WET CHEMICALS FOR ELECTRONICS AND SEMICONDUCTOR APPLICATIONS MARKET ANALYSIS

The Global Wet Chemicals for Electronics and Semiconductor Applications Market size was valued at USD 3.4 billion in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of  3.5% from 2022 to 2030. The electronic wet chemicals market is highly penetrated in the semiconductor industry. It finds extensive cleaning applications during the manufacturing process. There are several factors that are expected to contribute to the growth of the market. These include technological advancements, rising per capita expenditure on consumer electronics, and increasing demand from various end-use industries. However, stringent regulatory policies and high costs of operating and disposing the products are the key challenges for the market growth. During the last few years, the electronic wet chemical market has undergone a tremendous change. The market has witnessed increased demand from various end-use industries. This is mainly due to the increased per capita expenditure on consumer electronics. The demand for semiconductors in the electronics industry has also contributed to the market growth.

Global Wet Chemicals for Electronics and Semiconductor Applications Market: Regional Insights

Regionally, Asia Pacific (APAC) market is expected to hold leading position in the Global Wet Chemicals for Electronics and Semiconductor Applications Market. Countries in this region have witnessed a strong growth in the manufacturing sector in recent years. This growth is expected to continue during the forecast period due to the increasing investments in the electronics manufacturing industry. In addition to this, rising disposable income is further expected to boost the demand for electronic wet chemicals in APAC region.

The European region is expected to be the second largest market for the electronic wet chemical market.  This is mainly due to the increased per capita expenditure on consumer electronics. Moreover, Germany is the largest semiconductor chip producer in Europe. Furthermore, the country invests about 24% of the total R&D expenditure on the electronics and micro technology industry.

Figure 1. Global Wet Chemicals for Electronics and Semiconductor Applications Market, By Region

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Global Wet Chemicals for Electronics and Semiconductor Applications Market Drivers:

Growing demand from modern technology industries is driving growth of the Global Wet Chemicals for Electronics and Semiconductor Applications Market. These chemicals are widely used in fabrication of electronic products, such as used semiconductors, and various electronics applications, like printed circuit boards (PCB) manufacturing, integrated circuit (IC) manufacturing, LCDs, LEDs, monitors, display panels, television, and other electronics. Wet electronics chemicals are mainly used in semiconductors for etching and cleaning processes.

Increasing demand for hydrogen peroxide from semiconductor industry is again propelling market growth. Hydrogen peroxide is majorly used in the manufacturing and processing of semiconductor display business, wafers, and more. High purity grades of hydrogen peroxide are widely used. Moreover, with the increasing complexity of computer chips and the miniaturization of circuits, the demand for ultra-pure electronic grade hydrogen peroxide is projected to grow in the coming years, thus expanding the Wet Chemicals for Electronics and Semiconductor Applications Market.

Global Wet Chemicals for Electronics and Semiconductor Applications Market Opportunities:

Growing focus on recycling of semiconductor is expected to present lucrative growth opportunities over the forecast period. For instance, over 70% of the electronics end as trash, and new electronics products have to be prepared to fill the gap created by the scraped electronics, which is likely to generate the demand for new PCB. Since these PCBs are populated with precious metals, such as silver, gold, platinum, and palladium, recycling is very popular among the PCB producers.

Favorable market growth for semiconductor in Malaysia is again projected to serve major growth opportunities for key players in the near future. According to the CEO of IGSS ventures, Malaysia has a huge potential to be a major part of the semiconductor industry in the future, than it does today, regardless of the slow global sales.

Global Wet Chemicals for Electronics and Semiconductor Applications Market Trends:

Increasing penetration of smartphone due to growing trend of digitalization is fostering market growth. According to the U.S. Consumer Technology Sales and Forecast study conducted by the Consumer Technology Association (CTA), smartphone revenues, in 2017 and 2018, were USD 69 billion and USD 78 billion, respectively. CTA expects sales in the country to reach 2.1 million units and cross USD 1 billion in revenue in 2019, with triple-digit increases through 2021.          

