May 24, 2023-Semiconductor Chemical Revenues Fall as Energy Prices Rise- Wet Chemical market decline follows wafer start slowdown
May 16, 2023-ALD/CVD Precursors – Better Times Ahead – Market expected to rebound with memory pricing recovery
May 9, 2023-US CHIPS Act- Silicon Carbide (SiC) Wafer Supply Gets Squeezed – Growing Demand Persists as Silicon Wafers Reach Its Limits
April 13, 2023-US CHIPS Act- Opportunities and Issues for the US Semiconductor Industry
March 30, 2023-New Global Semiconductor Packaging Materials Outlook – US$26 Billion market to approach US$30 Billion by 2027
March 22, 2023-Electronic Gas Markets Show Minor Contraction on the Heels of Solid Growth
March 7, 2023-Semiconductor Lithography Materials Trending Upwards – 2023 economic slowdown to cause a short-term dip on photoresists & ancillaries
March 1, 2023-2023 CMC Conference to Host Intriguing Lineup of Speakers – Featuring talks on current trends, issues, and new technologies for the semiconductor materials supply chain
February 28, 2023-Semiconductor Wet Chemicals 1H2023 Trending Down – Although 200+ new layer chip offerings are expected in 2023
February 23, 2023-CMP Pads & Slurries to Slump with Overall Semiconductor Market in 2023 – Supply chain issues easing but still some delays for sub-assemblies and parts
February 15, 2023-CMP Equipment “Ancillaries” Poised for Growth – Increases Driven by 3DFinFET and X-Stack 3DNAND
February 6, 2023-8th Annual CMC Conference in Round Rock, Texas – Join chip fabricators and suppliers in discussing current trends and issues for the semiconductor materials supply chain
January 31, 2023-Semiconductor Sputter Targets Forecasting Decline in 2023 – Suppliers will benefit from slowdown as tight supply will be alleviated
January 24, 2023-Quartz Components Market Expecting Slight Decline in 2023 – Decline may vary in intensity depending on region and ongoing fab expansions
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
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

May 24, 2023

Semiconductor Chemical Revenues Fall as Energy Prices Rise

Wet Chemical market decline follows wafer start slowdown

San Diego, CA, May 24, 2023: TECHCET — the electronic materials advisory firm providing business and technology information on semiconductor supply chains — is forecasting 2023 semiconductor wet chemical revenues to hit $5.2B, a 2% decrease from 2022. This forecast follows wafer start trends, which are also expected to decline by about 3% in 2023. The slowdown is also attributable to rising energy prices and instability from the Russia-Ukraine war, as highlighted in TECHCET’s newly published Wet Chemicals Critical Materials Report™. The strongest of the wet chemicals segments is from phosphoric acid, due to growth in the 3DNAND market. The overall market is forecasted to rebound in 2024, with the 2022-2027 CAGR being 3.9%, as shown in the graph below.

“2023 is teaching us that a holistic approach to the chemical supply chain is required to stay competitive,” states Dan Tracy, Sr. Director at TECHCET. Tracy added, “to be successful in the wet chemicals market, one must be actively involved in all stages of the supply chain.” For example, shortages due to refinery shutdowns affects the cost and availability of multiple chemicals such as IPA and sulfuric acid. Additionally, shortages of fluorspar affect the availability and cost of HF and BOE.

Chemical price increases have occurred due to higher pricing and restrictions of natural gas and petroleum used for power in chemical manufacturing. For example, costs of European electronic chemicals have increased due to rises in the cost of natural gas. Although these natural gas costs have come down from its highs of 2022, chemical prices still remain higher than before the Russia war. Similar trends have been observed in other chemical manufacturing regions over the past two years.
For more details on the Wet Chemicals market segment and growth trajectory, including profiles on suppliers like BASF, Chemtrade, Dupont, Eastman, Fujifilm, and more, go to: https://techcet.com/product/specialty-cleaning-chemicals/

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.

