Semiconductor Chemicals Market Report

Rising demand for IoT is the key driver to the growth of the semiconductor chemical market as both of these technologies require sophisticated semiconductor parts. More connectivity and smarter devices demand improved performance by semiconductors. This increased performance requirement also increases the demand for specialty chemicals in their production process. Growing demand for the Internet of Things applications is increasing in industries, therefore, also creating an ongoing demand for novel materials and processes for the production of semiconductors.

Furthermore, semiconductors are also needed in smartphones because they enable efficient processing and controlling of electronic signals. Thus, the rising demand for smartphones is also considered the major driving factor for the semiconductor chemical market. The demand for smartphones is rising due to its multifunctionality and technological advancements. In addition, as per the data of the National Library of Medicine, globally 6.4 billion individuals own a smartphone and is expected to touch the 6.8 by the end of 2028 which is expected to overall boost the market for semiconductor chemicals.

The management of the waste from semiconductor chemicals is quite challenging and, hence, may limit the market growth. The handling of hazardous and toxic materials also requires stringent regulatory compliance to add operational costs to the manufacturers. There is also the challenge of insufficient infrastructural capacity for waste disposal. This raises environmental concerns that could expose the manufacturers to potential legal liabilities and reputational loss. These factors limit entry for new entrants and reduce the scalability for existing firms, thus delaying innovation and expansion in markets. As sustainability is emphasized as a goal, firms also have to invest in expensive waste management technologies, hence further stretching resources.

The next and major problem in the Semiconductor Chemical Market is the rising number of deaths of workers working in semiconductor chemical factories. Semiconductor chemical manufacturing is a highly hazardous activity to the health of personnel in operation, especially for lymphohematopoietic cancers, like leukemia and lymphoma. Some of the dangerous chemicals that are used during the application in semiconductor manufacturing include heavy metals and solvents, among other harmful agents. Exposure to such chemicals over long periods leads to genetic mutations and interferes with the proper working of the immune system, the latter of which are highly influential factors in the origin of lymphohematopoietic cancers also, as per BMC Public Health a total of 288 deaths were reported. Workers in this industry therefore risk more of these cancers than their counterparts in the general population, hence serious health and safety regulations must be enforced to keep them healthy.

In November 2023, JCU Corporation launched TIPHARES, a new brand of surface treatment chemicals for semiconductors, and followed a proactive strategy towards mass production with the full-scale manufacture of next-generation semiconductors. As a first step, the company launched TIPHARES RDP, a copper plating chemical for rewiring layers, and TIPHARES TCE, a titanium (Ti)/copper (Cu) sputter seed layer batch etching chemical, which were surface treatment chemicals for the back-end processes of high-density wiring connections between semiconductor chips. These chemicals were used to form wiring for circuit patterns with a uniform height of 2μm (μ = one millionth; 2μm = 2/1000 mm) or less, which were necessary for the back-end process of next-generation semiconductor manufacturing. In addition to the back-end process, the company planned to launch surface treatment chemicals for through-silicon vias (TSVs) and mega-pillars (vertical connection electrodes) required for next-generation semiconductors from April 2024 and would also continue joint research with Tohoku University to develop chemicals for hybrid bonding.

In June 2023, Seattle-based NLM Photonics announced that it has raised US$1 million in new funding to advance the commercialization of its hybrid electro-optic modulation technology, which was supposed to open the way for semiconductors that could handle more data with less power. Two Japanese companies led the funding round in question namely, Tokyo Ohka Kogyo Co. This company is popularly abbreviated as TOK. Hamamatsu Photonics K.K. was another of its leading Japanese peers. An industry world leader in advanced electronics material manufacture, TOK company offered vital materials and goods for the operation of the world's most successful and expansive semiconductor trade. Hamamatsu was a major player in the market for photonics components — and was involved in a previous investment round for NLM. The TOK investment deal also included collaboration on developing shelf-stable inks incorporating NLM’s proprietary materials.

The rising production of semiconductors in the Asia Pacific market makes it one of the most important and lucrative markets for semiconductor chemical markets. The most important country for and a global leader in the production of semiconductors, Taiwan is the most lucrative market for semiconductor chemicals. As per the data of the U.S. International Trade Commission, Taiwan holds 18% of the global semiconductor market, and 92% of the world’s advanced chips are manufactured in Taiwan. Similar to Taiwan, Japan can also be considered a lucrative market due to its rising production of semiconductors. As per the data of the World Economic Forum, the Japanese government is planning to invest an amount of US$ 13 billion to boost its domestic semiconductor production. South Korea can also be considered a profitable market due to its global production of semiconductors. As per to invest Korea holds 17.7% of global semiconductor market share in 2022.

North America can be considered an emerging market, given the growth of the semiconductor industry is supported by that of the smartphone industry. North America's semiconductor market is also increasing with rising needs for AI, IoT, and 5G-based advanced technologies. New opportunities are also being opened up by electric vehicles and renewable energy solutions. Furthermore, the Semiconductor Industry Association United States semiconductor manufacturing capacity is expected to triple. It is also forecasted that the US will hold a total of 28% of global capacity by 2032 for less than 10nm chips. Thus, the rising production of semiconductors is expected to boost the market for semiconductor chemicals in North America specifically in the United States.