Growing government initiatives to accelerate electronic sector is another emerging trend in the global market. For instance, in March 2019, the government of France has launched Nano 22 program to support and grow the French electronics sector. The strategic committee for the electronics industry sector has focused on multiple factors, which together can form and boost the French electronics industry.

Global Wet Chemicals for Electronics and Semiconductor Applications Market Restraints:

Growing concern over waste management for semiconductor is expected to restrict the market growth. For example, hydrofluoric acid is majorly used in the cleaning of wafers and etching processes, which directly get flushed into the drain line. According to a report published by the Semiconductor Industry Association, waste solutions of hydrofluoric acid account for more than 40% of the hazardous substances produced in the semiconductor industry.

Decline in the semiconductor market is again expected to hinder the market growth. The global semiconductor industry, which was expanding till 2018 (13.7% growth in 2018, compared to 2017, according to the World Semiconductor Trade Statistics (WSTS)), started to weaken by the end of 2018. In the fourth quarter of 2018, the industry declined by 8.2% from the third quarter.

Figure 2. Global Wet Chemicals for Electronics and Semiconductor Applications Market, By Product Type

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Global Wet Chemicals for Electronics and Semiconductor Applications Market Segmentation:

The Global Wet Chemicals for Electronics and Semiconductor Applications Market report is segmented into Product Type, Application, and Geography

Based on Product Type, the market is segmented into Acetic Acid, Isopropyl Alcohol (IPA), Hydrogen Peroxide, Hydrochloric Acid, Ammonium Hydroxide, Hydrofluoric Acid, Nitric Acid, Phosphoric Acid, Sulfuric Acid, and Other Product Types. Out of which, Acetic Acid is expected to dominate the global market over the forecast period and this is attributed to the growing use of acetic acid for etching of semiconductor chips and other electronics applications.

Hydrogen Peroxide segment is also expected to witness significant growth in the near future and this is owing to the increasing use of ultra-high purity grades in the manufacturing and processing of semiconductor display, wafers, etc.

Based on Application, the market is segmented into Semiconductor and Other Electronic Applications. Semiconductor is further segmented into Cleaning and Etching. Other Electronic Applications segment is sub segmented Integrated Circuit (IC) Manufacturing and Printed Circuit Boards (PCB) Manufacturing into Out of which, Cleaning is expected to dominate the global market over the forecast period. The cleaning process is anticipated to reach USD 555.12 million by 2024, with a CAGR of 7.89% during the forecast period. This process includes removal of contaminants from the wafer surfaces and control the grown oxide level on the wafer.

Etching segment is also expected to witness significant growth in the near future. Etching process accounted for 60.7% in the overall semiconductor application in the global wet chemicals market, in 2018. There is a high use of etching process in research and manufacturing of silicon devices, systems and circuits.

Global Wet Chemicals for Electronics and Semiconductor Applications Market: Key Developments

In May 2018, BASF SE inaugurates electronic-grade sulfuric acid plant in China to produce highest quality sulfuric acid used in semiconductor manufacturing processes.

In February 2019, FUJIFILM has announced expansion of its manufacturing and development facility of electronic materials in Mesa, Arizona. The company has announced its commitment in maintaining its leadership in supplying broad range of high purity electronic chemicals.

Global Wet Chemicals for Electronics and Semiconductor Applications Market: Key Companies Insights

The Global Wet Chemicals for Electronics and Semiconductor Applications Market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the Global Wet Chemicals for Electronics and Semiconductor Applications Market are Avantor Inc., BASF SE, Eastman Chemical Company, FUJIFILM Corporation, Honeywell International LLC, KANTO CHEMICAL CO. INC., KMG Chemicals (Cabot Microelectronics), kredence Pvt Ltd, Solvay, T.N.C. INDUSTRIAL CO. LTD, Technic Inc., Linde, and Zhejiang Kaisn Fluorochemical Co. Ltd

*Definition: Electronic wet chemicals are mainly used in the semiconductor industry. These chemicals are used in etching and cleaning of semiconductors. Some of the common ingredients used in these processes are IPA (isopropyl alcohol), H2SO4 (rubbing alcohol), and etchant. In addition, these chemicals can also be used to create new materials.