May 16, 2023

ALD/CVD Precursors – Better Times Ahead

Market expected to rebound with memory pricing recovery

San Diego, CA, May 16, 2023: TECHCET — the electronic materials advisory firm providing business and technology information on semiconductor supply chains — is forecasting semiconductor precursor revenues, both for high-ƙ metal dielectrics and low-ƙ dielectrics, to increase in the 2nd half of 2023, rebounding from the current 0% growth rate. The current market flattening is due to reduced memory pricing in production (DRAM and 3DNAND), as explained in TECHCET’s ALD/CVD Precursors Critical Materials Reports™. In 2027, TECHCET expects the revenues of both the high-ƙ and low-ƙ dielectric precursors to rebound significantly, reaching ~19% growth, as shown in the graph below.

The market is forecasted to also rebound from the current wafer start downturn in 2024. With expansions in 2nm and 3nm logic devices, logic wafer starts below 45nm can reach >7% CAGR in 2027. Additionally, logic growth using more mask layers will drive the demand for metal and dielectric precursors related to patterning and low-k. DRAM is also undergoing a transition to EUV (ALD/CVD hardmasks). Continued scaling of 3DNAND by all global fabricators to above 352-368 layers (using four stacks) continues to move even higher, with expectations of >500 layers by 2030. This also continues to drive the need for dielectric stack deposition, high aspect ratio etch (RIE), and deposition (ALD).

Full implementation of High-k/Metal Gate is driving demand for hafnium precursors as well. This has led to continued supply chain issues for hafnium, especially from major surges in aerospace industry demand. While many other strategic metals and rare earths used for semiconductor production primarily rely on China, hafnium does not. “China currently produces hafnium to satisfy its own demand, and demand from the West is met by production from France, the US, and ongoing expansion in Australian mining operations in the New South Wales Dubbo project,” says Jonas Sundqvist, Senior Technology Analyst at TECHCET.

For more details on the Precursor market segment and growth trajectory, including profiles on suppliers like Adeka, Air Liquide, Entegris, Hansol Chemical, and more, go to: https://techcet.com/product-category/ald-cvd-precursors/

May 9, 2023

Silicon Carbide (SiC) Wafer Supply Gets Squeezed

Growing Demand Persists as Silicon Wafers Reach Its Limits

San Diego, CA, May 9, 2023: TECHCET— the electronic materials advisory firm providing business and technology information on semiconductor supply chains —is forecasting continued strong growth for silicon carbide (SiC) wafer through 2023, despite the slowdown in the general global economy and other semiconductor materials markets. In 2022, the SiC N-type Wafer Output Market grew ~15% over 2021, totaling 884k wafers (150 mm equivalent), as highlighted in TECHCET’s new Silicon Carbide Wafers Materials Report. This market is expected to grow even further in 2023, reaching 1072k wafers (just over 1 million 150 mm equivalent) growing ~22% over 2022, as shown below. The overall 2022-2027 CAGR is estimated to be approximately 17%.

High demand for SiC wafers comes as a result of silicon-based power devices approaching its physical limits, particularly for high-speed or high-power applications. Wide bandgap semiconductors represent the most promising of the current alternatives, and SiC is at the forefront in terms of both materials properties and supply chain maturity. Additionally, demand from electric vehicles, charging infrastructure, green energy production, and more efficient power devices in general is pushing demand higher for SiC.

While SiC is growing increasingly popular, chemical properties of the material have made it difficult to process boules into actual wafers. This has led to undersupply in the SiC wafer market. In an effort to increase boule supply over the past several years, a significant number of companies entered into or announced major expansions in SiC boule growth capacity, but very few companies have actually entered the wafering services market.

Some of this gap is being addressed by the vertically integrated SiC device companies, such as Wolfspeed, ON Semiconductor, and ST Microelectronics, who are able to balance their own production capacities internally. Other companies are attempting to address the gap by offering process services, such as X-trinsic and Halo Industries.

For more details on the Silicon Carbide (SiC) Wafer market segment and growth trajectory, go to: https://techcet.com/product/silicon-carbide-wafers/

April 13, 2023

US CHIPS Act- Opportunities and Issues for the US Semiconductor Industry

By Dan Tracy, Sr. Director, TECHCET

San Diego, CA, April 13, 2023: Countries around the world view semiconductor manufacturing as vital for economic growth and national security, as devices power all aspects and sectors of the global economy. Across the globe, politicians, government officials, and semiconductor industry leaders deem to revitalize local semiconductor manufacturing through government-initiated programs and subsidies to strengthen or re-shore domestic semiconductor manufacturing. Some examples are shown in the table below.

