by The wet chemicals for electronics and semiconductor applications are chemicals primarily used for wafer cleaning, etching, and deposition processes during manufacturing of electronic components and integrated circuits. These include acids, bases, solvents, etchants, developers etc. which provide cleaning and processing functions. The increasing demand for electronic devices such as smartphones, smartwatches, laptops and notebooks has been driving the need for electrical components and semiconductors. This has accelerated the production volumes in semiconductor manufacturing facilities, thereby augmenting the consumption of wet chemicals used in fabrication processes.
The Global Wet Chemicals for Electronics and Semiconductor Applications Market is estimated to be valued at US$ 2 Mn in 2024 and is expected to exhibit a CAGR of 9.9% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the Wet Chemicals for Electronics and Semiconductor Applications Market are Novartis AG, Merck & Co. Inc., F-Hoffmann La Roche, Eli Lilly and Company, Bayer AG, AstraZeneca, Astellas Pharma Inc., Amgen Inc., OSE Immunotherapeutics SA, and Bristol- Myers Squibb Company, among others. Growing consumption of electronic goods and integration of semiconductors across different end-use industries has been promoting the increased adoption of wet chemicals. Technological innovations are allowing manufacturers to optimize semiconductor fabrication processes and develop new techniques like 3D wafer manufacturing which requires customized wet process chemistries.
The growing demand for consumer electronics products across the world is propelling the wet chemicals market. Emerging economies in Asia Pacific and Latin America are witnessing rising disposable incomes and purchasing power of consumers which is driving the sales of smartphones, laptops, smart TVs and other consumer electronic devices. This expanding consumer base is fueling the demand from semiconductor manufacturers for wet chemicals used in IC manufacturing.
Advancements in nanotechnology and material science has enabled development of innovative formulation of wet chemicals suited for complex layer deposition and etching steps involved in fabrication of next-generation smaller sized semiconductors and chips with higher performance capabilities. Introduction of chemical wet cleaning processes optimized for 3D wafer manufacturing is also expected to drive innovations in wet process chemistries.
Market Trends
Increasing miniaturization of electronic components: Continuous scaling down of transistor and circuit feature sizes has been increasing the complexity of semiconductor fabrication processes. This is driving innovations for developing new categories of wet chemicals for specialized cleaning and etching functions at nano-level.
Rise of 5G technology: Commercialization of 5G network infrastructure and integration of 5G modems in devices is propelling the requirements for advanced RF components and memory chips. This will augment the demand for customized wet process chemicals from semiconductor manufacturing industry.
Market Opportunities
Development of bio-based and environment-friendly wet chemicals: Growing environmental regulations around electronic waste disposal and stringent emission norms are fueling the need for eco-friendly wet process chemistries. This presents opportunities for biosolvents and bio-surfactants based wet chemical formulations.
Investments in specialty chemical R&D facilities: Leading wet chemical players are investing in advanced research centers focused on developing application-specific formulations for niche semiconductor fabrication steps like EUV lithography. This is expected to boost innovation and customized product offerings.
Impact of COVID-19 on Wet Chemicals for Electronics and Semiconductor Applications Market
The COVID-19 pandemic had a significant impact on the wet chemicals for electronics and semiconductor applications market. During the initial outbreak and subsequent lockdowns imposed globally, the demand and supply chains were disrupted severely. Most of the production facilities and fabs had to shut down temporarily due to extensive lockdowns and travel restrictions imposed by various governments worldwide to curb the spread of the virus. This led to a major decline in production volumes across end-use industries like electronics, semiconductors, and other manufacturing sectors in 2020.
However, with the resumption of economic activities and production in 2021 and 2022, demand started recovering gradually. Still, supply chain constraints persisted due to port congestions and shortage of raw materials and labor. The pandemic accelerated digital transformation across industries, increasing the usage of electronic devices and demand for semiconductors exponentially. This boosted the requirement for critical wet chemicals for manufacturing various components and chips. Going forward, the market is expected to grow at a steady pace due to continuing digitalization trends and investments in advanced technologies like AI, IoT, 5G, and electric vehicles. However, volatility in raw material prices and geopolitical tensions can pose challenges.
North America Witnessed Highest Concentration of Wet Chemicals for Electronics and Semiconductor Applications Market
In terms of value, North America witnessed the highest concentration of the wet chemicals for electronics and semiconductor applications market globally in 2024. The region accounted for over 40% share of the overall market demand. This can be attributed to the presence of leading semiconductor manufacturers and foundries concentrated in the US. Countries like the US and Canada have a robust and advanced electronic and manufacturing industry that demands critical wet chemicals on a large scale.
Asia Pacific Emerging as the Fastest Growing Market for Wet Chemicals for Electronics and Semiconductor Applications
The Asia Pacific region is emerging as the fastest growing market for wet chemicals for electronics and semiconductor applications globally between 2024-2031. It is expected to witness a CAGR of over 12% during the forecast period. This high growth can be accredited to increasing electronics consumption and rising semiconductor manufacturing activities in major economies across the Asia Pacific region like China, South Korea, Taiwan, India, and others. Countries like China and South Korea are global leaders in electronics production and have a substantial presence of foundries and fabs. Furthermore, low-cost manufacturing and presence of leading wet chemicals producers are supporting market growth in the Asia Pacific.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
