2022 – TECHCET News


June 21, 2022

Specialty Cleans Markets – Advanced Nodes Drive Growth

In the midst of mounting technical challenges for wet chemical suppliers

San Diego, CA, June 21, 2022:  TECHCET—the electronic materials advisory firm providing business and technology information— announced a large growth forecast for Specialty (Formulated) Clean Chemistries as part of the overall Wet Chemicals outlook through 2026. In 2021, the Specialty Cleans market topped US$1 billion, and it is forecasted to reach US$1.1 billion in 2022. Through the forecasted period, this market will grow at a 6% CAGR, primarily due to increases in process layer, and advanced technology nodes often having multiple cleaning processes per mask step, as highlighted in TECHCET’S newest Wet Chemicals and Specialty Cleans Critical Materials Report™.

Specialty cleans consist of Post Etch Residue Removals (PERR) and post-PCMP (pCMP) cleans, which increasingly require new and advanced formulations to keep pace with new materials, high layer counts, and tighter specifications for particle size. PERR usage has increased with each progressive logic node, while pCMP cleaning requires a chemical solution which can remove residual particles of both slurry and removed material layers.

“Capital investments by the suppliers in the technology are critical to keep pace with leading-edge device process technologies”, states Terry Francis, Director of Technology & Sr. Analyst of TECHCET. “Suppliers that are not investing in advanced formulations are at risk of losing market share in this market.”

Volumes of PERR dramatically increase for advanced Logic and 3DNAND device production. This is driven by the increased number of mask steps, the increased layers in 3DNAND, and the number of Etch-Trim steps. Extreme Ultraviolet Lithography (EUVL) is helpful in leveling the number of mask steps and changing the PERR Chemistry, but it is currently at a low volume of wafer starts across the industry.

PERR is a very application specific space that requires cleans formulated specifically for the process. This is mainly because of the number of sensitivities to the chemicals along with galvanic corrosion issues. Because of this, this market requires both past knowledge of PERR cleaning, alongside adjustments of formulations per device level and surfaces exposed.

pCMP Cleans will also continue to be played as custom formulations and added value area protect suppliers’ margins and market position. Cleaning solutions must not damage remaining and exposed wafer layers, including dielectric films and copper.

Francis also noted, “because of these technical challenges, the Specialty Cleans market is not easy to enter for a supplier without a close partnership with the device maker.”

For more details on the Wet Chemicals & Specialty Cleans market segments, or for TECHCET consulting services on specialty cleans go to: https://techcet.com/product/specialty-cleaning-chemicals/.

ABOUT TECHCET:  TECHCET CA LLC is an advisory services firm focused on process materials supply-chains, electronic materials business, and materials market analysis for the semiconductor, display, solar/PV, and LED industries. Since 2000, the company has been responsible for producing the Critical Material Reports™, covering silicon wafers, semiconductor gases, wet chemicals, CMP consumables, Photoresists, and ALD/CVD Precursors. The Critical Materials Council (CMC) of semiconductor fabricators is a business service offered by TECHCET, and includes materials supplier Associate Members. For additional information about reports, market briefings, CMC membership, or custom consulting please contact [email protected], +1-480-332-8336, or go to www.techcet.com.

Back to top


June 15, 2022

Electronic Gases Markets – To Approach a US$9 Billion Market in ‘22

New materials and increasing chip design complexity drives supply-chain problems for Specialty Gases, Rare Gases and Helium

San Diego, CA, June 15, 2022:  TECHCET—the electronic materials advisory firm providing business and technology information— reports that the Electronic Gases market revenues hit US$6.3 billion in 2021 and is forecasted to grow to 8% in 2022. In its recently completed Electronic Gases Report , TECHCET forecasts the 2022 Electronic Gases market will reach almost US$6.8 billion—growth primarily attributed to Specialty Gases. As leading-logic and new generations of memory continue to ramp, Specialty Gases consumed in etching, deposition, chamber cleaning, and other applications remain in strong demand. This segment is forecasted to increase by 10% in 2022 with ~9% CAGR through to 2026, as indicated in TECHCET’s newly released 2022 Critical Materials Report™ on Electronic Gases, authored by Jonas Sundqvist, PhD.

In the near-term, there are supply issues for key industry gases, such as helium and neon; and in the longer term, the supply/demand balance for gases such as nitrogen trifluoride (NF3), tungsten hexafluoride (WF6), and others could tighten as industry demand grows.

Neon supply capacity is at risk due to the Russian invasion of Ukraine. Some gas supply from these sources may be at a permanent loss. Helium supply-chain disruptions stemming from lack of Russian supply availability are starting to have an impact on the semiconductor industry. Russia’s current export ban on helium and rare gases will prolong the supply-chain issues with Helium and rare gases like Neon. The war is only part of the helium supply issue – maintenance problems, delayed product availability, and production disruptions in other helium producing regions are all adding to the tightness in the supply chain.

As new semiconductor device fabs come online globally over the next several years, supply constraints may appear for other gases (B2H6, WF6, NF3, CF-gases) since demand increases are expected to outpace supply. With semiconductor manufacturers increasing fab production capacity, the demand for diborane (B2H6) material is rapidly increasing as it is critical in many device applications such as in doped carbon hard masks.

