Semiconductor Market Update

Overall, the growth in the semiconductor market remains strong despite some occasional downturns and geographic shifts. Revenues were somewhat lower in 2013 than in 2012: for total wafer fabrication materials, revenue was $22.76 billion compared to $23.44 billion, and for packaging materials, $21.36 compared to $20.70 billion. Also, for the second year in a row substantial declines in silicon revenue, advanced substrates, and bonding wire contributed to the year-over-year decrease to the total semiconductor materials market. 

Currently, 300mm capacity expansion dominates, but there is still plenty of life remaining for 200mm wafers.  The reason for this is most MEMS fabs rely on 200mm technology. Therefore, a steady need for 200mm wafers is forecast through 2015, followed by a predicted slow decline through 2018 as ever-larger wafers are introduced.

 While the global semiconductor materials market may have decreased 3% in 2013 compared to 2012 (with revenues of $43.5), worldwide semiconductor revenues increased 5%. 

International Semiconductor Market

Taiwan was the largest consumer of semiconductor materials for the fourth consecutive year, largely due to its large foundry and advanced packaging base. Despite that, it did not experience any annual growth. In North America, the semiconductor market also remained flat. In China and Europe, markets did increase in 2013, mainly as a result of the strength in wafer fab materials. However, the market in Japan contracted 12%, as did markets in South Korea and Rest-of-World. (The ROW region is defined as Singapore, Malaysia, Philippines, other areas of Southeast Asia and smaller global markets.)

As January 2014 approached, America-based manufacturers of semiconductor equipment posted $1.28 billion in orders worldwide (three-month average basis), according to a recent Report published by SEMI.  Thus, even with fluctuations in demand and revenues, it can be seen that semiconductor materials are critical to meeting the growing needs of the marketplace.  

Semiconductor Support from Materion

Even in the downturn, Materion remains strong in the semiconductor market. We offer microelectronics packaging products and services not only for the semiconductor market, but for MEMS, wireless and LED markets. We have it all – from lids, frames, solder and braze alloys to precious metal targets and metals management. Our capabilities allow us to easily handle the rapid technology changes that require innovative materials critical to semiconductors.  With global facilities in Buffalo, NY, Brewster, NY, Milwaukee, WI, St. Clara, CA, Limerick, Ireland, and Singapore – we are positioned provide international service to our semiconductor customers. For more information, please contact Chris Johnson, Senior Marketing Manager, Christopher.Johnson@Materion.com