CAGR) of 11.7% in 2025 to 2035.

Metric	Value
Industry Size (2025E)	USD 29,973 million
Industry Value (2035F)	USD 91,034 million
CAGR (2025 to 2035)	11.7%

Country-wise Outlook

Country	CAGR (2025 to 2035)
USA	11.8%

Country	CAGR (2025 to 2035)
UK	11.5%

Region	CAGR (2025 to 2035)
European Union	11.1%

Country	CAGR (2025 to 2035)
Japan	11.8%

Country	CAGR (2025 to 2035)
South Korea	11.5%

Competitive Situation

Company Name	Estimated Market Share (%)
II-VI Incorporated	14-18%
Wolfspeed, Inc.	12-16%
IQE PLC	9-13%
Sumitomo Electric Industries, Ltd.	6-10%
Showa Denko K.K.	4-8%
Other Companies (combined)	45-55%

• The global industry was valued at US$ 50.7 Bn in 2023
• It is estimated to advance at a CAGR of 12.2% from 2024 to 2034 and reach US$ 176.4 Bn by the end of 2034

Market Introduction

Attribute	Detail
Market Drivers	Rise in Adoption of Flexible and Printed Electronics R&D of Smaller and More Energy-efficient Devices

Regional Outlook

Attribute	Detail
Leading Region	Asia Pacific

Advanced Materials for Semiconductor Market Snapshot

Attribute	Detail
Market Size in 2023	US$ 50.7 Bn
Market Forecast (Value) in 2034	US$ 176.4 Bn
Growth Rate (CAGR)	12.2%
Forecast Period	2024-2034
Historical Data Available for	2020-2022
Quantitative Units	US$ Bn for Value and Thousand Units for Volume
Market Analysis	It includes segment analysis as well as regional level analysis. Furthermore, qualitative analysis includes drivers, restraints, opportunities, key trends, Porter’s Five Forces Analysis, value chain analysis, and key trend analysis.
Competition Landscape	Market share analysis by company (2023) Company profiles section includes overview, product portfolio, sales footprint, key subsidiaries or distributors, strategy and recent developments, and key financials
Format	Electronic (PDF) + Excel
Market Segmentation	By Material Type Compound Semiconductors Gallium Arsenide (GaAs) Gallium Phosphide (GaP) Indium Phosphide ((InP) Silicon Carbide (SiC) Gallium Nitride (GaN) Aluminum Gallium Indium Phosphide (AlGaInP) Two-dimensional Materials Graphene Transition Metal Dichalcogenides (TMDs) Black Phosphorus Nanomaterials Organic Semiconductors Optoelectronic Materials High-k Dielectrics and Metal Gates Others By Application Power Electronics High-frequency Devices Photovoltaics Sensors Memory and Storage Flexible and Printed Electronics Optoelectronics Others (High-reliability Devices, EMI/ ESD Protection Devices, etc.) By End-use Industry IT and Telecommunications Consumer Electronics Aerospace and Defense Healthcare Industrial Building and Automation Others
Regions Covered	North America Europe Asia Pacific Middle East & Africa South America
Countries Covered	U.S. Canada Germany U.K. France Japan China India South Korea ASEAN GCC South Africa Brazil
Companies Profiled	WOLFSPEED, INC. Coherent Corp. Sumitomo Electric Industries Ltd. Nichia Corporation Soitec AXT, Inc. ENTEGRIS Samsung Electronics Co., Ltd. IQE PLC Applied Materials LG Chem Ltd. Resonac Holdings Corporation BASF SE KYOCERA Corporation
Customization Scope	Available upon request
Pricing	Available upon request

