2023- TECHCET News



January 24, 2023

Quartz Components Market Expecting Slight Decline in 2023

Decline may vary in intensity depending on region and ongoing fab expansions

San Diego, CA, January 24, 2023:  TECHCET— the electronic materials advisory firm providing business and technology information on semiconductor supply chains — has announced that the Quartz Equipment Components Market for semiconductor manufacturing is expecting a downturn of -5% in 2023, as highlighted in the bi-yearly update to TECHCET’s Quartz Components CMR™ Market Research Report. This forecast is dependent on multiple variants, including declining demand, and end-market inventory sales. The market is also expected to respond differently in different regions given chip fab investment plans and government subsidies. The quartz market downturn comes after a strong year of sales in 2022, which totaled US$2.11B, increasing 23% from 2021.

Some minor signs of demand slowing for quartz components have already begun in some regions. Currently, inflation is becoming an issue affecting the cost structure. Shipping costs have returned to low level, while labor and energy costs are still at high level, and this is likely to continue until further deepening of the market correction.

Ongoing fab expansions are expected to balance the anticipated 2023 decline in revenues, which should return to growth in future years. Recent fab announcement and investments totaling more than US$500B will help to boost longer-term growth. For the quartz suppliers, new expansion activities by Felihua and Beijing Kaide in China are expected in 2023, and Maruwa is expanding in Japan in 2024. Ferrotec has also invested in Malaysia, though the time frame of their expansion build is unclear.

For more details on the Quartz Components Market, including profiles on suppliers like Applied Ceramics, Ferrotec, Hayward Quartz Technology, Tosoh, SEH/Heraeus, and more, go to: https://techcet.com/product/quartz-equipment-components/

To get a live update on the market on equipment components and other critical materials, don’t miss the 2023 CMC Conference in Austin, Texas from April 18-20 on “Are Critical Materials for Chip Expansions Ready for Launch?” To register and for more information, visit https://cmcfabs.org/2023-cmc-conference/

ABOUT TECHCET: TECHCET CA LLC is an advisory services firm expert in market and supply-chain analysis of electronic materials for the semiconductor, display, solar/PV, and LED industries. TECHCET offers consulting, subscription service, and reports, including the Critical Materials Council (CMC) of semiconductor fabricators and Data Subscription Service (DSS). For additional information, please contact [email protected], +1-480-332-8336, or go to www.techcet.com.

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January 10, 2023

Slowing Industry Conditions Temporarily Eases Supply Strain in 2023 for Silicon and SOI Wafers

Investments in increased capacity not expected to alleviate strain until 2024-2025

San Diego, CA, January 10, 2023:  TECHCET—the advisory firm providing business and technology information on the semiconductor materials supply chain — has announced that the Silicon Wafer market is forecasted to hit a downturn that will result in a decline of at most -2% in 2023. This market decline comes after Silicon Wafer shipments reached an all-time high of 7.8M WSPM in 2022. With this expected decline, the prior strain of tight wafer supply will be temporarily alleviated in 2023. The industry has already begun to slow in recent months, driving improved availability as seen by the wafer spot market in the 3Q quarter of last year.

“As limited 300 mm brownfield manufacturing capacity expansion existed in 2022 for the top Silicon Wafer suppliers, the total availability capacity was essentially capped at about 7.8 million 300 mm wafers per month (wpm),” states Dan Tracy, Sr. Director at TECHCET. The result was an “aggregate” capacity utilization topping 99% for the wafer industry. For 2023, ongoing yield improvements and process optimization, coupled with emerging greenfield expansion, will boost available 300 mm capacity to around 8 million wpm. With a forecasted decline of at most -1% in 300 mm shipments for 2023; this will result in an “aggregate” 300 mm manufacturing capacity utilization in the range of 95% to 96%.

Additional greenfield capacity will come online in 2024. However, the forecasted 6% growth in 300 mm shipments will return “aggregate” 300 capacity utilization to the upper 90% range. Of course, actual capacity utilization is a function of wafer product type, doping levels, epitaxial layer requirements, and other customer specifications.

As mentioned in TECHCET’s Critical Materials Market Analysis Report on Silicon Wafers, all the top five wafer suppliers have announced new wafering manufacturing capacity, and the full impact of this capacity expansion would impact supply mainly in 2024 and 2025. Since the release of the report, GlobalWafers has announced more details about its 3.2 million-square-foot silicon wafer plant in Sherman, Texas. The facility could eventually produce 1.2 million wafers per month after multiple stages of equipment installation.