Country/Region	Government Initiative
United States	US Chip Act: US$52B program, plus local and state programs
Europe	European Chips Act: proposed €43B. Proposed though not finalized
Japan	$2.8B; up to 1/3 for chips (power, controllers, analog); up to ½ for raw materials
South Korea	Korean Chips Act: financial, regulatory, and tax incentives totaling 340 T Won (~US$259B)
China	US$1.4T pledged for over 5-10 years

For the US, the current CHIPS Act is reminiscent of initiatives in the late 1980s to launch SEMATECH, a partnership between the government and a number of US chipmakers, to counter the growing dominance to device makers in Japan. The SEMATECH initiative was successful in re-establishing the prominence of the US domestic chip making industry; however, globalization and outsourcing/foundry opportunities resulted in strong industry investments across Asia since SEMATECH was launched.

As such, it is estimated that the US chip fabrication global share declined from about 37% in 1990 to about 10% to 12% by 2020. While the share has declined, US semiconductor production still entails 2.3 million Wafer Starts per Month capacity (200 mm equivalent) spread over 27 300 mm production lines; roughly 40 200 mm production lines; and numerous specialty lines producing MEMs/sensors and optoelectronic components.

So, while there is a sizeable chip manufacturing base in the US, politicians and industry leaders seek to revitalize and restore the prominence of chip fabrication in the US given the declining market share and strategic importance of the industry. Plans for such have been in the works since 2019, under the name CHIPS for America Act, and have garnered, for the most part, bipartisan political support. The lawmaking process does involve back-and-forth and negotiations, so took some time for the legislative process to produce a final bill.

The US CHIPS Act signed into law by President Biden in August 2022. The signed CHIPS Act includes $39 billion in tax benefits and other incentives for companies, including non-US headquartered companies, to build new chip manufacturing plants in the US. The CHIPS Act is a 5-year funding program that includes the following:

For fiscal year 2022, US$19 billion has been allocated, “including the US$2 billion for legacy chip production funding. US$5 billion each year from FY23 through FY26.”
“Also US$11 billion appropriated over 5 years for R&D and workforce development programs, and US$2 billion appropriated for on-shore, university-based prototyping, lab-to-fab transition of semiconductor technologies, etc.”

Of interest and concern to companies receiving CHIPS Act support is Section 103 of the legislation, which “stipulates that recipients of Federal incentive funds are prohibited from expanding or building new manufacturing capacity for “certain advanced semiconductors in specific countries that present a national security threat to the United States.” This stipulation has raised concerns and issues concerning possible recipients that currently have manufacturing in China. This is a subject of on-going negotiation between companies and governments with US officials.

With all of that stated, various US government departments and agencies worked on implementing a plan and have rolled out the programming for companies to apply for funding support. The first phase of funding occurred in February of this year and is targeted for device makers. The second phase is expected to roll out by May and will be open to supply chain participants, such as semiconductor material suppliers.

The implementation of the CHIPS Act has generated considerable interest across the industry and has spurred numerous investment announcements over the past couple of years and has already resulted in construction and other activities to move projects forward. The below map highlights some of the major fab announcements and locations across the US. Projects include new fabs being built by TSMC and Intel in Arizona. Intel has longer term plans for fabs in Ohio. In addition, Texas Instruments is constructing a new fab in Texas and announced plans for a new one in Utah. Samsung will also invest in Texas. Micron has plans for new fabs in Idaho and New York.

March 30, 2023

New Global Semiconductor Packaging Materials Outlook – US$26 Billion market to approach US$30 Billion by 2027

San Diego, CA, March 30, 2023: TECHCET and TechSearch International, Inc. recently announced that the market for Semiconductor Packaging Materials totaled US$26.1 billion in revenues for 2022, and is forecasted to approach US$30 billion in 2027. For 2023, packaging materials are expected to decline about -0.6% given the forecasted slowdown in the overall semiconductor industry. Recovery is expected in the second half of 2023, pointing to growth in 2024 that should increase packaging revenues by 5% that year, as indicated in the recently completed 10th edition of the Global Semiconductor Packaging Materials Outlook (GSPMO).

