SEMI: Global Semiconductor Materials Market Declines by 7% in 2023

The report indicates that the global semiconductor materials market has shown a downward trend in all products throughout 2023. Among them, the rural sales amount in wafer manufacturing materials decreased by 7% to 41.5 billion US dollars. The most significant decrease in this area is in silicon, photoresist auxiliary materials, wet chemicals, CMP materials, etc. As for the materials used for chip packaging, the decline was even greater, reaching 10.1%, with the amount reaching 25.2 billion US dollars, mainly due to the decline in the organic substrate industry.

The report indicates that the reduction in sales in the semiconductor material market is actually attributed to the weak demand in the semiconductor market in 2023, coupled with manufacturers actively adjusting inventory, resulting in underutilization of manufacturing facilities and directly affecting the consumption of semiconductor materials. Simply put, the decrease in capacity utilization of these facilities is the main factor contributing to the reduction in semiconductor material usage.

In addition, by region, Taiwan, China has become the largest consumer market of semiconductor materials for the 14th consecutive year, with an amount of 19.2 billion US dollars. This is because TSMC in Taiwan, China, China, produces the most advanced chips for technology companies all over the world, including technology giants Apple, AMD, Intel and Huida. After Taiwan, Chinese Mainland maintained its position as the second largest consumer market of semiconductor materials because of the growth of demand, reaching a sales volume of 13.1 billion US dollars.

South Korea ranks third with sales of $10.6 billion, as most of its 3D NAND and DRAM memory, including Samsung and SK Hynix, are produced domestically. Semiconductor material sales in other regions have shown significant declines. The most noteworthy is that the North American chip material market shrank by 11.4% in 2023, reaching $5.561 billion. As for Europe, the semiconductor market size in 2023 was $4.319 billion, a decrease of 5.7% compared to 2022.