As more CVD/ALD deposition process passes are added for multi-patterning and EUV-lithography, cleaning demand is increasing, thus we anticipate huge growth in NF3 (used for chamber cleaning). With the current projections, demand may outrun supply causing tightness in NF3 availability come 2025-2026. Similarly, TECHCET estimates there may be supply issues with WF6 around 2025-2026. However, the possibility of molybdenum (Mo) replacing tungsten (W) for memory applications could circumvent any WF6 shortage. WF6 demand is primarily driven by vertical scaling in 3DNAND to higher layer counts, though new interconnect materials could lessen any future supply/demand imbalance.

Among the sources of electronic gases highlighted in TECHCET’s CMR are Air Products, Air Liquide, EMD / Merck, Linde, Matheson Gas, SK Materials, Gazprom, Huate Gas, Peric, and many others. For more details on the Electronic Gases market segments and growth trajectory go to: https://techcet.com/product/gases/

ABOUT TECHCET:  TECHCET CA LLC is an advisory services firm focused on process materials supply-chains, electronic materials business, and materials market analysis for the semiconductor, display, solar/PV, and LED industries. Since 2000, the company has been responsible for producing the Critical Material Reports™, covering silicon wafers, semiconductor gases, wet chemicals, CMP consumables, Photoresists, and ALD/CVD Precursors. The Critical Materials Council (CMC) of semiconductor fabricators is a business service offered by TECHCET, and includes materials supplier Associate Members. For additional information about reports, market briefings, CMC membership, or custom consulting please contact [email protected], +1-480-332-8336, or go to www.techcet.com.

Back to top


May 31, 2022

Semiconductor Quartz Materials Market – Positive Demand

Strained but Expansion Plans being Pulled-in

San Diego, CA, May 31, 2022:  TECHCET—the electronic materials advisory firm providing business and technology information— announced the 2021 worldwide market for fabricated quartz parts reached US$1,718 million, growing 25% above 2020, with segments of the market in Taiwan and Korea growing over 30%. The global fabricated quartz parts market will expand another 18% in 2022.

In addition to the fabricated parts segment of the quartz market, the base material segment (tubes, rods, ingots, and boules) underwent 27% revenue growth in 2021 and is forecasted to increase 18% or so in 2022. The base material industry segment is in a healthy position because of this positive revenue growth. Base material suppliers are able to invest so to keep up with forecasted industry demand going forward, thus TECHCET does not foresee any shortage of quartz base materials. However, fabricated components supply remains constrained.

As outlined in TECHCET’s newly released report on the Quartz Materials , fabricated quartz components supply is out of balance with demand and strained given the hot market conditions that started in 2021 that are continuing into 2022. The supply chain continues to adapt and work through production and logistic issues; however TECHCET observes backlogs and extended lead-times for these products.

“Production issues were the norm in 2021 given strong market demand, and issues have remained so far in 2022”, said Kuang-Han Ke, TECHCET’s Senior Analyst covering consumable equipment parts. “Current sentiment is that quartz suppliers are starting to pull in expansion plans scheduled for 2023 into 2022. Expansion plans are starting to happen”.

Like other semiconductor industry supply chain sectors, the fabricators need to address issues with delivery schedules, planning for the acquisition of needed production equipment, and the hiring and training of new personnel.

It is interesting to observe that both fab and QEM customers focused quartz parts sourcing in 2021 towards the major and mid-size fabricators. This trend has contributed to the supply chain strain and delivery backlogs. There are options available for customers to work with and develop smaller suppliers to address supply chain issues, though this approach has some risks.

For more details on the Quartz Material market segments and growth visit:
https://techcet.com/product/quartz-equipment-components/

For more information about how to attend the CMC Conference After Hours, go to:
https://cmcfabs.org/cmc-conference-2022/

ABOUT TECHCET:  TECHCET CA LLC is an advisory services firm focused on process materials supply-chains, electronic materials business, and materials market analysis for the semiconductor, display, solar/PV, and LED industries. Since 2000, the company has been responsible for producing the Critical Material Reports™, covering silicon wafers, semiconductor gases, wet chemicals, CMP consumables, Photoresists, and ALD/CVD Precursors. The Critical Materials Council (CMC) of semiconductor fabricators is a business service offered by TECHCET, and includes materials supplier Associate Members. For additional information about reports, market briefings, CMC membership, or custom consulting please contact [email protected], +1-480-332-8336, or go to www.techcet.com.

Back to top


May 24, 2022

CMP Consumables – Supply is Tight and Costs Expected to Rise

as legacy products are replaced by leading edge

San Diego, CA, May 24, 2022:  TECHCET—the electronic materials advisory firm providing business and technology information— announced the Chemical Mechanical Planarization (CMP) consumables market for semiconductors grew almost 13% in 2021 to reach US$3.0 billion. The CMP market, including both slurries and pads, will grow almost 9% in 2022 to US$3.3 billion, and the forecast through 2026 shows this market growing at over a 6% CAGR.

CMP processes continue to increase as leading-edge devices ramp up in production. The logic market is seeing a shift from FinFET to GAA, which increases the number of CMP steps and the introduction of new materials for the metal gate, as indicated in “TECHCET’s 2022 Critical Materials Report™ on CMP Consumables.” Under consideration are cobalt, ruthenium, molybdenum, nickel, and various alloys. Strong growth in leading edge DRAM and 3DNAND is boosting demand for tungsten, copper and cobalt pads and slurries. Growth is also driven by advanced 3DNAND as wafer starts for higher layer generations ramp up in production.