The GSPMO Report is a comprehensive market research study covering key segments of the semiconductor packaging materials market. Available for purchase exclusively through SEMI, this materials report includes a comprehensive look at the market size and growth trends of key packaging materials including substrates, lead frames, bonding wire, encapsulation materials, underfill materials, die attach, solder balls, wafer level package dielectrics, and wafer-level plating chemicals.

Beginning in 2020 through the pandemic, packaging materials experienced strong unit and revenue growth. Changes in end market demand coupled with strained supply chains and logistic constraints boosted pricing for materials across the supply chain. Higher raw material costs, rising energy prices, and soaring logistics costs pushed material suppliers to raise prices, which were passed on to customers. In addition, many material segments were constrained in terms of available production capacity. Being squeezed on rising costs, numerous suppliers limited their capacity related investments. Additionally, as demand rose during the pandemic, supply chain and logistics constrained how rapidly suppliers could expand capacity as available manufacturing equipment was also limited.

The trend in rising material prices was a complete reversal of more than a decade of price reductions, much due to pressure from device makers and OSATs. “Cost-down” became a mantra that limited material suppliers in terms of investments in capacity. These demand driven price increases boosted growth to over 15% in packaging material revenues in 2020, followed by >20% growth in 2021. As long as raw material and energy costs remain high, and the suppliers remain prudent in their capacity expansion plans, current prices are expected to hold.

Wafer-level packaging, flip chip packaging, and heterogeneous integration, including System-in-Package (SIP) form factors are key drivers in new materials development and consumption. For WLP, the largest volume application remains mobile electronics, though other applications are growing, including automotive. Growth in flip chip interconnection remains strong for high performance computing, high frequency communication and other applications, with copper pillar interconnect technology being increasingly used.

The information contained in this report was developed by TECHCET and TechSearch International. The report is available for purchase through www.semi.org: https://semi.org/en/products-services/market-data/packaging-materials-outlook

To discuss the Packaging Materials market and other critical materials needed for chip production, 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/

March 22, 2023

Electronic Gas Markets Show Minor Contraction on the Heels of Solid Growth

San Diego, CA, March 22, 2023: TECHCET— the electronic materials advisory firm providing business and technology information on semiconductor supply chains — reports that the Electronic Gases market segment grew over 8% in 2022, reaching US$6.8 billion in global sales. Going into 2023, TECHCET is expecting a slight contraction of -2% in Electronic Gas revenues due to a slowdown in the overall semiconductor industry, at least through the first half of the year. Growth is expected to return in 2024 and will continue through 2027 with a 6.3% 5-year CAGR reaching US$9.2 billion, as highlighted in https://techcet.com/product/gases/ TECHCET’s most recent update to the Electronic Gases Critical Materials Report™..

Tungsten Hexafluoride (WF6) and Nitrogen Trifluoride (NF3) specialty gases have both faced supply shortages over the past several years. These gases both serve essential purposes in semiconductor manufacturing, as WF6 is used for depositing the W interconnect in NAND memory, and NF3 is the key gas used in the cleaning of process chambers. The supply chains of both gases are expected to continue facing constraints once new chip factories ramp in 2025-2026. By 2024-2025, TECHCET expects a supply/demand imbalance for both gases given limited capacity.

Another gas on TECHCET’s “watch list” is Helium supply, which has been intermittently running short of demand for the past decade. The US BLM’s equipment interruptions and anticipated change of ownership concerns have caused unexpected interruptions of helium supply. Over the past year, the Russia War has further compounded helium supply-chain concerns as Gazprom’s plan to supply 26% of the market has been stalled by the war. Although there is a lull in demand this year, given the slow economy and semiconductor downcycle, the market could once again be in shortage if new sources do not come online in the next 12 months. Looking ahead, helium out of Alberta, Canada, could play a vital role in the market. Additionally, France has announced Europe’s first mobile helium recycling unit to be launched. Whether these new sources can come online before shortages start to surface again is unclear at this time.

Neon sourcing has also been a critical issue that TECHCET continues to monitor and assess. For more details on this and other Electronics Gas market segments, including profiles on key suppliers like ADEKA, Air Liquide, EMD, Entegris, Linde, Hansol Chemical, Gelest, Matheson/ Nippon Sanso Holdings, and more, go to: https://techcet.com/product/gases/..