The size of the Semiconductor Material Market was valued at USD 66.93 USD Billion in 2023 and is projected to reach USD 89.27 USD Billion by 2032, with an expected CAGR of 4.2% during the forecast period. Semiconductor materials are substances that have electrical conductivity between that of a conductor and an insulator. Their unique properties allow them to be used in a wide range of electronic devices, such as transistors, diodes, and integrated circuits. The conductivity of semiconductors can be controlled through the addition of impurities in a process called doping, which enhances their ability to conduct electricity. Common semiconductor materials include silicon, germanium, and gallium arsenide. Due to their ability to be precisely engineered, semiconductors are foundational to modern electronics, enabling technologies like computers, smartphones, and solar cells. Recent developments include: In July 2024, Applied Materials, Inc. unveiled new materials engineering developments aimed at enhancing computer system performance-per-watt by allowing copper wiring to scale down to the 2nm logic node and beyond., In April 2024, Shin-Etsu Chemical Co. announced that it will design a new semiconductor lithography materials plant in Japan, making it the company's fourth production base for this business. The new plant will be developed on a 150,000 m² site, with phased investments totaling approximately USD 560 million by 2026. The company’s resources will fully fund the project., In March 2024, Toppan Holdings unveiled its plans to construct a semiconductor package substrate plant in Singapore, which is set to begin operations by late 2026, with an estimated initial investment of USD 338 million., In December 2023, Tokyo Electron launched the Ulucus G wafer thinning system for 300mm wafer fabrication. This new system integrates TEL's grinding unit with the proven LITHIUS Pro Z platform, enhancing wafer flatness and quality while reducing manual labor. The Ulucus G features single-wafer processing units, including grinding, scrub cleaning, and spin wet etch, allowing precise control over each wafer's quality., In October 2023, U.K. startup Space Forge was set to launch its ForgeStar-1 satellite, aiming to produce semiconductor materials in space after their first satellite was lost in a failed launch. The company partnered with Northrop Grumman to supply space-made semiconductor substrates for further development.. Key drivers for this market are: Increasing Use of Consumer Electronics Such as Smart Phones, Tablets, and Wearables Drives the Market Growth. Potential restraints include: Increasing Use of Consumer Electronics Such as Smart Phones, Tablets, and Wearables Drives the Market Growth. Notable trends are: Increasing Use of Consumer Electronics Such as Smart Phones, Tablets, and Wearables Drives the Market Growth.

The size of the Semiconductor Materials Market was valued at USD 65.17 Billion in 2024 and is projected to reach USD 88.39 Billion by 2033, with an expected CAGR of 4.45% during the forecast period. The Semiconductor Materials Market serves an important position in the global electronics industry as it is the backbone of the fabrication of electronic devices through semiconductor materials. Silicon, gallium arsenide, indium phosphide, and other categories of semiconductor materials are used to manufacture a variety of products such as solar cells and transistors, integrated circuits, and diodes. Semiconductors, also known as electronic components or electronic devices, cover a variety of semiconductor technologies in analog, digital, and mixed-signal varieties with different applications for industries that are related to consumer electronics, the automotive field, telecommunications, and healthcare, among others. Advanced technologies that lead to increased semiconductor materials demand are mainly 5G, electric vehicles, and IoT, demanding highly performing semiconductors. Growing demands for energy-efficient solutions, as well as smart devices, propel the growth of the market. Key strength behind semiconductor materials can be made in their efficiency towards improving the performance of devices, miniaturization, and energy efficiency. Moreover, innovations in material science have paved the way to develop new and more efficient materials that could enhance the functionality and reliability of a device. The impact of the market is tremendous because semiconductors form the backbone of modern technological innovations, enabling breakthroughs in many sectors and driving economic growth globally. Recent developments include: September 2022 – Showa Denko K.K. (SDK) confirmed that it had merged with Showa Denko Materials Co., Ltd. (SDMC) on January 1, 2023 to establish “Resonac.” This new firm will take over as the holding company instead of SDK, while Resonac Corporation will be the operational company instead of SDMC. The Showa Denko Group seeks to create a leading-edge functional material major by constant reorganization actions.August 2022 - Indium Corporation showcased products from GalliTHERM which is their line of gallium-based liquid metals solutions. This ground-breaking product range incorporates more than six decades of experience in developing gallium-based liquid metals by the company.July 2021 –Showa Denko Materials Co. revealed that there will be an increase in its semiconductor material production capacity at its subsidiary firm located in Taiwan due to the high demand or requirements for its product.March 2021 - Intel announced investing $20 billion into two plants situated in Arizona as part of efforts aimed at responding to a worldwide shortage of chips used in cars and other electronic devices amid concerns that America is losing its edge in semiconductors manufacturing.Semiconductor Materials Market Segmentation. Notable trends are: High demand for small-sized gadgets with complex functionalities is boosted the market growth..

