Semiconductor Materials Post Record Revenues for Fourth Straight Year

The global semiconductor materials market grew 14 percent in 2007 and is forecasted to grow over 11 percent in 2008 according to the latest materials forecast from SEMI. While the semiconductor industry grew three percent in 2007 to reach the $256 billion published by the Semiconductor Industry Association (SIA), the global semiconductor materials market grew 14 percent in 2007 to reach a record $42 billion.

Growth was seen in both the wafer fabrication materials and packaging sectors with increases of 17 percent or $25 billion and nine percent or $17 billion respectively. Japan continues to dominate worldwide semiconductor materials consumption at 22 percent share due to its large wafer fab and packaging base. Taiwan has held onto the number two spot in terms of consumption of semiconductor materials for the past four years driven by strong growth in wafer foundries and packaging subcontractors. The Rest of World region (ROW), which aggregates Singapore, Malaysia, Philippines, other areas of Southeast Asia and smaller global markets, claims the third largest materials market due to packaging materials. The semiconductor materials market in China is growing at the fastest rate given the new capacity coming on-line from a previously small base.

"As the semiconductor companies continue to ship record amounts of units, demand for materials is increasing as well," said Dan Tracy, senior director of Industry Research and Statistics at SEMI. "Heightened demand in addition to the tight supply for various gases, silicon, and the widespread adoption of advanced packaging technologies are resulting in very strong revenue growth for semiconductor materials suppliers."