TECHCET—the electronic materials advisory firm providing business and technology information— announced that the Total Semiconductor Materials market in 2022 is expected to top US$66 billion after strong semiconductor demand through the first three quarters of the year. The growth represents almost 8% revenue growth versus 2021, with material segments such as CMP Pads, Specialty Gases, Precursor Materials, and SOI Wafers growing at double-digits year-over-year.
The 2023 outlook has become increasingly uncertain in recent months given global economic challenges, alongside concerns with high energy costs and inflation that will impact consumer spending. TECHCET is anticipating a decline in 2023 semiconductor revenues, with the decline currently forecasted to be steeper for Memory devices.
TECHCET is forecasting a relatively flat 2023 for materials revenues, although volumes may have slightly negative growth. “We see a decline of at least 1.5% in wafer starts for 2023,” states Lita Shon-Roy, MS/MBA, TECHCET President. “Any decline in memory wafer starts will dampen the market for some precursors, specialty gases, cleaning chemistries, and other advanced materials for capacitors and multi-layer structures.”
Advanced logic devices, below 10 nm, will be the leading volume drivers of materials for 2023, forecasted to grow > 5%. “The wildcard will be the economy,” Lita added. “Should we fall into a recession, wafer starts will likely decline further. However, given CHIPS Act funding expected to be infused into the market in 2H2023, growth should return by third quarter of next year.”