Market Insight-Global Epi Wafer Market Overview 2022
The Global Epi Wafer Market Size Is Projected to Reach US$ 8.40 Billion by 2028, from US$ 5.33 Billion in 2021, at a CAGR of 6.65% during 2022-2028.– Bossonresearch.com
Figure Global Epi Wafer Market Size
Source: Bossonresearch.com, 2022
Driving Factors
Technological Superiority
The global Epi wafer market is driven by the use of epitaxial deposition to improve the performance of devices. The deposition of the epitaxial layer on electronic devices such as transistors and ICs make them free of imperfections, thereby reducing device failure and enhancing reliability at the time of fabrication. The epitaxial layer increases the breakdown voltage and enhances the switching speed in transistors. Another advantage is the advancements in EPI wafer deliver highly efficient and reliable electrical interconnect solutions for electronic products.
Great Potential in IT Telecommunication Industries
The EPI Wafer market holds a great potential in IT telecommunication industries. The telecommunication sector is penetrating its services and coverage in remote areas of the world and becoming a robust part of human lives. The telecom sector includes telephone, telecommunication, and internet service providers. The global telecommunication market has been continuously transforming with the adoption and integration of emerging communication technologies such as 5G, IoT, NB-IoT, and many more. According to the survey conducted by ITU, by the end of the year 2019, the number of internet users has augmented up to 4.1 billion. The poll represents the rapid progress of the telecommunication market. The usage of EPI wafer can boost the development of telecommunication and the expansion of the telecommunication market will drive the demand for EPI wafer.
Emerging Applications
One of the key factors driving the growth of the global EPI wafer market is increasing usage in emerging applications such as DRAM, flexible OLED displays, and AMOLED displays. In addition to that, increased security and safety worries in airports, workplaces, hospitals, and hotels amongst all other places, are expected to drive up the demand for IR detectors. Increased demand for these detectors is likely to favor the growth of global Epi Wafer Market in the years to come. Thus, increased adoption of advance wafer technology in different electronics is expected to propel the demand for silicon EPI wafer in the future.
Increasing Demand for Consumer Electronics
The consumer electronics market is one of the fastest-growing industries attributed to the emergence of new technologies. According to Global Markets Insights, consumer electronics market size was valued at over USD 1 trillion in 2020 and is estimated to grow at a CAGR of more than 8%from 2021 to 2027. Rapidly increasing internet penetration across the globe will drive the market growth and rapid advancements in technology to cater to consumer demands will also create market opportunities. Plus, as the impact of the Covid-19 weakens, people's incomes are gradually recovering, and consumer demand is gradually recovering. As an indispensable part of people's lives, people's demand for electronic consumption is also rising. At the same time, Epi wafers are widely used to improve the accuracy and performance of consumer electronic products like smart TVs, tablets, smartwatches, and smartphones. As a result, the increase in demand for epitaxial wafer in consumer electronics will further boost the growth of the EPI wafer market globally.
Growing Opportunities in the Automotive Industry
An increase in production rate in the automotive industry in which the contribution from the autonomous vehicles, electric vehicles, and self-driving trucks is expected to play a vital role in the growth of EPI Wafer market. The market is witnessing tremendous growth ascribed to the increase in automobile production and the number of motors used in a particular vehicle. According to Grand View Research, the global automotive motor market size was valued at USD 31.33 billion in 2018 and is expected to expand at a CAGR of 6.7% over the forecast period(2015-2025). At the same time, the automobile industries depend heavily on semiconductor technology and Wafers have become an intrinsic part of the production process, as they help increase the efficiency and precision through automation. Thus, production of vehicles is anticipated to create a lot of opportunities for the vendors in the silicon epitaxial wafers market.
Increasing Startup Culture
In this emerging field, new companies can bring dynamism to the market and bring more technological breakthroughs. In addition to GaAs and GaN, entrepreneurs are developing high-performance optoelectronic devices employing indium arsenide (InAs) and indium phosphide (InP) materials. Microelectronics startup companies are expanding their operations in III-V semiconductors and associated process technologies in order to develop next-generation products. The benefits of III-V semiconductors for telecom network operators have been widely promoted. Micro-imaging devices are being used to investigate possible microelectronics defects.
The Growing Need for Efficient Use of Energy
Increasing efficiency and reducing energy and resource consumption are a key drivers of today's EPI Wafer market development. Epi Wafer recombines porous silicon template by peeling off the epitaxial silicon layer grown on the substrate, and only 5% of silicon is wasted in the process, while the traditional multicrystalline wafer manufacturing process wastes about 45% of silicon material. In other words, the Epi Wafer process offers the possibility to reduce silicon and energy consumption, reducing production costs while maintaining high efficiency. As technology continues to mature, it will be able to save more energy and resources in the future, in line with today's call for efficient use of energy and resources.