To discuss the Electronic Gases market and other critical materials needed for chip production, 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/

March 7, 2023

Semiconductor Lithography Materials Trending Upwards

2023 economic slowdown to cause a short-term dip on photoresists & ancillaries

San Diego, CA, March 7, 2023: TECHCET— the electronic materials advisory firm providing business and technology information on semiconductor supply chains — is forecasting the Semiconductor Lithography materials market to dip slightly, declining -2% in 2023, which follows the downward trends of the overall semiconductor market. This slowdown is expected to be short-lived, as 2024 forecasts indicate 9.4% growth over 2023, as highlighted in TECHCET’s most recent update to the Lithography Materials Critical Materials Report™.. The Lithography materials segment, which includes photoresists and ancillaries (developers, ARCs, BARCs, EBRs, etc.), is estimated to grow 4.9% CAGR (2022-2027). The Ancillary materials segment alone is estimated to grow at a 5.1% CAGR over the same period.

The fastest growing lithographic materials continue to be EUV and thick KrF photoresists, both of which are driven by the introduction of new technologies: advanced Logic (EUV) and memory (DUV). Metal oxide (MOX) negative tone EUV resists will also gain traction due to performance capabilities. Older technologies like G & I line are expected to also show growth in proportion to wafer starts, whereas the leading-edge materials will grow at a rate dependent on number of layers for different device types and technology nodes.

Advanced device processes will impact material usage as follows:
• Advanced logic devices will continue to require an increased number of photolithography steps per wafer start, driving for more EUV and increased 193nm (ArF) layers. However, many of the current immersion 193nm (i193nm) process steps are likely to be replaced by EUV, & i193nm related lithography materials will also decline.
• At the Gate-All-Around (GAA), also called nanosheet or nanoribbon transistors nodes, backside power rail will be added which will drive even more litho steps.
• DRAM has also started to use EUV, replacing some ArFi (i193nm) process steps. New DRAM devices are expected to increase overall litho steps per wafer.
• 3D NAND will also continue to add more layers and stacks, increasing the overall number of all process steps, including lithography steps, per wafer.

Other significant trends impacting materials include the focus on the strengthening of in-country supply-chains and chip production. This has started to impact legacy photolithography chemical makers. For example, Chinese companies are emerging as diazo photoresist makers, while Korean lithography material makers are also gaining momentum.

For more details on the Lithography Materials market and growth trajectory, including profiles on suppliers like Avantor, BASF, Brewer Science, DuPont, JSR (Inpria), Chang Chun Petrochemical, TOK, Sumitomo, FujiFilm and more, go to: https://techcet.com/product/photoresists-and-photoresist-ancillaries/.

To discuss the Lithography Materials market and semiconductor process materials issues, 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/

March 1, 2023

2023 CMC Conference to Host Intriguing Lineup of Speakers

Featuring talks on current trends, issues, and new technologies for the semiconductor materials supply chain

San Diego, CA, March 1, 2023: TECHCET— the electronic materials advisory firm providing business and technology information on semiconductor supply chains — brings to the industry an impressive lineup of speakers at the 8th Annual Critical Materials Council (CMC) Conference from April 18-20 in Round Rock, Texas. This year’s conference agenda highlights presentations from chip fabricators, materials and equipment suppliers, parties connected to policy makers, and market research analysts to discuss trends, current issues, and new future technologies in the semiconductor materials supply chains. The honorable Jon Taylor, Corporate VP of Fab Engineering at Samsung Austin Semiconductor, will lead off as the Conference Keynote Speaker followed by a notable list of the industry’s best presenters.

One of this year’s featured speakers will be Corinna Singer, Senior Director of Procurement at Infineon, talking on “Globalization vs. Regionalization and the Impact of Geopolitical Tensions.” Singer will focus on the trend of material supply chains in various regions of the world – namely, why are some growing while others are shrinking? Additionally, Singer will discuss what can be done to counteract this trend. An analysis on the impact of geopolitical tensions on the supply-chain will also be provided, along with lessons learned to better manage supply chains as demand heats up from chip expansions.