Demand will continue to slow for consumables for legacy products, though slurries and pads for commonly used materials, such as oxide and tungsten, will continue to be available. As new materials replace those used in legacy products, availability of consumables for the legacy materials will decrease as some suppliers will discontinue their consumables legacy product lines. This will result in less competition and will likely drive-up prices for legacy CMP products.

Slurry prices are expected to hold or increase, particularly on specialty slurries and on small quantity orders over the next year or two. Nanoceria slurries are in growing demand, driven by the need for improved surface quality and defectivity control.

Due to the lack of competition in the pad market, pad prices will hold firm. Small quantity orders will receive a premium price. However, if the new pad supplier entrants in China gain position in the local market, it could soften prices for competitive pads in China.

For more details on the CMP Consumables market segments and growth trajectory go to: https://techcet.com/product/cmp-slurry-and-pads-only/

For more information about how to attend the CMC Conference After Hours, go to:
https://cmcfabs.org/cmc-conference-2022/

ABOUT TECHCET:  TECHCET CA LLC is an advisory services firm focused on process materials supply-chains, electronic materials business, and materials market analysis for the semiconductor, display, solar/PV, and LED industries. Since 2000, the company has been responsible for producing the Critical Material Reports™, covering silicon wafers, semiconductor gases, wet chemicals, CMP consumables, Photoresists, and ALD/CVD Precursors. The Critical Materials Council (CMC) of semiconductor fabricators is a business service offered by TECHCET, and includes materials supplier Associate Members. For additional information about reports, market briefings, CMC membership, or custom consulting please contact [email protected], +1-480-332-8336, or go to www.techcet.com.

Back to top


May 17, 2022

Europe Chemical Supply Chain – Impact of Fab Expansions

Risk of Supply Interruption Grows With an Increase in Imports

San Diego, CA, May 17, 2022:  TECHCET—the electronic materials advisory firm providing business and technology information— examined critical materials dependencies of Europe’s expanding chip-making industry. Six high purity chemicals were identified as having the highest risk of supply interruption by major Europe chip fabricators: liquid and gas hydrochloric acid (HCl), sulfuric acid (H2SO4), hydrofluoric acid (HF), ammonia hydroxide (NH4OH), and isopropyl alcohol (IPA). Demand for these materials is expected to grow 40+% over the next 5 years, as shown in TECHCET’s study titled “The Impact Of Chip Expansions On The Europe Wet Chemical Supply Chain Report.” By 2027, more than 50% of total demand will have to be supplied by imports should there be no additional expansion in local chemical production.

As indicated by the above Figure, TECHCET’s study shows that about 50% of the NH4OH is currently imported; other chemicals have a 20% to 30% dependency, with exception of HCl at < 10%. This picture will change in coming years as new fabs and new chip making capacity come online in Europe.

TECHCET anticipates a 5% CAGR (Compound Annual Growth Rate) growth in wafer starts from Europe-based semiconductor makers through 2027, with the ≤20 nm fabrication node capacity having the strongest growth. (This is nearly double the CAGR experienced over the past 5-10 years.) Europe demand of higher purity material is expected to climb as many of the fab expansions will include more leading-edge capacity. Consequently, the dependence on imported chemicals will rise unless investments are made for manufacturing ultra-high purity chemicals in Europe.

TECHCET sees the local chemical supply-chain as currently strained and challenged to try and supply the upcoming demand. Over the years, many chemical producers have shifted their focus on growing their production in Asia due to lower cost conditions and larger potential demand. This is causing a shrinking availability of locally produced chemicals.

Suppliers are open to investing in capacity and adding capabilities in Europe but find it difficult to meet corporate ROI expectations. Support is needed through co-investments, capital support (including government), and guidance and assistance with regulatory compliance. A return on investment needs to be realized as suppliers will not expand without margins or longer-term business to justify the investment. Multiyear supply commitment, predictable volumes, and reasonable expectations on pricing to spread/share risks are just a few criteria suppliers seek to address in deciding on an investment plan.

Given the supply chain constraints and chip industry growth expected in the next 3-5 years, the semiconductor makers in Europe should put in place strategies to support their demand for these key chemicals. Two key strategies should be considered: 1) look for alternative sources of supply, and 2) work with the government and/or investment community to bring more local chemical production back into Europe.

For more details on the Europe Chemical market segments, issues, and growth trajectory go to: https://techcet.com/product/the-impact-of-chip-expansions-on-the-europe-wet-chemical-supply-chain-new/

For more information about how to attend the CMC Conference After Hours, go to:
https://cmcfabs.org/cmc-conference-2022/

ABOUT TECHCET:  TECHCET CA LLC is an advisory services firm focused on process materials supply-chains, electronic materials business, and materials market analysis for the semiconductor, display, solar/PV, and LED industries. Since 2000, the company has been responsible for producing the Critical Material Reports™, covering silicon wafers, semiconductor gases, wet chemicals, CMP consumables, Photoresists, and ALD/CVD Precursors. The Critical Materials Council (CMC) of semiconductor fabricators is a business service offered by TECHCET, and includes materials supplier Associate Members. For additional information about reports, market briefings, CMC membership, or custom consulting please contact [email protected], +1-480-332-8336, or go to www.techcet.com.