The size of the Semiconductor Materials market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 4.75% during the forecast period.Semiconductor materials are materials that possess electrical conductivity in between that of a conductor and an insulator. Such materials form the very base of modern electronics and constitute the building block for transistors, integrated circuits, and other vital components in a device. The most widely used semiconductor materials include silicon, germanium, and compound semiconductors, such as gallium arsenide and silicon carbide.The semiconductor material is crucial to the vast number of applications; in electronics, they find themselves applied in smartphones, computers, and televisions, in telecommunications, for high-speed data transmission and wireless communication. In the automotive, electronic systems are powered to serve engine control units and advance driver-assistance systems; and in renewable energy, to convert sunlight into electricity by applications in solar cells.The need for semiconductor materials keeps on increasing with the demand for more advanced electronic devices and further electronics miniaturization.The advancing need for new and innovative semiconductor materials, which can offer high-performance and efficiency, has thus created an urgent requirement due to advancing technology. Major research and development efforts are witnessed in developing advanced materials, such as silicon carbide and gallium nitride, which are highly beneficial for high-power and high-frequency applications. Recent developments include: September 2022 - Showa Denko K.K. (SDK) announced its merger with Showa Denko Materials Co., Ltd. (SDMC) on January 1, 2023, to form "Resonac." Resonac Holdings Corporation will replace SDK as a holding company, while Resonac Corporation will replace SDMC as an operational corporation. Through ongoing restructuring efforts, the Showa Denko Group intends to establish a significant chemical firm with cutting-edge functional materials., August 2022 - Indium Corporation introduced products from its GalliTHERM line of gallium-based liquid metals solutions. The company's over 60 years of expertise in producing liquid metals based on gallium are incorporated into this cutting-edge product range.. Key drivers for this market are: Technical Advancements and Product Innovation of the Electronic Materials, Rising Demand for Consumer Electronics Goods; Increased Demand From OSAT/Packaging Companies. Potential restraints include: Complexity in the Manufacturing Process. Notable trends are: Rising Demand for Consumer Electronics Goods to Drive the Market.

The size of the Asia-Pacific Semiconductor Materials market was valued at USD XXX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 3.40% during the forecast period.These materials are conductors between the extremes of conductors and insulators in terms of electrical conductivity. They are useful for controlling the passage of electric current, a property that makes them core components of modern electronics. Silicon, germanium, gallium arsenide, and silicon carbide are common semiconductor materials.The Asia-Pacific semiconductor materials market is the largest global hub for the semiconductor industry, driven by high demand from electronics manufacturing powerhouses like China, South Korea, Taiwan, and Japan. These countries have the world's leading semiconductor manufacturers, foundries, and research institutions. The strong manufacturing infrastructure, skilled workforce, and increasing investments in research and development in this region are the reasons for the dominance of the Asia-Pacific region in the semiconductor materials market.Increased market in the Asia Pacific The increase in demand for the use of electronic equipment-the leading of devices by consumers -gaming handheld and smartphones, pads-tablet, and so-called "Internet of things or IoT devices-places higher demand on the enhancement and research of semiconductor devices.Advanced semiconductor technology of new "5G" -of advanced AI applications. Recent developments include: December 2021: Intel Corporation announced that it would open a semiconductor manufacturing facility in India. The announcement by the company comes after Union Cabinet's recent decision on semiconductors, which will support research and innovation in the industry and enhance production, bolstering the 'Aatmanirbhar Bharat' program., August 2021: Sumitomo Chemical decided to expand its production capacity for high-purity chemicals for semiconductors. The company to install new production lines to double the capability for high-purity sulfuric acid at its Ehime Works (Niihama city, Ehime, Japan) and improve the capacity for high-purity ammonia water at the Iksan Plant of Dongwoo Fine-Chem Co., Ltd., a wholly-owned subsidiary in South Korea. The new production lines are expected to commence operation in the first half of fiscal 2024 for Ehime Works and the second half of fiscal 2023 for the Iksan Plant.. Key drivers for this market are: Technological Progress and Product Innovation in Electronic Materials, Increased Demand for Consumer Electronics. Potential restraints include: Complexity of the Manufacturing Process. Notable trends are: Silicon Segment to Witness Significant Growth.

The Asia-Pacific Semiconductor Materials Market is Segmented by Type of Material (Silicon Carbide, Gallium Manganese Arsenide, Copper Indium Gallium Selenide, Molybdenum Disulfide, and Bismuth Telluride), Application (Fabrication (Process Chemicals, Photomasks, Electronic Gases, Photoresists Ancillaries, Sputtering Targets, Silicon, and Other Fabrication Materials)), Packaging (Substrates, Lead frames, Ceramic Packages, Bonding Wire, Encapsulation Resins, Die Attach Materials, and Other Packaging Types), End-user Industry (Consumer Electronics, Telecommunication, Manufacturing, Automotive, Energy and Utility, and Other End-user Industries) and Geography (Taiwan, South Korea, China, Japan, and Rest of Asia-Pacific). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

The size and share of this market is categorized based on Type (Graphene, Transition Metal Dichalcogenides (TMDs), Black Phosphorus, Hexagonal Boron Nitride, Organic Semiconductors) and Application (Electronics, Optoelectronics, Energy Storage, Sensors, Telecommunications) and End-Use Industry (Consumer Electronics, Automotive, Healthcare, Aerospace, Telecommunications) and geographical regions (North America, Europe, Asia-Pacific, South America, Middle-East and Africa).