Talks this year will also highlight business and technology trends from materials and equipment market analysts from TECHCET, TechIsights and the Yole Group, alongside an array of technical presentations from industry experts. Shivan Ahamparam, Ph.D., Director of Advanced Semiconductor Materials at Air Liquide will speak on such technology trends in her talk, “Unmasking the challenges of Diborane manufacturing and supply.” Given the evolution of diborane, mainly for doping in CVD/Epi applications, there has been a growing need for finer and more reliable control of its use. Ahamparam aims to unveil the challenges that have come up from using diborane, such as being thermally unstable and holding other unique properties, and how it’s use in manufacturing can be improved.

Many other speakers will also be joining Shivan and Corinna at the 2023 CMC Conference. Regina Freed, VP of Alx™ at Applied Materials, will speak on Accelerating Materials Engineering; and Dilan Seneviratne, Ph.D., Director of Substrate Packaging Materials at Intel will speak on Challenges for Advanced Packaging & Materials. The full agenda can be found here: https://cmcfabs.org/cmc-2023-conference-agenda-2/.

The conference will feature 5 main sessions on the following themes: Global Issues & Trends, Advanced Packaging Materials, Immediate Challenges of Materials & Manufacturing, Challenges of Equipment and Component Materials, and Emerging Materials. A special Panel Session on “Universal Challenges to Growth – Data-fication” was recently added that will feature companies from across the ecosystem to give their view of the issues and needs for data connection between and among materials supplier, OEM, and IDM.

For more details on the conference, including the full agenda and registration, visit https://cmcfabs.org/2023-cmc-conference/.

Sponsorship opportunities are still available for the conference! Please email [email protected] for more information.

February 28, 2023

Semiconductor Wet Chemicals 1H2023 Trending Down

Although 200+ new layer chip offerings are expected in 2023

San Diego, CA, February 28, 2023: TECHCET— the electronic materials advisory firm providing business and technology information on semiconductor supply chains — is forecasting the Semiconductor Wet Chemicals market to slow to -0.9% in growth in 2023, as noted in the most recent update to TECHCET’s Wet Chemicals Critical Materials Report™. This slowdown is following downward trends for the overall global economy as risks of recession and rising inflation continue. Through 2023, the semiconductor materials market is expected to be flat, though positive growth could be seen if average selling prices from last year’s demand hold over to this year. By 2H2023, TECHCET is anticipating growth to return, leaving a forecasted 6.4% 5-Year CAGR from 2022-2027.

TECHCET is estimating wafers starts to also decline by about 5% in 2023. Between 2022 and 2023, NAND flash makers are rolling out approximately 200+ layer chips offerings. Into 2026 and 2027, 4XXL and 5 XXL 3DNAND are also expected to surge.

DRAM is currently undergoing a transition to EUV and full implementation of High-k/Metal Gate. Architectural changes and new patterning technology has also driven the need for new unit processes and new materials. With each such change, there is a growing need for more Chemicals and Wet Clean processes.

Several new material expansions have been announced between the US and Korea that should affect the Wet Chemicals market in the coming future. For example, LCY Group based in Taiwan, who is a key supplier to TMSC, has publicly announced an IPA repackaging and purification in Phoenix. Additionally, Chang Chun Group’s $400M investment towards a H2O2, TMAH, and plating solution facility in Arizona is expected to conclude their phase 1 soon.

For more details on the Wet Chemicals market segment and growth trajectory, including profiles on suppliers like AUECC, BASF, Chemtrade, Eastman, Entegris, Fujifilm, and more, go to: https://techcet.com/product/specialty-cleaning-chemicals/

To get a live update on the Wet Chemicals market and semiconductor process materials issues, 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/

February 23, 2023

CMP Pads & Slurries to Slump with Overall Semiconductor Market in 2023

Supply chain issues easing but still some delays for sub-assemblies and parts

San Diego, CA, February 23, 2023: TECHCET— the electronic materials advisory firm providing business and technology information on semiconductor supply chains — is forecasting the Semiconductor CMP materials market to decline around 4% for both pads and slurries in 2023. This decline comes after a year of solid growth in the 2022 CMP segment that reached 3.5B USD in revenue, a 9% increase from 2021, as highlighted in the quarterly update to TECHCET’s Critical Materials Report™ on CMP. The coming decline is highly attributable to general slowdowns in the global economy as seen with rising inflation, increases in the cost of living, and lingering effects of global events like the Russian invasion of Ukraine and COVID-19. This decline is expected to rebound after 2023, given the forecasted 4.8% CAGR for 2022-2027, as shown in the graph below.