Back to top


May 10, 2022

Semiconductor Materials at a Critical Tipping Point

Key Industry Issues Revealed

San Diego, CA, May 10, 2022:  TECHCET—the electronic materials advisory firm providing business and technology information— held its highly successful and well-attended 2022 Critical Materials Conference in Chandler, Arizona on April 28th and 29th. Over 300 attendees and speakers participated in the event to hear about and to discuss semiconductor material issues and trends that are critical to the entire semiconductor industry supply chain—now and in the future.

2022 CMC Conference Keynote Speaker, John Whitman, Corporate Vice President, Operations Central Team & Procurement at Micron Technologies Corp., and Karey Holland, Ph.D., Sr. Advisor and CMC Conference Co-Chair, TECHCET

The opening keynote for the conference was delivered by John Whitman, Corporate Vice President, Operations Central Team & Procurement; Micron Technologies Corp. and addressed the topic of “Covid Impacts on our Supply Assurance Playbook”. The Covid pandemic and subsequent logistic and other supply chain issues over the past two years have highlighted critical issues for the semiconductor industry. Just-in-time delivery has lessened as a procurement priority, and now manufacturers focus on supply chain stability. It is important for device makers to build their supply chain around Business Continuity Plans (BCP) so to ensure production schedules are maintained.

Industry-wide, there is an opportunity for companies to share information through digitization of supply-chain data. With sharing of information and data, companies across the supply chain can collaborate and solve critical issues with respect to materials delivery and performance, thus optimizing semiconductor processing.

This technical conference includes 5 impactful sessions with focuses on 1) Business Trends & Global Issues, 2) Immediate Challenges of Materials & Manufacturing, 3) Future Challenges for Equipment & Component Processes, 4) Emerging Materials & Processes, and 5) Materials for Advanced Packaging and Heterogeneous Integration.

The Conference has just opened up registration for “After Hours” interaction offering online viewing of presentation videos and pdf downloads, and virtual networking opportunities with other “attendees.”

  • On Day 1, sessions 1 through 3 cover a gamut of topics critical to the semiconductor industry supply chain. Topics from the industry outlook for devices, semiconductor manufacturing equipment and materials, to water supply challenges, green manufacturing initiatives, and workforce development were all discussed.
  • On Day 2, the event focused on emerging materials applications including materials needed for 3nm and smaller technology nodes as well as material challenges of interposes versus bridges and other issues concerning wafer level modeling materials.

For more information about how to attend the CMC Conference After Hours, go to:
https://cmcfabs.org/cmc-conference-2022/

ABOUT TECHCET:  TECHCET CA LLC is an advisory services firm focused on process materials supply-chains, electronic materials business, and materials market analysis for the semiconductor, display, solar/PV, and LED industries. Since 2000, the company has been responsible for producing the Critical Material Reports™, covering silicon wafers, semiconductor gases, wet chemicals, CMP consumables, Photoresists, and ALD/CVD Precursors. The Critical Materials Council (CMC) of semiconductor fabricators is a business service offered by TECHCET, and includes materials supplier Associate Members. For additional information about reports, market briefings, CMC membership, or custom consulting please contact [email protected], +1-480-332-8336, or go to www.techcet.com.

Back to top


April 21, 2022

2022 Strong Demand Straining Litho Material Supply-Chains

Supply Chain Pressures Expected to Drive Pricing Upward

San Diego, CA, April 21, 2022:  TECHCET—the electronic materials advisory firm providing business and technology information— announced that the Photoresist market is forecasted to increase 7% to top US$2.2 billion, up from US$2.1 billion in 2021. This is largely attributed to the rise in KrF type resist demand used for 3D NAND production, and the rise in EUV resists for leading-edge logic devices.

Demand for semiconductor materials such as photoresist (and the extension and ancillary materials necessary to process photoresists) is high, and we expect prices to be pushed higher as supply chains continue to impact raw material availability and costs. Chemical makers are experiencing higher costs for polypropylene, ethylene, resins, containers, and labor. Photoresist suppliers, in general, have been increasing product prices to combat inflationary and supply chain pressures.

EUV type resists are gaining momentum as large semiconductor makers have ramped EUV materials usage. The DRAM segment will be ramping EUV lithography as well, thus, further contributing to growth in this resist segment.

TECHCET is forecasting growth of both Extension and Ancillary materials growing 5% to 6% CAGR by volume through to 2026.

An interesting trend to observe in this materials segment is the on-going investments by China-based suppliers to develop photoresist materials. China is increasing investment in photoresist manufacturing to reduce dependency on foreign sources for these critical materials. These unfolding development initiatives in China will impact the lithography materials markets in the years ahead. In the meantime, the companies traditionally supplying the lithography materials market have announced new investments, especially manufacturing capacity in South Korea and Taiwan, to boost photoresist production.

For more details on the Lithography materials market segments and growth trajectory go to:
https://techcet.com/product/photoresists-and-photoresist-ancillaries/

Don’t forget to register for the 2022 Critical Materials Conference (CMC) on April 28-29 in Chandler, AZ!

