Silicon Wafer Market Size, COVID-19 Impact Analysis, Regional Outlook, Application Development Potential, Price Trend, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI2824
Silicon Wafer Market is set to witness promising growth opportunities over 2021-2027 with a positive application outlook in consumer electronics, automotive, and telecommunication sectors. The market will also benefit from the global boom in solar panel installations. A monumental rise in the adoption of smartphones, tablets, laptops, computers and increasing integration of electronics in automotive systems will augment the market growth.
An essential material for semiconductor production, silicon wafer can be found in all types of electronics devices and components. It is used for the fabrication of integrated circuits and microelectronics. Silicon wafer serves as a substrate between the microelectronic components and undergoes numerous microfabrication processes such as doping or ion implantation, etching, and deposition of materials.
Consumer electronics sector will continue to hold a substantial share of market during the forecast period. The demand for more compact electronics has resulted in a high degree of miniaturization. Growing consumer expectations and the presence of a massive tech-savvy consumer base globally will continue to drive the demand for improved consumer electronics gadgets such as smartphones, smart wearables, PCs, smart home devices, and other smart gadgets. Rising disposable incomes in developing countries and increasing acceptance of these gadgets will boost silicon wafer demand significantly.
North America market will experience considerable boom in the forthcoming years led by the presence of established chipmakers in the region. The U.S. and Canada have witnessed a sharp rise in smartphone usage in recent years. The next few years are likely to showcase the rise of 5G-enabled smartphones which will open up promising opportunities for regional manufacturers. Growing federal investment in US’s semiconductor industry will bolster the regional outlook significantly. In May 2021, the U.S. Senate had announced that it will invest USD 52 billion to strengthen domestic semiconductor production in a broader bill to fuel competitiveness against China.
Wafer Works Corporation, Shin-Etsu Chemical Co., Ltd., GlobalWafers Singapore Pte. Ltd., SUMCO Corporation, Shanghai Simgui Technology, Siltronic AG (Wacker-Chemie Dritte Venture GmbH), and Tokuyama Corporation are some of the world’s largest producers of silicon wafer. Partnerships, mergers, and acquisitions are common strategies among manufacturers as they look to foster their market presence as well as product reach.
In June 2021, GlobalWafers Company had signed a USD 800 million deal with GlobalFoundries Inc. to supply specialized 200 mm and 300 mm silicon wafers from its U.S. based factory. The company had acquired a 50.8% share in Germany’s Siltronic AG with a USD 5.3 billion investment in February 2021.
How has COVID-19 affected silicon wafer market demand
Market has experienced slight disruption during the COVID-19 pandemic owing to the temporary suspension of electronics manufacturing activities in many regions. The pandemic had also forced the automotive sector to shut down operations briefly. These factors along with the shortages due to supply chain problems had further amplified the impact of the pandemic. However, with widespread adoption of work from home and remote learning practices, sales of smartphones, laptops, and tablets have gone up in certain markets.
Towards 2020 end, manufacturers were seen ramping up semiconductor production to meet the growing demand from automotive, electronics, and other industries. Chip shortages are still going to affect manufacturing output for some time, but the future of wafer manufacturers is strong. For instance, in November 2020, GlobalWafers had announced full capacity utilization for its 8-inch and 12-inch wafer production lines.
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