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Global Silicon Wafer Market Recovery

According to SEMI's recent report, the global silicon wafer market is experiencing a recovery phase as demand rebounds in the second half of 2024. This comes on the heels of a significant downturn experienced in 2023, where shipments and revenues dropped considerably. The data provided by SEMI, which constitutes the Silicon Manufacturers Group (SMG), reveals that in 2024, worldwide silicon wafer shipments totaled 12,266 million square inches, representing a 2.7% decrease compared to the previous year. Wafer revenue, meanwhile, contracted by 6.5%, landing at $11.5 billion.

As the silicon industry grapples with a broad inventory correction, factors such as weak end-demand from high-volume segments hindered fabricator utilization rates and wafer shipments. Despite this, experts suggest that a recovery is on the horizon, likely to strengthen towards the latter half of 2025. According to Lee Chungwei, Chairman of SEMI SMG, while generative AI and the construction of new data centers have fueled demand for advanced memory and foundry devices like High Bandwidth Memory (HBM), many markets are still feeling the effects of excess inventory.

Key Trends Impacting the Market

• - Generative AI: The rapid development of generative AI technology has increased the need for advanced semiconductor solutions, acting as a catalyst for manufacturers to innovate further.
• - New Data-Center Construction: The building of new data centers has reenergized demand for specific semiconductor components, paving a path for a broad-based recovery in the silicon wafer sphere.

Despite these encouraging signals, the report emphasizes the ongoing challenges within the industrial semiconductor market. Many customers have mentioned in their earnings statements that they continue to face strong inventory corrections impacting silicon wafer shipments.

Historical Context

An overview of the annual shipment and revenue statistics reveals the oscillating nature of the silicon industry:

• - 2020: Shipments topped at 12,407 MSI, generating $11.2 billion in revenue.
• - 2021: A peak year with shipments rising to 14,165 MSI and revenues jumping to $12.6 billion.
• - 2022: Continued growth with an all-time revenue high at $13.8 billion, despite a shipment decrease.
• - 2023: The downturn saw shipments fall to 12,602 MSI, along with revenues dropping to $12.3 billion.
• - 2024: Stabilization begins with 12,266 MSI in shipments and $11.5 billion in revenue.

Silicon wafers play an integral role in modern technology as they serve as the foundational building materials for most semiconductors, crucial for electronic devices. Manufactured in diameters of up to 300 mm, these thin disks are essential substrates for fabricating semiconductor devices or chips.

As the SMG, a sub-committee of the SEMI Electronic Materials Group, focuses on collective industry challenges, it aims to enhance market data and statistics in collaboration with members involved in manufacturing various types of silicon and wafers. The momentum is building as the industry looks to stabilize and grow in 2025, aided by advancements in technology and market adjustments.

For additional insights and statistics on silicon wafer shipments and forecasts, visit SEMI's official site.

About SEMI

SEMI is a globally recognized industry association connecting over 3,000 member companies and professionals in the semiconductor and electronics design and manufacturing supply chain. SEMI actively promotes collaboration to address significant industry challenges through various programs including advocacy, workforce development, and sustainability. Their events and communities aim to foster innovation and growth within the industry. For updates and connections, follow SEMI on LinkedIn and X.