ABOUT TECHCET:  TECHCET CA LLC is an advisory services firm focused on process materials supply-chains, electronic materials business, and materials market analysis for the semiconductor, display, solar/PV, and LED industries. Since 2000, the company has been responsible for producing the Critical Material Reports™, covering silicon wafers, semiconductor gases, wet chemicals, CMP consumables, Photoresists, and ALD/CVD Precursors. The Critical Materials Council (CMC) of semiconductor fabricators is a business service offered by TECHCET, and includes materials supplier Associate Members. For additional information about reports, market briefings, CMC membership, or custom consulting please contact [email protected], +1-480-332-8336, or go to www.techcet.com.

Back to top


April 7, 2022

Semiconductor Wafers Supply-Chain Critically Tight

Threat of Shortages Increasing

San Diego, CA, April 7, 2022:  TECHCET—the electronic materials advisory firm providing business and technology information— announced the Silicon Wafer market, including SOI wafers, will increase more than 10% in 2022 to top US$15.5 billion, up 14.8% from 2021. Strong overall demand and higher pricing related to increasing raw material and energy costs are driving up revenues. This will be the first time in over a decade that the wafer market will see two consecutive years of double-digit growth.

As with other semiconductor materials, supply of Silicon Wafers is tight, and lead-times are increasing. There is no excess capacity in the market – 300 mm wafering capacity is on the order of 7,200 wafers per month (wpm), which is approximately equal to the projected demand for this year. However, Silicon Wafers are specialized to customer specifications and device requirements, so capacity constraints vary from customer to customer depending on product mix, as well as volume demand.

Debottlenecking and some brownfield expansions are ongoing. This may partially alleviate the current supply constraints; however, such manufacturing capacity growth will not be enough to satisfy projected wafer demand in 2022 and 2023. Some wafer suppliers have stated current manufacturing cannot fully support demand, so customers will be on allocation.

With this context provided, the major wafer suppliers, like Shin-Etsu Handotai (SEH), SUMCO, GlobalWafers, Siltronic, and SK Siltron, have indicated that they will invest in greenfield plants to further boost wafering capacity. It will take time, 2-3 years, for plants to be constructed and equipped so production from new greenfield plants will not contribute to wafer output until 2024. Until then, supply will be tight causing prices to increase. Raw material and energy costs are also on the rise, adding to the upward price pressure.

The oncoming wafer shortage will create an opportunity for newcomers – emerging 300 mm wafer suppliers in China, like Zing Semiconductor, could help fill some of the demand if they are able to meet qualification standards for 300 mm production wafers as well as test/monitor wafers.

For more details on the Silicon Wafer Target market segments and growth trajectory go to:
https://techcet.com/product/silicon-wafers/

Don’t forget to register for the 2022 Critical Materials Conference (CMC) on April 28-29 in Chandler, AZ!

ABOUT TECHCET:  TECHCET CA LLC is an advisory services firm focused on process materials supply-chains, electronic materials business, and materials market analysis for the semiconductor, display, solar/PV, and LED industries. Since 2000, the company has been responsible for producing the Critical Material Reports™, covering silicon wafers, semiconductor gases, wet chemicals, CMP consumables, Photoresists, and ALD/CVD Precursors. The Critical Materials Council (CMC) of semiconductor fabricators is a business service offered by TECHCET, and includes materials supplier Associate Members. For additional information about reports, market briefings, CMC membership, or custom consulting please contact [email protected], +1-480-332-8336, or go to www.techcet.com.

Back to top


March 22, 2022

Sputtering Target Demand Remains Strong – Metal Supply Chain Stressed

Metal Pricing on the Rise Driven Further by Russia/Ukraine Turmoil

San Diego, CA, March 22, 2022:  TECHCET—the electronic materials advisory firm providing business and technology information— announced the Sputtering Target market for semiconductors increased 11.5% in 2021 (excluding precious metal targets) to reach US$764 million. The sputtering target market will further grow to 7% in 2022 to approximately US$820 million as demand continues to remain strong, though the global metal supply chains face many stresses.

Semiconductor target suppliers report strong demand continuing through 2022. Supply of high-purity copper, aluminum, and titanium is expected to remain tighter in 2022; however, target manufacturers with internal metal purification capacity will have more flexibility around high-purity metal supply constraints. When it comes to expanding capacity, target suppliers are encountering problems. For example, the delivery of machine tools, casting and rolling equipment needed for sputter target making have extended lead-times causing delays in expansion plans.

Rise in Metal Prices Pushing Further Upward: Metal pricing is now under new upward pressures given geopolitical issues surrounding Russia, the metals market response to the war, and increased energy costs. Titanium (Ti) sponge pricing is expected to increase as large aeronautical manufacturers refrain from sourcing of Ti sponge out of Russia. This will increase demand for sponge material from Japan and other nations, thus pushing prices higher. Additionally, spot market prices for some metals are shooting up, as investors speculate on availability of materials coming out of Russia. Finally, energy and transportation costs are on the rise, adding to the upward price trend. These issues, coupled with limited public announcements on new investments to expand target manufacturing capacity, are driving higher prices across the sputtering target supply chain.

In this environment, fab customers will likely seek out smaller suppliers to support demand growth, though such suppliers will require support and close partnerships with fabs to deliver targets required for leading-edge applications.

