The electronic chemicals market is a vital part of the industrial chemicals sector. Electronic chemicals are specialty chemicals used in the production of integrated circuits, semiconductors, printed circuit boards (PCBs), and other electronic components. These include photoresists, wet chemicals, CMP slurries, gases & precursors, and others. Photoresists are light-sensitive polymers that are applied to semiconductor wafers to transfer the circuit patterns during semiconductor manufacturing. Wet chemicals find major applications as an aqueous cleansing agent during the cleaning of surfaces. CMP slurries are used to smoothen the wafer surface by removing high and low spots during the polishing process. Gases & precursors are used as source materials during the deposition & etching processes.
The global Electronic Chemicals Market is estimated to be valued at US$ 67.92 Bn in 2023 and is expected to exhibit a CAGR of 6.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the electronic chemicals market is the growing adoption of miniaturization and integration in electronics. The trend of miniaturization and integration has increased the complexity of semiconductor chip designs and manufacturing processes. This has raised the demand for advanced and high-purity chemicals with smaller particle sizes. Furthermore, increasing investments in R&D by major manufacturers for developing innovative process chemicals is expected to drive the market growth over the forecast period. There is also a rising focus on green electronic chemicals to adhere to strict environmental regulations regarding hazardous chemical emission during the production of electronics. This is opening up opportunities for naturally derived and recyclable electronic chemicals.
Key players operating in the electronic chemicals market are BASF SE, Air Products and Chemicals Inc., The Dow Chemical Company, Merck KGaA (known as EMD Performance, Materials in North America), SUMCO Corporation, JSR Corporation, Shin-Etsu Chemical Co., Ltd., Cabot, Microelectronics Corporation, Tokyo Ohka Kogyo Co., Ltd., Honeywell International Inc. Companies compete based on achieving superior process yields, minimized defects, and delivery of tailored solutions to meet the evolving needs of chip manufacturers. Consolidation activities among industry players are also common to gain enhanced process expertise.
Threat of new entrants: The electronic chemicals market requires high capital investments and technical expertise. This poses significant barriers for new entrants.
Bargaining power of buyers: Large electronics manufacturers have significant bargaining power over electronic chemical suppliers due to their high demand. However, the presence of many specialized chemical suppliers balances this power.
Bargaining power of suppliers: Key raw material suppliers such as gas suppliers possess some bargaining power due to their specialized product offerings required for critical manufacturing processes.
Threat of new substitutes: New materials finding applications as substitutes can threaten existing product offerings. However, substitutions are challenging given extensive industry validation and R&D required.
Competitive rivalry: The market is highly competitive with major players differentiating based on technical expertise, product quality, and customer service.
The global electronic chemicals market is expected to witness high growth, exhibiting CAGR of 6.4% over the forecast period, due to increasing semiconductor demand for use in various electronic devices. Semiconductor manufacturers rely heavily on electronic-grade chemicals for critical fabrication processes such as etching, cleaning, and planarization.
The Asia Pacific region currently dominates the global electronic chemicals market, with China and other East Asian countries accounting for over 60% share. Significant manufacturing capabilities for electronic goods in the region coupled with government investments to promote the semiconductor industry are driving high demand. Europe and North America are other major markets, although growth rates remain moderate compared to Asia Pacific.
- Source: Coherent Market Insights, Public sources, Desk research
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