Silicon Wafer Market

Global Silicon Wafer Market:

The global silicon wafer market size reached US$ 12.2 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 17.5 Billion by 2032, exhibiting a growth rate (CAGR) of 4% during 2024-2032. The growing environmental concerns about high carbon emissions from fuel-based power plants, the rising installation of solar power plants, and the increasing demand for wireless computing devices represent some of the key factors driving the market.

Silicon Wafer Market Analysis:

• Major Market Drivers: The rising demand for advanced electronic gadgets is one of the key drivers stimulating the market. Moreover, the increasing adoption of hybrid and electric vehicles to minimize fuel dependency and reduce the emissions of harmful vehicular exhausts in the air is also acting as another significant growth-inducing factor.
• Key Market Trends: The widespread installations of solar power plants to generate renewable energy are among the emerging trends bolstering the market. Apart from this, the growing usage of wireless computing devices, such as gaming consoles, portable personal computers (PCs), e-readers, tablets, smartphones, etc., is further positively influencing the market.
• Competitive Landscape: Some of the prominent companies in the market include GlobalWafers Singapore Pte. Ltd, Okmetic Oy, Shanghai Simgui Technology Co. Ltd., Shin-Etsu Chemical Co., Ltd, Silicon Materials, Inc, Siltronic AG, SK Siltron Co., Ltd., Sumco Corporation, Tokuyama Corporation, Virginia Semiconductor, Inc., and Wafer Works Corporation, among many others.
• Geographical Trends: According to the report, Asia Pacific currently dominates the overall market, owing to the elevating number of semiconductor manufacturers that need these components to support their chip fabrication operations. Furthermore, government bodies and players in the private sector across the region are investing heavily in enhancing domestic capabilities and competitiveness, thereby propelling the industry demand.
• Challenges and Opportunities: High capital investments and supply chain disruptions are hindering the market growth. However, the increasing adoption of emerging technologies, such as 5G, IoT, artificial intelligence, etc., to develop novel product variants will continue to drive the market in the coming years.
   

Silicon Wafer Market Trends:

Expanding Use of GPS Tracking Systems

GPS tracking systems rely on GPS receiver chips, which are semiconductor devices manufactured on silicon wafers. The growing adoption of GPS tracking systems across various industries, including transportation, logistics, personal tracking, and sports, is acting as a significant growth-inducing factor. For instance, according to an article published by Lowry Solutions, the widespread implementation of global positioning system (GPS) technology revolutionized the transportation industry. As a satellite navigation system, GPS delivers real-time location information upon request and enables the tracking of object movements. The logistics industry can benefit greatly from utilizing GPS tracking software, which includes RFID tracking devices, since it offers numerous advantages. It makes it easier to locate the car on a map, which improves customer happiness and operational effectiveness. This, in turn, leads to increased demand for silicon wafers used in the fabrication of these chips. Moreover, the development of more advanced GPS tracking systems requires higher-performance GPS chips with improved accuracy, sensitivity, and power efficiency. Semiconductor manufacturers are continuously innovating and developing new chip designs that utilize advanced manufacturing processes and materials. This drives the demand for specialized silicon wafers capable of meeting the stringent requirements of modern GPS chips. For instance, in January 2024, Nordic Semiconductor introduced a pre-certified development kit and system-in-package (SiP) chip, nRF9161, intended to power 5G non-cellular and cellular IoT technologies. Additionally, it exhibits excellent position tracking, a long battery life, and robust connectivity. It can also connect to LTE-M, NB-IoT, as well as DECT NR+ networks and provides assistance via the Nordic Developer Academy and their nRF Connect SDK. These innovations are expected to escalate the silicon wafer market demand over the forecasted period. 