For more details on the Sputtering Target market segments and growth trajectory go to:
https://techcet.com/product/sputter-targets/

Don’t forget to register for the 2022 Critical Materials Conference (CMC) on April 28-29 in Chandler, AZ!

ABOUT TECHCET:  TECHCET CA LLC is an advisory services firm focused on process materials supply-chains, electronic materials business, and materials market analysis for the semiconductor, display, solar/PV, and LED industries. Since 2000, the company has been responsible for producing the Critical Material Reports™, covering silicon wafers, semiconductor gases, wet chemicals, CMP consumables, Photoresists, and ALD/CVD Precursors. The Critical Materials Council (CMC) of semiconductor fabricators is a business service offered by TECHCET, and includes materials supplier Associate Members. For additional information about reports, market briefings, CMC membership, or custom consulting please contact [email protected], +1-480-332-8336, or go to www.techcet.com

Back to top


March 15, 2022

Wet Chemicals Challenges to Growing Demand and Imports – Double-Digit Growth; Changing Market Landscape

Acquisitions and Investments to Alter Supply Chains

San Diego, CA, March 15, 2022:  TECHCET—the electronic materials advisory firm providing business and technology information— announced a positive growth outlook for Wet Chemicals through 2026; The 2022 Wet Chemicals, including both Basic Chemicals and Specialty Cleans, market is forecasted to surpass US$2.5 billion, as semiconductor wafer starts push forward and the number of process steps increases for leading-edge devices. Challenges exist in the market: both raw material and logistic costs rise in the near-term; and purity and residue removal at leading-edge nodes pushes the yield envelope during processing. Asia Imports for high purity chemicals appear to be the only supply currently available that can satisfy forecasted demands.

Acquisitions and investments will be changing the market landscape for the Wet Chemicals segments. Numerous announcements have been made concerning new plants and plant expansions to boost chemical manufacturing technology in regions of strong fab investments: US (Arizona area); China; South Korea; and Taiwan. The investments occurring in South Korea continue the localization trend of boosting domestic supply of key chemicals critical to the semiconductor fabs there.

China is a key source of raw materials for manufacturing critical Wet Chemicals, and surging production costs and strong domestic demand has resulted in higher pricing for chemicals. For example, both Sulfuric and Hydrofluoric Acids prices increased in 2021. Pricing pressures remain in the marketplace, especially for the supply chain in China, as energy costs/constraints and environmental issues will likely keep upward pricing pressures in place over the foreseeable future.

The Specialty Cleans segment, which includes Post-Etch Residue Removal (PERR) and post-Chemical Mechanical Planarization (pCMP) cleaning, will experience 6.8% growth in 2022 and a 5% Compound Annual Growth Rate (CAGR) through the 2021 to 2026 forecast period. PERR formulations are proprietary and precise control of the formulations and the process is critical for high yields. Cobalt CMP is a relatively new process and is being incorporated into all leading-edge logic devices at 5 nm and below process nodes.

For Basic Chemicals, lower levels of purities are required for Isopropyl Alcohol (IPA) and Sulfuric Acid in leading-edge in logic processes, and this presents new manufacturing challenges for the suppliers. Usage of Special Phosphoric Acid blends are growing and are critical to 3D NAND growth.

For more details on the Electronics Gas market segments and growth trajectory go to:
https://techcet.com/product/specialty-cleaning-chemicals/

Don’t forget to register for the 2022 Critical Materials Conference (CMC) on April 28-29 in Chandler, AZ!

ABOUT TECHCET:  TECHCET CA LLC is an advisory services firm focused on process materials supply-chains, electronic materials business, and materials market analysis for the semiconductor, display, solar/PV, and LED industries. Since 2000, the company has been responsible for producing the Critical Material Reports™, covering silicon wafers, semiconductor gases, wet chemicals, CMP consumables, Photoresists, and ALD/CVD Precursors. The Critical Materials Council (CMC) of semiconductor fabricators is a business service offered by TECHCET, and includes materials supplier Associate Members. For additional information about reports, market briefings, CMC membership, or custom consulting please contact [email protected], +1-480-332-8336, or go to www.techcet.com

Back to top


March 3, 2022

Electronic Gas Markets – Strong Growth, Pressing Supply-Chain Issues

Neon Gas Faces Supply Issues Due to the Russia/Ukraine Conflict; Supply Constraints for Helium Gas in 2022

San Diego, CA, March 3, 2022:  TECHCET—the electronic materials advisory firm — announced a positive growth outlook for Electronic Gases through 2026. The 2022 Electronic Gas market is expected to top US$7 billion, driven mainly by logic chip fab expansions. Despite an expected 8% CAGR, there are pressing supply-chain issues, both nearer term and possibly longer term, exist in this industry segment. The Russia-Ukraine war is sparking growing concerns relating to the availability of gases such as neon, helium and other gases critical to semiconductor production around the globe.

The turmoil in the region, and related economic sanctions against Russia, will likely affect several key gases used by the semiconductor industry. Neon and helium are two examples. TECHCET’s latest analysis shows that majority of all high purity neon imports into the US is coming from the Ukraine. This represents <50% of total US demand.