For CMP slurries, the strongest growth over the 2021-2026 period is for polysilicon and new metals like ruthenium and cobalt. Similarly, CMP pads are expecting the largest revenue growth for polysilicon. CMP pads are also expecting a demand increase for advanced logic and memory products within the next 3 years.

Issues in the supply chain continue to complicate the CMP material market segment. CMP equipment suppliers are seeing shifts to longer lead times by several months on electronic sub-components which slows down the expansion plans of the device maker. Additionally, transportation delays, major price increases for overseas shipments, and warehousing challenges are all resulting in higher costs and quality issues.

By 2025, there could be a potential upside in the CMP market as chip fabricators and material suppliers begin operating in new expansion facilities. Fujifilm, for instance, has invested US$350 million in its US business, which includes CMP products.

For more details on the CMP market segment and growth trajectory, including profiles on suppliers like Dupont, Cabot Microelectronics, BASF, Asahi Glass, Fujifilm, and more, go to:
https://techcet.com/product/cmp-slurry-and-pads-only/

To meet with TECHCET’s market analysts and discuss CMP 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/

February 15, 2023

CMP Equipment “Ancillaries” Poised for Growth

Increases Driven by 3DFinFET and X-Stack 3DNAND

San Diego, CA, February 15, 2023: TECHCET— the electronic materials advisory firm providing business and technology information on semiconductor supply chains — has announced that the market segment for Semiconductor CMP Ancillaries (pad conditioners, CMP rings, filters, and brushes) will reach US$1.55 B by 2027, growing at a CAGR of 6%. However, the market is expected to decline slightly this year and return to growth in 2H2023. “Increases in revenues experienced through 2021-2022 were the result of increases in equipment demand, replacement parts, and raw material shortages,” indicated TECHCET’s Chief Strategist, Karey Holland, PhD. Looking at 2023, this market is expected to slow by -2.2%, which follows the decline in overall chip demand for the year. Inflation, threat of recession, and rising interest rates, in combination with a growing memory chip inventory from 2022 are all factors leading to reduced demand for this year. TECHCET forecasts this chip demand slowdown to recover by 2024, as shown in the figure below, from TECHCET’s newly released Critical Materials Report™ on the CMP Ancillaries Market. .

“Coming growth for the CMP Ancillaries market segment is largely influenced by the need for more CMP process steps with each new generation of device (both logic and memory),” said Dr. Holland. Right now, FinFET transistors require about 41 CMP steps (for total metal and dielectric CMP steps). 2 stack 3DNAND have about 28 CMP process steps and another 8 additional CMP steps will be added as 3DNAND makers transition to next generation nodes.

Technology developments in new logic nodes like GAA/Nanosheet ForkSheet are adding new challenges to CMP, using thinner layers and requiring better thickness control and new materials. This will place an addition burden on filters and pad conditioners. New materials like cobalt, ruthenium, molybdenum, and zirconium will force fabs to revisit CMP cost of ownership because these new materials and processes will impact the service life and types of materials used for ancillaries, like pad conditioners, filters and brushes. For example, demand for lower surface roughness on dielectric layers as these layers get thinner is driving demand for nano-ceria slurries which may also require new versions of the slurry filters.

TECHCET anticipates there to be more distributed production in regions of high growing demand to help offset any future availability delays with chip expansions. Additionally, new production facilities are expected to be built from the ground up in Arizona and Texas to support the expansions for TSMC and Samsung.

