Thin Wafer Market Analysis by Type (125mm, 200mm, and 300mm); Application (MEMS, CMOS Image Sensors, Memory, RF Devices, LEDs, Interposers, Logic) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4882 | Published Date: May 01, 2023
Thin Wafer Market size is estimated to reach ~USD 25 Billion by the end of 2035 by growing at a CAGR of ~13% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of thin wafer was ~USD 12 Billion. The growth of the market can be attributed to growing data generated. Every day, about 327 million terabytes of data are produced. One of the things driving up demand for thin wafers is the increasing amount of data being generated. In order to create microprocessors, memory chips, and other data processing and storing electrical devices, thin wafers are a necessary component. Thinner wafers allow manufacturers to create smaller, more energy-efficient devices that are better suited to handle enormous volumes of data.
Moreover, growing energy consumption is also estimated to boost the demand for thin wafer. The total amount of electricity used for end uses in the US increased by 2.6% in 2022 compared to 2021. Retail power sales to the residential and commercial sectors, respectively, increased by roughly 3.5% and 3.4%, respectively, in 2022 compared to 2021. Hence, the market for thin wafer is estimated to grow. Electronic devices made with thin wafers require less electricity to function than devices made with thicker wafers. This is for the reason that switching times may be sped up and power consumption may be reduced owing to the thinner dimensions of the transistors and other parts on the thin wafer.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~13% |
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Base Year Market Size (2022) |
~ USD 12 Billion |
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Forecast Year Market Size (2035) |
~ USD 25 Billion |
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Regional Scope |
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Growth Drivers
About 85 percent of the world's population would own a smartphone by 2023, when there would be approximately 5 billion users worldwide. The microprocessors that make up the "brains" of cellphones are made on thin wafers. The thin wafer's reduced component sizes make it possible to create high-performance processors that could fit in the constrained space found in smartphones.
In the entire world, there are about 7,999 data centers. Approximately 32% of the data centers among them are situated in the US. Hence, the demand for thin wafer is growing. Advanced cooling techniques for data centers, including the manufacture of heat sinks and thermal interface materials, are accomplished using thin wafers. The performance and dependability of the computer components in data centers must be maintained owing to the high heat generated by these facilities.
Between 2012 and 2019, the pace of LED adoption into the global lighting industry increased, and in 2025, it is anticipated to reach a penetration of almost about 75 percent. Light-emitting diodes (LEDs), which are employed in a variety of lighting applications, are also produced on thin wafers. Hence, the demand for thin wafer is growing.
The percentage of renewable energy in the world's electrical generation increased from about 26% in 2019 to approximately 28% in 2020. Hence, the demand for solar chips is growing. When making solar cells, which turn sunlight into power, thin wafers are employed. The wafer's thinness enables more effective solar energy absorption and higher energy output.
Health monitoring gadgets, especially those that are wearable and implanted, are made from thin wafers. Hence, with the growing demand for health monitoring devices the market is estimated to grow. Globally, the number of linked wearable devices has increased from 324 million in 2016 to approximately 721 million in 2019, more than doubling in only three years.
Challenges
The global thin wafer market is segmented and analyzed for demand and supply by application into MEMS, CMOS image sensors, memory, RF devices, LEDs, interposers, and logic. Out of which, the LEDs segment is anticipated to garner the highest revenue by the end of 2035. The growth of the segment can be attributed to growing production of LEDs. While many nations started phasing out incandescent bulbs more than 10 years ago, several are currently starting to do the same with fluorescent lighting so that LEDs eventually become the dominant lighting technology. LED technology is used in more than 49% of the worldwide lighting market. Hence, the demand for thin wafer growing in this segment. LEDs are often produced using thin wafers consisting of materials such silicon carbide (SiC) or gallium nitride (GaN). The semiconductor layers in the LED are made from these wafers, which are subsequently cut into tiny chips. The performance of the LED could be influenced by the wafer's thickness. LEDs made from thin wafers may be more effective and brighter. This is so that less energy is lost as heat and greater heat dissipation is made possible by thinner wafers. Furthermore, employing thinner wafers, such as those constructed of GaN or SiC, may enhance the performance of the power components used in LEDs, including the switching speed, thermal conductivity, and breakdown strength.