TECHCET’s contacts in Ukraine indicate that rare gas purifiers in Ukraine have been temporarily shut down due to the conflict. So far there has only been an interruption of 5-6 days. However, if the fighting lingers on this could have a major impact on the chip industry that has been pushing hard to increase production.

Many of the supply-chains that support the industry are running thin on capacity. Investments in more material production has been lacking and demand for materials has been growing so fast that material pinch points exist in nearly every material segment, including gas processing equipment and subsystems. On-going issues on lead-times for all types of components related to gas processing (tool gas box upgrades, precursor deliver systems, bulk refill) are expected to impact lead-times for gas and precursor supply systems

“Even those material supply-chains that were looking fairly balanced in 2020 are increasingly getting pinched and any perturbation in the supply-chain can cause shortage issues,” said Lita Shon-Roy, TECHCET’s President & CEO. Helium is a prime example where hiccups in the supply-chain are causing increased lead-times and availability problem as the chip industry pushes up their demand. The US BLM, the US’s key source of helium, has been experiencing maintenance issues, delaying product availability, and Russia’s Gazprom purified helium production has been delayed (6 months or more) due to fire incidents over the past several months. “Add war into the mix and supply can be even further strained,” offered Shon-Roy.

As new semiconductor device fabs come online in the next few years, supply constraints may appear for other gases (B2H6, WF6, NF3, CF-gases) as demand increases are expected to outpace supply.

For more details on the Electronics Gas market segments and growth trajectory go to:
https://techcet.com/product/gases/

Don’t forget to register for the 2022 Critical Materials Conference (CMC) on April 28-29 in Chandler, AZ.

ABOUT TECHCET:  TECHCET CA LLC is an advisory services firm focused on process materials supply-chains, electronic materials business, and materials market analysis for the semiconductor, display, solar/PV, and LED industries. Since 2000, the company has been responsible for producing the Critical Material Reports™, covering silicon wafers, semiconductor gases, wet chemicals, CMP consumables, Photoresists, and ALD/CVD Precursors. The Critical Materials Council (CMC) of semiconductor fabricators is a business service offered by TECHCET, and includes materials supplier Associate Members. For additional information about reports, market briefings, CMC membership, or custom consulting please contact [email protected], +1-480-332-8336, or go to www.techcet.com.

Back to top


February 1, 2022

Supply-Chain Threats from Russia-US Tensions

Can Dependencies on Russia Materials Impact US Chip Production?

San Diego, CA, February 1, 2022: TECHCET addresses the Supply-Chain Threat from Russia-US turmoil—as the threat of war from Russia on Ukraine wears on, the potential for materials supply interruption is now a concern. TECHCET analysts have uncovered US dependencies on Russian C4F6, Neon, and Palladium, critical materials used to make semiconductor chips.

Russia is a crucial source of C4F6 which several US suppliers buy and purify for use in advanced node logic device etching and advanced lithography processes for chip production. The US market consumes about 8MT of C4F6 per year.

US Neon supply, used for laser gas (needed for lithography), is almost entirely from Ukraine/Russia. Russia produces Neon, a byproduct of steel manufacturing. This Neon is then sourced and purified by a specialized Ukrainian company.

Russia is also a key Palladium (Pd) supplier, along with South Africa, and supplies approximately 33% of the global demand. Palladium is used in sensors and emerging memory (MRAM), and as a plating material for some packaging technologies. Pd is primarily employed as a catalyst, and is especially important for automotive emission systems.

If the conflict escalates, and/or if the US imposes more sanctions on Russia, could Russia retaliate by withholding critical materials needed for US chip production? TECHCET’s CEO/President Lita Shon-Roy states, “The answer is YES—because the conflict may impede exports from Ukraine, Neon supply would be immediately impacted.” Moreover, C4F6 and Palladium exports that come directly from Russia could also be affected and used as leverage against trade sanctions. Shon-Roy adds, “We hope it will not come to that, however, if the current situation escalates, US chip makers may suffer material supply interruptions.”

For the latest information on business and technical trends including materials supply chain issues, contact, [email protected], 1-480-382-8336, or go to Techcet.com.

Don’t forget to register for the 2022 Critical Materials Conference (CMC) on April 28-29 in Chandler, AZ.

ABOUT TECHCET:  TECHCET CA LLC is an advisory services firm focused on process materials supply-chains, electronic materials business, and materials market analysis for the semiconductor, display, solar/PV, and LED industries. Since 2000, the company has been responsible for producing the Critical Material Reports™, covering silicon wafers, semiconductor gases, wet chemicals, CMP consumables, Photoresists, and ALD/CVD Precursors. The Critical Materials Council (CMC) of semiconductor fabricators is a business service offered by TECHCET, and includes materials supplier Associate Members. For additional information about reports, market briefings, CMC membership, or custom consulting please contact [email protected], +1-480-332-8336, or go to www.techcet.com

Back to top


January 17, 2022

2022 Semiconductor Materials Outlook

COVID-19 Pandemic Still Having Lasting Effects on All Materials

San Diego, CA, January 17, 2022:  TECHCET—the electronic materials advisory firm — announced that global revenues for semiconductor manufacturing and packaging materials grew approximately 12% year-over-year (YoY) in 2021 to ~US$57.8 B, and are expected to grow 7% in 2022 to over US$61.7 B. The COVID-19 pandemic has created strong demand for both logic and memory ICs to support continued Work from Home and School from Home, and as such demand is expected to increase despite expanding availability of virus vaccines. The compound annual growth rate (CAGR) 2020-2025 is forecasted at > 6% as per the latest TECHCET Critical Materials Reports (CMR) and shown in the figure below.