For more details on the CMP Ancillaries market segment and growth trajectory, including profiles on suppliers like 3M, Entegris/Cabot, Diamonex, Pall, Kinik, Saesol, Nitta-DuPont, Aion, Rippey, and more, go to
https://techcet.com/product/cmp-ancillaries-2/

To meet Karey Holland and discuss CMP and the Ancillaries market segment and technology trends, don’t miss the 2023 CMC Conference in Austin, Texas from April 18-20. This year’s theme is “Are Critical Materials for Chip Expansions Ready for Launch?” To register and for more information, visit https://cmcfabs.org/2023-cmc-conference/

February 6, 2023

8th Annual CMC Conference in Round Rock, Texas

Join chip fabricators and suppliers in discussing current trends and issues for the semiconductor materials supply chain

San Diego, CA, February 6, 2023: TECHCET— the electronic materials advisory firm providing business and technology information on semiconductor supply chains — is hosting the 8th Annual Critical Materials Council (CMC) Conference from April 18-20 in Round Rock, Texas. This conference brings together chip fabricators, supplier companies, legislative policy makers, and market research analysts to discuss trends and issues in the semiconductor materials supply chains. This year’s conference will center on the following hot question, “Are Critical Materials for Chip Expansions Ready for Launch?” and will feature the honorable Jon Taylor, Corporate VP of Fab Engineering at Samsung Austin Semiconductor, as the Conference Keynote Speaker.

Joining Jon are dozens of other impressive speakers including Carolyn Duran, Ph.D., VP and Engineering Manager of Components Research at Intel, Regina Freed, VP at Applied Materials, Dhiman Bhattacharyya, Ph.D., Senior Technical Staff Member at Global Foundries, Corinna Singer, Senior Director of Procurement at Infineon, Lita Shon-Roy, President and CEO at TECHCET, and many more.

The conference will feature 6 impactful sessions, including an interactive poster session. Each session will focus on a different theme, including Global Issues & Trends, Advanced Packaging Materials, Immediate Challenges, Equipment and Component Materials, and Emerging Materials. The conference will also include various networking events, including the signature “Not-So-Usual Roundtable” where attendees can meet speakers, engage in trivia, and partake in local beer tasting.

For more details on the conference, including the full agenda and registration, visit https://cmcfabs.org/2023-cmc-conference/

Sponsorship opportunities are still available for the conference! Please email [email protected] for more information.

January 31, 2023

Semiconductor Sputter Targets Forecasting Decline in 2023

Suppliers will benefit from slowdown as tight supply will be alleviated

San Diego, CA, January 24, 2023: TECHCET— the electronic materials advisory firm providing business and technology information on semiconductor supply chains — states that the slowdown in the Semiconductor Industry is starting to impact the Sputtering Target market (excluding precious metals), now expected to see a decline of at least -2% in target revenues for 2023. This follows a strong 2022 totaling US$818 million in revenues, growing > 7% from 2021. This is slightly lower than originally expected, due to wafer starts and shipments declining in the second half of 2022, as highlighted in the quarterly update to TECHCET’s Critical Materials Report™ on the Sputtering Target Market. An increase in demand is expected by the second half of 2023. The market should return to net positive growth in 2024, in preparation for what will be robust demand from $500B worth of chip expansion plans over the next 5 years.

“Target suppliers have indicated that supply/demand balance for Copper/Copper Alloy targets have improved with slowing industry conditions,” states Dan Tracy, Sr. Director at TECHCET. Since 2020, the supply/demand balance for these target materials have been tight, thus constraining availability in light of strong demand. Suppliers have also reported that lead-times for their target manufacturing equipment is returning to normal. The 2023 industry slowdown will benefit suppliers as they expand their capabilities and prepare to support the next upturn.

Many commodity metal segments experienced higher pricing pressures in 2021 through early 2022. While commodity metal pricing has pulled back from these higher levels as the global economy has slowed, target suppliers report high-purity metal pricing has not pulled back in line with commodity prices. In addition, machining costs and metal processing are key cost factors in the final target costs.

Longer term, there are structural issues in the supply of key metals given strong demand projections. This is especially due to green energy/zero emission related demand, and limited growth projections with mining output.

For more details on the Sputter Targets market segment and growth trajectory, including profiles on suppliers like Linde, KFMI, Honeywell, JX, Furuya Metal Co., and more, go to: https://techcet.com/product/sputter-targets/

To see Dan Tracy live and discuss the markets for sputtering targets and other critical materials, don’t miss the 2023 CMC Conference in Round Rock, 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/

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/

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.

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/.

2023- TECHCET News