Rising Demand for Semiconductors

The proliferation of smartphones, tablets, laptops, smartwatches, and other consumer electronic devices drives significant demand for semiconductor devices. For instance, according to Statista, the sales of consumer electronics are anticipated to reach approximately 9,014 million pieces by 2028. Moreover, global smartphone mobile network subscriptions accounted for 7 billion in 2023 and are expected to surpass roughly 7.7 billion by 2028. These devices rely heavily on various semiconductor components, such as microprocessors, memory chips, sensors, and connectivity chips, all of which are manufactured on silicon wafers. Apart from this, the growing applications of new technologies, including 5G, IoT, and artificial intelligence, by silicon wafer manufacturers are inflating the need for a diverse range of semiconductor devices. For instance, in March 2024, Cerebras Systems launched Wafer Scale Engine 3 (WSE-3), a revolutionary AI wafer-scale chip alternative to the WSE-2. The device is equipped with four trillion transistors created using TSMS's 5nm-class fabrication method, 44GB of on-chip SRAM, a peak performance of 125 FP16 PetaFLOPS, etc. Cebera’s WSE-3 can be utilized to train some of the industry's most powerful AI models. Besides this, government bodies and companies worldwide are investing extensively in semiconductor manufacturing to enhance domestic capabilities, promote innovation, and address supply chain vulnerabilities. For instance, in March 2024, the government in India approved an investment of about Rs 91,000 Crore to set up the country's first commercial semiconductor fabrication plant or fab unit by a joint venture between Tata Electronics and Taiwan's Powerchip Semiconductor Manufacturing Corp at Dholera in Gujarat. These investments will continue to elevate the adoption of silicon wafers over the foreseeable future.

Applications in Automotive Industry

The rising demand for silicon wafers in the automotive industry is one of the key factors adding to the market growth. The transition towards electric vehicles and the development of autonomous driving technology requires advanced semiconductor components. Silicon wafers are essential for manufacturing the semiconductor devices used in electric vehicle powertrains, battery management systems, sensor arrays, and onboard computing systems for autonomous driving. For instance, according to an article published by Wafer World, the production of integrated circuits (ICs) for ADAS components, including cameras, LiDAR systems, and radar sensors, depends heavily on silicon wafers. These parts allow functions that make electric vehicles safer and more appealing to buyers, like autonomous emergency braking, adaptive cruise control, lane-keeping assistance, and pedestrian recognition. Apart from this, regulatory authorities around the world are implementing various regulations to boost the production and adoption of electric vehicles (EVs), which further drives the demand for silicon wafers used in EV components. In addition, they also offer subsidies, loans, tax credits, or rebates to manufacturers, which positively influence the silicon wafer price trends. For instance, in February 2024, the U.S. Department of Energy’s (DOE) Loan Programs Office (LPO) announced a conditional commitment to SK Siltron CSS, LLC for an approximately US $544 Million loan to expand manufacturing of high-quality silicon carbide (SiC) wafers for electric vehicle (EV) power electronics in the U.S. 

Global Silicon Wafer Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market report, along with the silicon wafer market forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on wafer size, type, application, and end use.

Breakup by Wafer Size:

• 0 - 100 mm
• 100 - 200 mm
• 200 - 300 mm
• More than 300 mm
   

More than 300 mm represented the largest segment

The report has provided a detailed breakup and analysis of the market based on the wafer size. This includes 0 - 100 mm, 100 - 200 mm, 200 - 300 mm, and more than 300 mm. According to the report, more than 300 mm represented the largest market segmentation.

According to the silicon wafer market statistics, the growing need for chip production capacity and improved economies of scale is propelling the segment's growth. Larger wafers allow semiconductor manufacturers to produce more chips per wafer, leading to higher productivity and lower manufacturing costs per chip. Besides this, more than 300 mm wafer size offers several advantages, including higher throughput, reduced fabrication costs, improved yields compared to smaller wafer sizes, etc. As a result, it has become the standard in semiconductor manufacturing for many advanced technologies, including those used in the automotive industry. In April 2024, Renesas Electronics Corporation started its 300-mm wafer fab for power semiconductors operations at its Kofu Factory, located in Kai City, Japan.

Breakup by Type:

• N-type
• P-type
   

P-type accounted for the largest silicon wafer market share

A detailed breakup and analysis of the market based on the type has also been provided in the report. This includes n-type and p-type. According to the report, p-type represented the largest market segmentation.