The global thin wafer market is also segmented and analyzed for demand and supply by type into 125mm, 200mm, and 300mm. Amongst which, the 300mm segment is expected to have the significant growth over the forecast period. The growth of the segment can be attributed to growing demand for consumer electronics since they are suitable for manufacturing large components. Moreover, the exponential use of 300 mm wafers in LED applications is fueling the growth of the thin wafer market globally owing to the better performance offered by these wafers. For LED makers, scaling savings have been very considerable, and these wafers have improved profitability. Additionally, a significant rise in demand for 300mm wafers is anticipated to lead to an increase in the number of active 300mm wafer manufacturing facilities. Achieving economies of scale and raising the profitability of these wafers is becoming increasingly important for top LED makers. Additionally, the expansion of the 300mm wafer manufacturing sector is being aided by the increasing number of operational facilities.
Our in-depth analysis of the global thin wafers market includes the following segments:
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By Type |
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By Application |
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The thin wafer market share in Asia Pacific, amongst the market in all the other regions, is projected to have the highest growth by the end of 2035, backed by growing demand for electronic devices such as smartphones and laptops, along with investment in R&D. The adoption rate of smartphones reached about 73% in 2021 and is projected to increase to approximately 83 percent by 2025 in Asia Pacific. In addition, it is anticipated that about 61 percent of mobile subscribers would be present in the same year. Moreover, with significant investments being made in solar energy infrastructure by nations including China, Japan, and India, the solar energy market is also expanding quickly in the Asia Pacific area. The manufacture of solar cells requires thin wafers, which are in high demand owing to the rising need for solar energy. Additionally, numerous nations in the Asia Pacific region, including China and India, have put favorable government policies into place to assist the expansion of the solar and electronics industries. The need for thin wafers is being fueled by these regulations, which offer incentives to firms to spend money on infrastructure and new technologies.
The North America thin wafer market is estimated to be the second largest, to have the highest growth over the forecast period. With an emphasis on creating more effective and environmentally friendly automobiles, the North American automotive sector is going through considerable changes. The manufacturing of sensors and other parts for automobile systems including anti-lock brake systems (ABS), airbags, and engine control systems uses thin wafers. The need for thin wafers in North America is being driven by the rising demand for cutting-edge automotive technology. Moreover, a combination of an ageing population and advancements in medical technology are fueling a rapid expansion of the North American market for medical equipment. Medical equipment such pacemakers, implanted defibrillators, and glucose meters are all made using thin wafers. The region's demand for thin wafers is being driven by the rising demand for these devices.
Additionally, the thin wafer market in Europe region is also estimated to have the significant growth over the forecast period. Many nations in the region have set high goals for the adoption of electric vehicles, and Europe has been at the forefront of the worldwide trend towards them. Electric car parts including electric motors and power electronics are made using thin wafers. In Europe, the demand for thin wafers is being driven by the rising demand for electric vehicle. Additionally, given the widespread deployment of 5G networks in the region, Europe is one of the biggest markets for 5G technology. Components of the 5G network, including as transceivers and filters, are produced using thin wafers. The demand for thin wafers in Europe is rising along with the demand for 5G networks.
Lintec Corporation
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Abhishek Verma, Hetal Singh
Ans: The major factors driving the growth of the market are growing adoption of smartphones, rise in data centers, surge in penetration of LEDs, and others.
Ans: The market size of thin wafer is anticipated to attain a CAGR of ~13% over the forecast period, i.e., 2023 – 2035.
Ans: lack of high initial investment, competition from alternative technologies, and environmental concerns are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Shin-Etsu Chemical Co., Ltd., Siltronic AG, SUMCO Corporation, My Chip Production GmbH , and more.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, application, and by region.
Ans: The 300mm segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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