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Global Semiconductor Materials Market Update for 2024

The global semiconductor materials market showed robust growth in 2024, achieving a revenue of $67.5 billion, marking a 3.8% increase from the previous year, according to the latest report by SEMI, an authoritative industry body representing the semiconductor and electronics supply chain. This growth underlines the recovery of the semiconductor industry, bolstered by heightened demand for advanced materials that cater to high-performance computing and high-bandwidth memory manufacturing.

Breakdown of Revenue

The report detailed that revenue from wafer fabrication materials rose by 3.3% to $42.9 billion, while packaging materials experienced a more significant increase of 4.7%, reaching $24.6 billion in 2024. Notably, segments like chemical mechanical planarization (CMP) materials and photoresists enjoyed impressive double-digit growth rates, attributed to the increasing complexity and number of processing steps involved in producing advanced DRAM, cutting-edge 3D NAND flash, and state-of-the-art logic integrated circuits (ICs).

Across nearly all segments, except for silicon and silicon-on-insulator (SOI), the market recorded an uptick in revenue compared to the previous year. Unfortunately, silicon revenue took a hit, declining by 7.1% due to an ongoing industry correction as manufacturers dealt with excess inventory, especially in the trailing edge segment.

Regional Insights

In terms of geographical performance, Taiwan retained its title as the largest consumer of semiconductor materials for the 15th consecutive year, generating $20.1 billion in revenue. Close behind, China followed with $13.5 billion, continuing its year-over-year growth trajectory to secure its position as the second-largest consumer. South Korea maintained its status as the third-largest market, with revenues totaling $10.5 billion. However, all regions aside from Japan experienced single-digit revenue increases, indicating a generally positive trend across the major markets.

Future Outlook

The Materials Market Data Subscription (MMDS) by SEMI offers valuable insights into annual revenue figures along with a decade of historical data and projections for the following two years. It provides comprehensive quarterly updates for the semiconductor materials sector and tracks revenue across seven geographical markets: North America, Europe, Japan, Taiwan, South Korea, China, and the Rest of the World. Detailed historical data on silicon shipments and revenues are also incorporated, covering essential materials like photoresists, ancillaries, process gases, and lead frames.

For further details regarding the SEMI report and to explore subscription options, interested parties are encouraged to contact the SEMI Market Intelligence Team or visit the SEMI Market Data webpage directly.

About SEMI

SEMI® stands as a global industry association, representing over 3,000 member companies and 1.5 million professionals within the semiconductor and electronics design sectors worldwide. The organization focuses on fostering collaboration among its members to tackle pressing industry challenges through advocacy, workforce development, sustainability strategies, supply chain management solutions, and more. Through initiatives like SEMICON® expositions, sector-specific technology communities, and contributions to standards and market intelligence, SEMI remains dedicated to advancing innovation and growth in the electronics industry. For additional information, visit www.semi.org and engage with SEMI on platforms like LinkedIn and X.