P-type silicon wafers serve as the substrate for manufacturing integrated circuits (ICs). Additionally, these ICs are fundamental components in electronic devices, such as smartphones, computers, automotive electronics, etc. P-type wafers also provide the foundation for creating the necessary circuitry on the semiconductor material. The adoption of technologies, including electric vehicles (EVs), autonomous driving systems, and advanced driver assistance systems (ADAS), that rely on semiconductor components is bolstering the segment's growth. For instance, in March 2024, Imperial Solar Star, one of the solar manufacturers based in Cambodia, launched a p-type silicon wafer manufacturing plant.

Breakup by Application:

• Solar Cells
• Integrated Circuits
• Photoelectric Cells
• Others
   

Solar cells account for the largest market share

A detailed breakup and analysis of the market based on the application has also been provided in the report. This includes solar cells, integrated circuits, photoelectric cells, and others. According to the report, solar cells represented the largest market segmentation.

Silicon wafers provide the base material for solar cell fabrication. These wafers are typically made from high-purity silicon ingots that are sliced into thin and circular discs using diamond wire saws or other cutting methods. The increasing installation of solar power panels to generate electricity is driving the demand for silicon wafers in solar cells. Besides this, as per the silicon wafer market research report, the rising environmental awareness among the masses is contributing to the growth of the market. For instance, in March 2024, Longi Green Energy Technology launched a new wafer that can be used to make a wide range of n-type high-efficiency solar cells.

Breakup by End Use:

• Consumer Electronics
• Automotive
• Industrial
• Telecommunications
• Others
   

Consumer electronics accounted for the largest market share

A detailed breakup and analysis of the market based on the end use has also been provided in the report. This includes consumer electronics, automotive, industrial, telecommunications, and others. According to the report, consumer electronics represented the largest market segmentation.

The increasing utilization of various mobile devices, such as smartphones, tablets, laptops, etc., to access the internet and connect with other people is elevating the silicon wafer market revenue in this segmentation. Additionally, the rising emergence of IoT devices is also supporting the growth of the segment. Besides this, the elevating demand for advanced electronic gadgets that cater to a wide range of applications is further encouraging semiconductor manufacturers to invent technologically advanced nodes. In March 2024, the government of India approved the construction of the nation's first semiconductor wafer fabrication plant built by PSMC, together with Indian giant Tata's electronics business.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific currently dominates the global market

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.  

According to the silicon wafer market outlook, the Asia-Pacific region has been witnessing rapid industrialization and urbanization. This has led to an increased demand for electronic devices, semiconductors, and photovoltaic products. Moreover, the rising number of semiconductor manufacturing facilities and suppliers is also acting as another significant growth-inducing factor. For example, in February 2024, the Union Cabinet chaired by the Prime Minister of India approved the establishment of three semiconductor units under ‘Development of Semiconductors and Display Manufacturing Ecosystems in India. With the widespread adoption of advanced technologies, such as 5G, the Internet of Things (IoT), artificial intelligence (AI), and automotive electronics, there is a growing requirement for silicon wafers to produce integrated circuits, memory chips, sensors, and other semiconductor devices. For instance, in April 2024, Gstar launched the construction of a new silicon wafer facility in Jakarta, Indonesia, to drive technological innovation in the development of large-sized, thin-film, and fine-line silicon wafers.

Competitive Landscape:

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include: 

• GlobalWafers Singapore Pte. Ltd.
• Okmetic Oy
• Shanghai Simgui Technology Co. Ltd.
• Shin-Etsu Chemical Co., Ltd.
• Silicon Materials, Inc.
• Siltronic AG
• SK Siltron Co., Ltd.
• Sumco Corporation
• Tokuyama Corporation
• Virginia Semiconductor, Inc.
• Wafer Works Corporation
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Silicon Wafer Market Recent Developments:

• June 2024: Canon developed chipmaking equipment that stamps designs onto silicon wafers.
• April 2024: LONGi launched its novel Tairay silicon wafers for solar technologies, including back contact cells (BC), heterojunction (HJT), and TOPCon.
• March 2024: Imperial Solar Star, a solar manufacturer based in Cambodia, introduced a silicon wafer manufacturing plant catering to p-type.

Silicon Wafer Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the silicon wafer market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global silicon wafer market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the silicon wafer industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.