Semiconductor Silicon Wafer Market Size

Semiconductor Silicon Wafer Market Analysis

The Semiconductor Silicon Wafer Market size is estimated at USD 13.93 billion in 2024, and is expected to reach USD 16.81 billion by 2029, growing at a CAGR of 3.82% during the forecast period (2024-2029).

• Semiconductor silicon wafer remains the core component of many microelectronic devices and forms the cornerstone of the electronics industry. With digitization and electronic mobility being the current trends in the technology landscape, these products are finding applications in many devices. Also, the demand for small-sized gadgets has increased the need for more functionalities from a single device. This means that an IC chip should now house more transistors to support more features.
• According to the Semiconductor Equipment and Materials International (SEMI), silicon wafer market sales could witness a dip amidst the looming uncertainty surrounding the impact of COVID-19. However, the demand climbed on the strength of rebounding chip sales. SEMI also estimates that silicon wafer shipments globally will reach a record high in 2022. The initial outbreak of COVID-19 in China disrupted the country's supply chain and production. Major semiconductor manufacturing industries have been significantly affected due to China becoming a world production center over the past two to three decades.
• The semiconductor industry has been a significant driver behind critical innovations in significant sectors like electronics, automobiles, and automation, with semiconductor technology emerging as the building block of all modern technologies. The advancements and innovations in this field are immediately impacting all downstream technologies.
• Foundries are increasingly investing in new advanced packaging techniques, especially silicon wafer-based. Foundry vendors are researching improving transistor density with techniques like utilizing two-dimensional materials instead of silicon as the channel to develop Monolithic 3D Integrated Circuits. For instance, TSMC's chip on wafer on Substrate technology developed the world's largest silicon interposer that featuring room for two massive processors combined with 8 HBM memory devices in a package.
• Advancements in wearable devices will create massive growth opportunities for market vendors. According to Siemens, industrial wearables could be a massive market as these devices enhance quality and safety in the processing industry. According to Zebra Technologies Corporation, 40-50% of manufacturers globally are expected to adopt wearables by 2022. Also, the demand for small-sized gadgets has raised the need for more functionalities from a single device. This indicates that an IC chip should now house more transistors to support more functionalities.
• Favorable government policies across emerging economies like China created enormous opportunities for the semiconductor industry, which is expected to expand the semiconductor silicon wafer market during the forecast period. For instance, the policy framework published by the State Council of the People's Republic of China aims to make advanced semiconductor packaging solutions a technology priority across the semiconductor industry.