2022 – TECHCET News


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.

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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.

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