by Epitaxial wafers, also known as epi wafers, are semiconductor wafers used in the fabrication of integrated circuits and optoelectronic devices. Epi wafers involve the controlled deposition of a crystalline layer on crystalline substrate. They are widely used in the production of microchips required in consumer electronic devices including smartphones, laptops, wearables, and other IoT devices. Growing demand for high-performance computing and connectivity along with emerging technologies like 5G infrastructure, artificial intelligence and virtual/augmented reality are majorly driving the demand for consumer electronic devices.
The global Epitaxial Wafer Market is estimated to be valued at US$ 938.32 Bn in 2023 and is expected to exhibit a CAGR of 4.1% over the forecast period between 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The increasing demand for consumer electronics is one of the major drivers of epitaxial wafer market. As mentioned earlier, growing sales of smartphones and other consumer electronic gadgets have increased the demand for high-performance microchips. In addition, the rising deployment of 5G networks worldwide is expected to push the market growth over the forecast period. 5G technology will enable ultra-low latency and increased connectivity, thereby boosting the development of new semiconductor applications in sectors like connected/autonomous vehicles, industrial IoT, augmented reality and more. This large-scale implementation of 5G is projected to influence the demand for epi wafers in upcoming years. However, high manufacturing costs associated with epitaxial wafer production may restrict market growth during the forecast period. Nonetheless, ongoing technological advancement to improve manufacturing efficiencies would support market expansion.
Segment Analysis
The global epitaxial wafer market is divided into two key segments based on product type- 150mm and 200mm. The 150mm segment currently dominates the market contributing around 60% share owing to the cost effectiveness of these wafers. These wafers are preferred for manufacturing discrete and analog devices. However, the 200mm segment is expected to witness faster growth during the forecast period owing to the increasing consumption of these wafers for advanced logic ICs, MEMS and power devices production.
PEST Analysis
Political: The epitaxial wafer market is highly regulated due to environmental concerns regarding wafer manufacturing. However, supportive government policies regarding semiconductor industry growth are positively impacting the market.
Economic: Growth in smartphone, automotive and IoT sectors is driving the need for advanced logic chips manufactured using epitaxial wafers. This is fueling the market growth.
Social: Increasing demand for consumer electronics and connected devices is propelling the consumption of electronic components made from epitaxial wafers.
Technological: Advancements in wafer diameter, defect density reduction and new epitaxy materials are enabling manufacturing of more powerful devices. This is increasing the adoption of epitaxial wafers.
Key Takeaways
The Global Epitaxial Wafer Market Demand is expected to witness high growth over the forecast period of 2023 to 2030 supported by increasing demand for analog and power chips across industries. The global epitaxial wafer market is estimated to be valued at US$ 938.32 Bn in 2023 and is expected to exhibit a CAGR of 4.1% over the forecast period between 2023 to 2030.
Regionally, Asia Pacific dominates the market currently accounting for over 55% share led by strong presence of semiconductor foundries and fabless chip manufacturers in countries such as China, Taiwan and South Korea. Countries are attracting investments for specialty logic chip fabs augmenting the regional market growth.
Key players operating in the epitaxial wafer market are EpiWorks Inc., Global Wafers Japan Co. Ltd., Nichia Corporation, SHOWA DENKO K.K. and Taiwan Semiconductor Manufacturing Company Limited. These companies are focusing on technology advancements and capacity expansions through capital investments to strengthen their position in the market.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
