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MILPITAS, CA — The global semiconductor materials market grew 4.9% in 2020 to $55.3 billion in revenue, surpassing the previous market high of $52.9 billion set in 2018, SEMI reported today.

Wafer fabrication materials and packaging materials revenues totaled $34.9 billion and $20.4 billion, respectively, in 2020 for year-over-year increases of 6.5% and 2.3%. The photoresist and photoresist ancillaries, wet chemicals, and CMP segments accounted for the strongest growth in wafer fabrication materials, while the packaging materials expansion was driven by organic substrates and bonding wire market growth.

For the 11th consecutive year, Taiwan, at $12.4 billion, was the world's largest market for semiconductor materials on the strength of its large foundry capacity and advanced packaging base. With its aggressive capacity build-up, China surpassed Korea to claim the second spot. Both China and Taiwan registered stronger growth, while the South Korea, Japan and ROW markets also expanded. The North America and Europe markets saw declines due to the COVID-19 pandemic.

Table 1. 2019 and 2020 Regional Semiconductor Materials Markets (US$ billions)

  

2019 (revised)

2020

YoY

Taiwan

 $11,449

 $12,383

8.2%

China

 $8,717

 $9,763

12.0%

South Korea

 $8,885

 $9,231

3.9%

Japan

 $7,708

 $7,947

3.1%

Rest of World*

 $6,415

 $6,759

5.4%

North America

 $5,623

 $5,590

-0.6%

Europe

 $3,919

 $3,634

-7.3%

Total

$52,716

$55,308

4.9%

Source: SEMI, March 2021

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