Strong growth in 3DNAND and advanced logic devices is expected to be the leading driver for materials revenue growth through 2025. As indicated by TECHCET’s Critical Materials ReportsTM and market research consulting:

Top Concerns About Supply Availability – Demand Outstripping Supply

  • Silicon wafer supply-chain is increasingly strained by growing demand with minimal additional wafer making capacity in the near-term.
  • Multiple materials segments including gases and wet chemicals are being impacted by raw material availability issues from China, driven by electric power limitations and regulations, in addition to increase in local demand for materials.
  • Equipment Parts capacity is likely to remain below demand for the next year as equipment and raw materials needed to increase volumes are experiencing long lead-times, 2X-3X normal.
  • Even if the pandemic subsides later this year, the supply tightness is expected to continue beyond 2022 as parts will be needed to support growing 3DNAND and leading-edge logic device production.

Continued high growth in ALD/CVD precursors is expected, as leading-edge Logic and Memory chip demand will accelerate consumption in this materials segment. Additionally, more precursors are being demanded by new processes for advanced devices incorporating 3D-stacked scaling and new patterning processes.

For the latest information on business and technical trends in devices and materials attend the CMC Conference 2022 April 28-29, in Chandler, AZ.

For More information on TECHCET’s Critical Materials Reports™ and Market Briefings: TECHCET CMRs

ABOUT TECHCET:  TECHCET CA LLC is an advisory services firm focused on process materials supply-chains, electronic materials business, and materials market analysis for the semiconductor, display, solar/PV, and LED industries. Since 2000, the company has been responsible for producing the Critical Material Reports™, covering silicon wafers, semiconductor gases, wet chemicals, CMP consumables, Photoresists, and ALD/CVD Precursors. The Critical Materials Council (CMC) of semiconductor fabricators is a business service offered by TECHCET, and includes materials supplier Associate Members. For additional information about reports, market briefings, CMC membership, or custom consulting please contact [email protected], +1-480-332-8336, or go to www.techcet.com.

Back to top


January 6, 2022

Consumables Industry Feeling a Swell in Demand

CMP Slurry and Pad Market Forecasted 13% Growth for 2021

San Diego, CA, January 6, 2022:  TECHCET—the electronic materials advisory firm — announced that CMP consumables demand is surging upward as device makers continue to push up production, and equipment suppliers scramble to build their backlog. “Shipments of CMP pads and slurries are at a 10-year high,” states Lita Shon-Roy, President of TECHCET.

The 2021 revenue forecast for the CMP slurry market is a TAM US$1.89 B growing 13% over 2020, with a 5-yr CAGR 8.8%; from TECHCET’s analysis of CMP Pads & Slurry markets. The strongest segments are Cobalt and PolySi slurry, while the Cu, Tungsten, and Oxide segments hold the largest revenue. Under normal market conditions prices are being driven down by competition and pressure from device makers persists in attempts to reduce costs. However, during this high growth period, we expect prices to hold steady or increase slightly. Slurries for advanced products will support higher prices because they are not as readily available.

The 2021 revenue forecast for the CMP pad market is a TAM of US$1.15B, also growing 13% year over year. A 6.2% CAGR is expected (2020 to 2025); lower growth than the slurry market due to increased pad life and price competition from China. The largest growth segments include Cobalt and PolySi pads, while oxide, tungsten, and Cu bulk pads make up the majority of the revenues. Due to the strength of the major shareholders like DuPont and Cabot in the pad market, pad prices will hold firm. However, if the new entrants in China are starting to gain position in their local market, which will lead to price competition in China. As for other process materials, shipping costs of CMP consumables have dramatically increased, which will be passed on to the customer.

Supply Chain Concerns:

  • Transportation delays, huge price increases for overseas shipments, warehousing challenges are all resulting in higher costs and quality issues for some slurries.
  • Equipment suppliers are seeing long-lead times on sub-components and some process materials which are slowing down the expansion plans of device makers.
  • Higher than expected materials demand is making the supply-chain tight and may ultimately result in shortages
  • Increasing dependencies on Asian suppliers of chemicals pose a greater risk of supply-interruption given ongoing logistics problems caused by persistent COVID19 and variants.

For more information about the CMP Slurry and Pad market, check out TECHCET’s report on CMP Slurry, Pads & Conditioners:
hhttps://techcet.com/product/cmp-slurry-and-pads-only/

ABOUT TECHCET:  TECHCET CA LLC is an advisory services firm focused on process materials supply-chains, electronic materials business, and materials market analysis for the semiconductor, display, solar/PV, and LED industries. Since 2000, the company has been responsible for producing the Critical Material Reports™, covering silicon wafers, semiconductor gases, wet chemicals, CMP consumables, Photoresists, and ALD/CVD Precursors. The Critical Materials Council (CMC) of semiconductor fabricators is a business service offered by TECHCET, and includes materials supplier Associate Members. For additional information about reports, market briefings, CMC membership, or custom consulting please contact [email protected], +1-480-332-8336, or go to www.techcet.com.

Back to top