The market for semiconductor fabrication materials witnessed significant growth in 2024, prompted by increasing investments in semiconductor fabrication plants, restoration of the supply chain post-pandemic, and continuous technological innovations. The biggest trend was the geopolitical realignment of semiconductor production, with leading economies, including the USA, China, and the EU, ramping up local production through strategic subsidies and trade agreements.

Industry Forecast Table

Metric	Value
Industry Size (2025E)	USD 53.2 billion
Industry Value (2035F)	USD 99.0 billion
CAGR (2025 to 2035)	6.4%

Semiconductor Manufacturing Materials Market Outlook

The global semiconductor manufacturing materials market size was valued at approximately USD 25.3 billion in 2023 and is projected to reach about USD 43.7 billion by 2032, growing at a compound annual growth rate (CAGR) of 6.3% during the forecast period. The growth of this market is driven by the rising demand for advanced electronic devices and the continuous innovation in semiconductor technology. The proliferation of the Internet of Things (IoT), the expansion of 5G networks, and the growing adoption of artificial intelligence (AI) are creating substantial demand for semiconductors, thereby boosting the requirement for semiconductor manufacturing materials.

Several key growth factors are driving the semiconductor manufacturing materials market. Firstly, the increasing adoption of smart devices and consumer electronics, such as smartphones, tablets, and wearable devices, has significantly boosted the demand for semiconductors. As these devices become more sophisticated and feature-rich, the requirements for high-performance semiconductor components have risen, leading to an increased demand for advanced manufacturing materials. Secondly, the burgeoning automotive industry, particularly the rise of electric and autonomous vehicles, is contributing to the market's expansion. Modern vehicles are equipped with numerous semiconductor-based components, necessitating high-quality materials for their manufacturing processes.

Furthermore, the ongoing advancements in semiconductor technology are driving the need for innovative materials. As semiconductor devices become smaller and more complex, manufacturers require materials with superior properties to enhance performance and reliability. Materials such as silicon wafers, photomasks, and photoresists are essential for the fabrication of advanced semiconductor devices. Additionally, the semiconductor industry is witnessing substantial investments in research and development activities, aimed at developing next-generation materials to meet the evolving demands of various applications. This focus on innovation and technology development is expected to fuel the growth of the semiconductor manufacturing materials market.

Another significant growth factor is the increasing investments in semiconductor manufacturing facilities. Governments and private enterprises worldwide are investing heavily in the construction and expansion of semiconductor fabrication plants to meet the growing demand for semiconductors. For instance, countries in the Asia Pacific region, such as China, South Korea, and Taiwan, are making substantial investments in semiconductor manufacturing infrastructure. These investments are aimed at enhancing production capacities, improving technological capabilities, and reducing dependency on imports. The establishment of new semiconductor fabrication facilities will drive the demand for various manufacturing materials, thereby propelling the market growth.

The importance of Semiconductor Materials in the industry cannot be overstated. These materials form the backbone of semiconductor devices, influencing their performance, efficiency, and reliability. As the demand for smaller, faster, and more energy-efficient devices grows, the role of semiconductor materials becomes even more critical. Innovations in materials such as silicon carbide and gallium nitride are paving the way for next-generation semiconductors that promise to revolutionize various applications, from consumer electronics to automotive technologies. The ongoing research and development in this field are crucial for maintaining the momentum of technological advancements and meeting the ever-evolving demands of the global market.

Regionally, the Asia Pacific region dominates the semiconductor manufacturing materials market, accounting for the largest share. The region's dominance can be attributed to the presence of leading semiconductor manufacturing countries, including China, South Korea, Japan, and Taiwan. These countries have well-established semiconductor industries and significant investments in manufacturing infrastructure. Moreover, the growing demand for consumer electronics, automotive electronics, and industrial automation in the Asia Pacific region is driving the demand for semiconductors and, consequently, semiconductor manufacturing materials. North America and Europe also hold substantial market shares due to their advanced semic

Discover trends in Electronics and Semiconductors.

In 2019, of the back-end materials that pertain to assembly, packaging, and testing in the semiconductor manufacturing market, organic substrates made up the most market revenue with a share of 48 percent of the total market. The total market size for semiconductor back-end manufacturing materials was 19 billion U.S. dollars.

In 2023, the size of the semiconductor material market in Taiwan reached over 19 billion U.S. dollars. Precursory materials for semiconductors are silicon, germanium, and gallium. These materials are relatively cheap and easy to come by, which makes computer chips very affordable. For instance, the United States Geological Survey classifies silicon as an abundant material because, together with oxygen, aluminum, and iron makes up around 90 percent of the earth's crust.