Silicon Wafer Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trend, Competitive Market Share & Forecast, 2021 – 2027

Silicon Wafer Market size is projected to grow at a rapid rate owing to the demand for high-performance electronic gadgets. The rise in the number of businesses and the improving standards of living have led to an increased demand for smartphones, laptops, and gadgets. Silicon wafers are used for manufacturing semiconductors that form the base of modern electronic devices. These wafers being extremely clean and devoid of impurities form the perfect substrate material for modern semiconductors. They are used for producing microchips & chips and building ICs that are used in a wide range of electronic devices.
 

The growing importance of renewable energy sources has led to a rise in the demand for solar energy. There is high growth in the number of solar panel installations owing to the rising awareness about the advantages of using solar energy. Solar panels and cells are created using silicon wafers due to their semiconducting properties. The solar band efficiency of 1.1 eV of silicon makes it a practical option to be used for these panels. The abundance of silicon, stable cell efficiencies, and non-toxicity make it a suitable material choice for photovoltaics, boosting the silicon wafer market growth. The high-performance efficiency offered by silicon solar panels is further contributing to the silicon wafer market growth.
 

Technological advancements to enhance the capabilities of wafers will drive the silicon wafer market growth. Automation and AI are used across all the industry verticals to improve the operational efficiency. Products with AI is the latest trend with companies turning to silicon wafers for creating AI-infused technologies. Silicon chips are created with elements that function like neurons to handle deep learning tasks. The trend of miniaturization of electronics followed by advancements in the IoT will also favor the silicon wafer market growth. Silicon chips that support the high-end digital developments will favor the industry expansion.
 

High initial investments associated with the manufacturing of these wafers will pose a threat to the silicon wafer market growth. Moreover, a semiconductor manufacturing unit must be a high-volume production facility to support large orders that further result in very high initial investments. The facility also requires subunits such as water treatment facility, gas supply, and a central utility substation. Budgetary constraints will restrict small players from entering the industry thereby restricting the silicon wafer market growth. Technicians must be trained in handling the entire manufacturing process, further resulting in increased expenses.
 

The demand for wafer sizes larger than or equal to 300 mm will support the silicon wafer market growth. A large wafer diameter enables the production of more semiconductor devices from a single wafer thereby enhancing the efficiency and productivity. The growing demand for chips and enhanced chip throughput enabled by large wafer sizes has led to the evolution of these wafers from half-inch silicon to 300 mm diameter wafers. However, 450 mm wafers are poised to offer several advantages; the 450 mm technology leading to more costly processing tools and less than expected ROI is discouraging the technology adoption.
 

Memory demand is rising across various applications from mobile devices to servers. The rising wafer costs and tight supply constraints are compelling memory manufacturers to transition to higher NAND and DRAM densities. The increasing need for high-memory applications will drive the silicon wafer market growth. Memory and logic devices that include SDRAM, DRAM, GPU, CPU, and flash memory are used in mobile internet devices, gaming devices, digital music players, and computers. Moreover, increasing use of networking devices demanding high logic and memory capabilities will aid the silicon wafer market growth.
 

The growing adoption of automation in the automotive sector will contribute to the silicon wafer market growth. The demand for vehicle electrification and increased connectivity will encourage the R&D in the industry. The introduction of technologies, such as Advanced Driver-Assistance Systems (ADAS), will further aid in the industry growth. There is a growing significance of connected cars with the ongoing trends revolutionizing the automotive sector. The advent of technologies, such as adaptive cruise control and automatic braking systems, will further contribute to the silicon wafer market growth. Key trends, such as IoT, touch-free human-machine interfaces, and connectivity features in cars, will encourage the industry growth.
 

Asia Pacific silicon wafer market is poised to witness growth owing to the booming automotive sector in the region. Several government initiatives in India encouraging foreign investments in the automotive sector have led to the growth of the industry. In addition, the flourishing electronics industry in China will also favor the silicon wafer market growth. The advent of Industry 4.0 and technologies, such as IoT and AI in the automotive sector, will fuel the demand for these wafers for high performance and smooth operation of the vehicle.
 

Key players in the silicon wafer market include Shin-Etsu Chemical Co., Ltd., SUMCO Corporation, Siltronic AG, Shanghai Simgui Technology, Wafer Works Corporation, GlobalWafers Singapore Pte. Ltd., and Tokuyama Corporation. The silicon wafer market is witnessing steadily growing competition with increasing number of players focusing on making investments in the R&D of wafer technology. Companies are trying to expand their market presence by establishing new production facilities.

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