SK Siltron announced total investments of 2.3 trillion won ($1.65 billion) in its silicon wafer business over the next five years, which could come online in three phases. Additionally, Wafer Works Corp, announced a NT$15 billion (US$470.7 million) 300 mm wafer plant investment at the Central Taiwan Science Park. This plant will have an installed capacity of 200,000 wpm.

For more details on the Silicon Wafer market growth, including profiles on suppliers like SEH, Sumitomo, Siltronic, Siltron, and GlobalWafers, and more, go to: https://techcet.com/product/silicon-wafers/

To get a live update on the market for wafers and other materials, don’t miss the 2023 CMC Conference in Austin, Texas from April 18-20 on “Are Critical Materials for Chip Expansions Ready for Launch?” To register and for more information, visit https://cmcfabs.org/2023-cmc-conference/

ABOUT TECHCET: TECHCET CA LLC is an advisory research firm focused on analyzing the electronics materials supply chains for the global semiconductor, display, solar/PV, and LED industries. TECHCET offers consulting, supply chain analysis reports, and subscription services, including the Critical Materials Council (CMC) of semiconductor fabricators and CM Data subscription services. For additional information, please contact [email protected], +1-480-332-8336, or go to www.techcet.com.

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January 4, 2023

2023 Semiconductor Plating for Device and Packaging Expecting Slowdown as Global Economic Conditions Weaken

New Technologies such as Ruthenium and Molybdenum in Barrier Layers May Also Replace Old Plating Standards

San Diego, CA, January 4, 2023:  TECHCET—the advisory firm providing business and technology information on the semiconductor materials supply chain — announced that the revenue growth for the 2023 Semiconductor Plating Market is expected to rise only 2% above 2022. This is a significant decline compared to the 8.3% growth seen in the 2022 market from 2021. One main reason for this forecasted slowdown is the slower economic conditions that are expected to impact the 2023 semiconductor market, at least through the first half of the year. TECHCET now forecasts plating chemical revenues to grow to US$1.02B in 2022, and then to US$1.04B in 2023 (Source: TECHCET’s newly released CMR™ on Metal Plating).

Stronger growth rebounds are expected in 2024 as demand for more devices for numerous applications (electric cars, more fast charging stations, more data storage, etc.) are expected to produce higher density and lower power devices. In addition, the US Chips Act and similar investments by Europe and China are expected to contribute towards market growth. Both these factors will drive more metal interconnect layers and more advanced packaging.

TECHCET’s Sr. Director, Dan Tracy, states, “Advanced Packaging requirements continue to be driven by increases in Wafer Level Packaging (WLP), and by consumption in the high-performance devices that utilize Redistribution Layers (RDL), interposers and Through Silicon Via (TSV) technologies.” Heterogenous integration, EMIB, Chiplets, and the power devices are expected to challenge the plating requirements in terms of quality of material being deposited.

Logic Gate All-Around (GAA) transitions node is planning to use backside power rails which appear to add at least four metal interconnect layers to the backside of the wafers.

TECHCET is following the introduction of Ruthenium or Molybdenum to possibly displace the Tantalum and Cobalt barrier layer at the GAA nodes. Ruthenium or Molybdenum (ALD or CVD, not plating) will possibly fill the interconnects and vias between M0 to M3 metal layers for Advanced Logic. Possible wafer backside connections to the backside power rail will add Copper plating to possibly match lost the loss of Copper plating at the M0-M3 layers.

For more details on the semiconductor Electroplating Chemicals market, supply-chain and growth trajectory, including supplier profiles on BASF, Dupont, Chang Chun Group, Ishihara Chemical/Unicon, and more, go to: https://techcet.com/product/metal-chemicals-for-fe-advanced-packaging/.

ABOUT TECHCET: TECHCET CA LLC is an advisory research firm focused on analyzing the electronics materials supply chains for the global semiconductor, display, solar/PV, and LED industries. TECHCET offers consulting, supply chain analysis reports, and subscription services, including the Critical Materials Council (CMC) of semiconductor fabricators and CM Data subscription services. For additional information, please contact [email protected], +1-480-332-8336, or go to www.techcet.com.

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