Market Trends of Chemical Mechanical Planarization (CMP) Slurry Industry
Memory Segment to Hold Significant Market Share
- The memory chip demand continues to witness notable growth driven by expanding applications across server, mobile, data communication, automotive, and industrial segments. For instance, according to WSTS, revenue from memory component sales was estimated to reach USD 134.41 billion in 2022.
- As chemical mechanical planarization (CMP) is now a widely used manufacturing technique by semiconductor companies for creating memory discs, the increasing use of these components in sectors like IoT, 5G, automotive, and data center, among others, may also fuel demand for CMP slurries during the forecast period.
- The semiconductor industry is witnessing a rapid growth rate, with semiconductors becoming the building blocks of all modern technologies. Technological advancements and innovations in this field are directly impacting all downstream technologies. As a result, the semiconductor memory industry is also witnessing a direct impact from the growing demand for high-performance memory systems across multiple end-user verticals.
- The explosion in data generation has fueled the demand for improved memory and storage types at workplaces across the globe. As traditional memory systems have been struggling to keep up with the increased volume of data, the growing investments in data centers are also driving the demand for memory devices. For instance, according to Cloudscene, in 2022, the United States was the leading country with 2,701 data centers, followed by Germany (487), the United Kingdom (456), and China (443).
- A significant proportion of the total system power is spent on the memory systems, as most of the current systems-on-chips (SOC) area is occupied by memories. Moreover, the processing elements need to be fed with instructions and data from memories, where memory plays a crucial role in the system's performance. Therefore, memory is a crucial part of future embedded systems, and non-volatile memory holds great potential to resolve bandwidth, speed, and size problems. These are expected to become market regulars and occupy a significant market share by the end of the forecast period.
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Taiwan Holds Major Share in the Market
- Taiwan is investing in 5G, with its strategy for 5G rollout. Since the semiconductor manufacturing sector mainly drives the initiative, it is expected to keep up with the demands of its IC design customers for different types of digital signal processors for 5G and 5 G's high-frequency radio modem circuits. Thus, this is expected to bring advancements in the market.
- Taiwan-based TSMC, the world's largest contract chipmaker with more than 50% share in the global market, is also significantly creating demand for CMP slurries. The growing advancement in the telecom industry, due to 5G, and in the automotive industry are also fueling the company's product demand, developing the scope for the market vendors.
- In May 2023, Microsoft Taiwan established a 5G Foresight Team with local partners to build a complete 5G ecosystem and drive digital transformation by encouraging firms to capitalize on the opportunities provided by 5G and artificial intelligence in Taiwan.
- Taiwan holds a prominent position in terms of total IC foundry output. It is the global leader with advanced below 10 nm production process, also number one in IC packaging and testing output. Due to these factors, the country observes a significant demand from major IC manufacturers worldwide.
- The region is witnessing an increasing demand for consumer electronics. For instance, according to the Ministry of Economic Affairs of Taiwan, the sales value of portable computers in Taiwan increased from TWD 64.13 billion (~USD 2.05 billion) in 2021 to TWD 79.23 billion (~USD 2.53 billion) in 2022. Such instances augment the growth of the market studied.
- Supportive government regulations, easy availability of raw materials and labor have boosted the growth of the semiconductor manufacturing industry. The expanding semiconductor manufacturing is mainly driving the adoption of CMP slurry in the country.
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