Key Development Trends
More are Used in Production Process
Wafers have become an intrinsic part of the production process, as they help increase the efficiency and precision through automation. Wafers are used to keep a track of various parameters such as temperature, pressure, flow, level, and other parameters to control the whole process and ease it through robots. With the development and application of automatic production, the use of EPI Wafer in this field will also increase.
In the process of Capacity expansion
The production of EPI wafers is a complex process, and its production requires high requirements for technology, equipment, capital and related personnel. So mass production is difficult. Also, the high cost is also hampering the production. At present, many semiconductor companies are investing in building factories to expand production capacity. More investment in research and development to improve product qualification rate to ensure output while controlling costs. The largest manufacturer in wafer production is Samsung in South Korea. Its average monthly output exceeds 4 million pieces. In second place is the TSMC, a Taiwan-based wafer manufacturer has an average monthly output of 2.8 million wafers. According to SEMI, from the beginning of 2020 to the end of 2024, global semiconductor manufacturers are expected to increase 8-inch fab capacity by 1.2 million, or 21%, to a record high of 6.9 million wafers per month. The report also notes that global equipment spending on 8-inch fabs climbed to $5.3 billion in 2021. 8-inch fab equipment spending is expected to reach $4.9 billion in 2022 as 8-inch fab utilization remains high and the global semiconductor industry struggles to overcome chip shortages. China is currently actively expanding 8-inch and 12-inch wafer production capacity, it is expected in 2023, the production capacity of 8-inch will increase by 900,000 pieces/month to 2.98 million pieces/month.
Increase in popularity of loT in wafers
In the current IT-dominant world, people are moving toward automation-based solution and services. This has led to increased focus on loT-based devices due to their innovative and advanced applications. loT is a technology for providing internet or internetworking for almost all applications such as smartphones, microwaves, refrigerators, and buildings. loT uses electronic software, wafers for connecting all these things to a common network. loT incorporates several wafers such as epitaxial wafer. The semiconductor industry has witnessed considerable growth over the past few years due to factors such as emergence of loT, cloud computing, data analytics, and Al. This increase in trends in semiconductor devices and materials creates huge demand for wafers and chips.
Technology Boosts the Development
Technological advancements are penetrating at a rapid rate into the Epi wafer market. Research and development activities are being conducted to develop efficient and lightweight Epi wafers that can be more useful and convenient to the end-user. Furthermore, the upcoming 5G technology may invite exponential demand for Epi wafers across the telecommunication industry, thus inviting good growth opportunities.
Market Demand May be Less than Expected
The development of new technologies and commercialization in this industry is influenced by the overall economic environment. Due to the spread of the global epidemic, the pressure on domestic economic growth is still large, accounting for a large proportion of the market in computing, storage and communications. What is more, the downward pressure on the world economy is unabated, coupled with the turmoil in the world and the intensification of trade frictions, which have also slowed down the global economic development. As a result, market demand growth may be impacted, and companies' revenue and performance growth may be less than expected.
Global Epi Wafer Market: Competitive Landscape
In 2021, according to our calculations, the two indicators used to measure market concentration, CR5 and HHI, will be 57.36% and 7.02% respectively. This shows that the Epi wafer market is currently not concentrated. The key players in the market include Shin-Etsu (S.E.H), SUMCO, Coherent Corp, Siltronic AG, SK siltron Co.,Ltd, Global Wafers, IQE, Showa Denko, Zhejiang Jinruihong (QL Electronics), Visual Photonics Epitaxy, Wafer Works Corporation, Silicon Industry Group, Nanjing Guosheng Electronics, Hebei Puxing Electronics, Nichia, Super Silicon Semiconductor (AST), IntelliEPI, Xiamen Powerway Advanced Material, etc.
Key players in the Epi Wafer Market include:
Shin-Etsu (S.E.H)
SUMCO
Coherent Corp
Siltronic AG
SK siltron Co.,Ltd
Global Wafers
IQE
Showa Denko
Zhejiang Jinruihong (QL Electronics)
Visual Photonics Epitaxy
Wafer Works Corporation
Silicon Industry Group
Nanjing Guosheng Electronics
Hebei Puxing Electronics
Nichia
Super Silicon Semiconductor (AST)
IntelliEPI
Xiamen Powerway Advanced Material
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