Semiconductor materials

Global Chip Market

Main Article: Semiconductors (Global Market)

Chip Manufacturing Equipment Market

Main Article: Chip Manufacturing Equipment (Global Market)

2024

Revolution in the world of chips: Ultra-efficient 3D transistors are presented that surpass silicon technology

In early November 2024, American researchers at the Massachusetts Institute of Technology (MIT) reported the development of highly efficient 3D transistors based on ultra-thin semiconductor materials. Products of a new type are superior in performance to silicon elements. Read more here.

Solnechnogorsk launched the production of quartz glass for microelectronics for 340 million rubles

In Solnechnogorsk, launched the production of quartz glass for microelectronics worth ₽340 million. The new Quartz Crystal Technologies enterprise is located on the territory of the Esipovo industrial park and will become one of the leading centers for the production of quartz glass products for the needs of microelectronics, optics and instrumentation in Russia. This became known in September 2024. Read more here

Construction of Russia's first Semiconductor Materials Science Center began in Veliky Novgorod

In June 2024, the construction of the first Center for Semiconductor Materials Science in Russia, which will become an object with a closed microassembly cycle, began in Veliky Novgorod. Read more here.

Quantum computer breakthrough: World's cleanest silicon discovered

In May 2024, scientists from the Universities of Manchester and Melbourne announced the development of an improved form of silicon, which marks a breakthrough in the field of quantum computers.

Modern quantum systems are inherently noisy and produce a significant number of performance-reducing errors. This is due to the fragile nature of qubits and the interference that occurs during operation (for example, due to temperature drop).

𝓲

Nature.com

Qubits are usually made from superconducting metals such as tantalum and niobium because they have almost unlimited conductivity and resistance. Researchers from the University of Melbourne and the University of Manchester decided to use ultra-pure silicon for qubits, obtained using an ion implant - a device that is widely used in the semiconductor industry. The method consists in the fact that the computer chip is "fired with a beam" of silicon-28, during which the impurities of silicon-29 change to the more desirable silicon-28, and as a result, the concentration of silicon-29 in the chip decreases from 4.5% to 0.0002%.

This technology paves the way for the creation of 1 million qubits, which can be the size of a pin head. As conceived by the developers, their discovery will be a step towards creating powerful quantum computers that can revolutionize many areas, including artificial intelligence, medicine, materials and logistics.

The ability to produce high quality silicon qubits has so far been partially limited by the purity of the silicon starting material used. The purity that we demonstrate here solves this problem, "said one of the authors of the research work Ravi Acharya.[1]

Russian scientists proposed to eliminate semiconductor defects using hypersonic

A team of researchers from MIPT and FIAN has developed an approach that in the future will allow, without direct contact with a semiconductor, to cure some types of defects in it. Scientists demonstrated the ability to "expel" a defect from a semiconductor structure using laser hypersonic, and the movement of the defect was detected by subtle changes in the structure of the spatial glow of the crystal. The study will help in the development of a simple and affordable technology for optimizing the quality of semiconductor heterostructures. The work is published in the Journal of Applied Physics. This was announced on January 18, 2024 by representatives of the Moscow Institute of Physics and Technology. Read more here.

2023

Global Semiconductor Material Sales Reach $66.93 Billion

At the end of 2023, the volume of the global semiconductor materials market is estimated at $66.93 billion. The drivers of the industry are the increasing demand for advanced electronics, the development of 5G mobile networks and the Internet of Things (IoT), as well as the widespread introduction of artificial intelligence. This is stated in the Fortune Business Insights review, published on October 9, 2024.

It is noted that the COVID-19 pandemic had a negative impact on the market, disrupting the supply chains and provoking a shortage of semiconductor materials. Many enterprises were forced to suspend production; there were problems with logistics. On the other hand, the surge in demand for equipment for organizing remote work, online training and digital transformation helped offset the negative consequences, which led to a rapid recovery of the sector. The shift to advanced packaging technologies such as System-in-Package (SiP) and 3D IC is driving demand for semiconductor materials. Another driver is the growing popularity of consumer electronics, including smartphones, tablets and wearable gadgets.

Faster market expansion is constrained by the need for significant investment. The production of modern semiconductor materials, such as high-purity silicon wafers, specialized photomabels and modern packaging materials, requires advanced technologies and strict quality control, which leads to increased costs.

From the point of view of the end user, the market is divided into consumer electronics, automotive, telecommunications, industry, healthcare, aerospace and defense, etc. The consumer electronics segment dominates with a share of 36.5% in total costs in 2023. At the same time, the automotive sector is experiencing the highest growth rates against the background of integration of advanced electronic systems into vehicles, including autonomous driving, on-board infotainment systems and security functions. From a geographical point of view, the Asia-Pacific region leads, where costs in 2023 amounted to $32.13 billion. This is due to the strong base of production of semiconductor products, as well as the growing demand for electronics in rapidly developing economies. North America holds the second largest share due to the active development of semiconductor technologies. At the same time, leading companies and research institutes are based in the United States and Canada. The weakest pace of development of the semiconductor materials industry is recorded in South America.

The study notes that major market players include Shin-Etsu Chemical Co., Sumco Corporation, Samsung, Applied Materials, Amkor Technology, JCET Group, Dow, Kyocera, Tokyo Electron Limited, Rogers and Basf. Large companies focus efforts on service improvement, strategic collaboration, acquisitions and partnerships to strengthen the position. By product type, the market is subdivided into wafer materials and packaging materials. The main revenue in 2023 was provided by the first of these segments.

At the end of 2024, revenue in the market under consideration is estimated at $69.39 billion. Fortune Business Insights analysts believe that in the future, the CAGR (CAGR in compound percentage) will be 4.2%. As a result, by 2032, costs on a global scale will reach approximately $96.24 billion.^[2]

Market drop of 8.2% to $66.7 billion

In 2023, the global market for materials for the production of semiconductor products amounted to approximately $66.7 billion. This is 8.2% less than the result for the previous year, when the figure was estimated at a record $72.7 billion. Such data are given in the study of the industry association SEMI, the results of which were released on May 3, 2024.

The report says that revenue from materials for the manufacture of plates in 2023 was recorded at $41.5 billion, which is 7% less on an annualized basis. The most significant decline was demonstrated by the supply of silicon, photoresists, chemicals and materials for chemical-mechanical planarization. In the segment of packaging materials, sales decreased by 10.1% - to $25.2 billion at the end of 2023. Supplies of organic substrates for microcircuits were hardest hit.

𝓲

SEMI

SEMI experts say that one of the main reasons for the market contraction was the sale of excess stocks of products. Against this background, the utilization of production capacity decreased, which, in turn, led to a decrease in demand for materials for the production of chips.

In 2023, Taiwan became the largest consumer of materials for semiconductor products for the 14th year in a row with a result of $19.18 billion - this is 4.7% less compared to the previous year ($20.13 billion). In second place is China, where costs increased year-on-year by 0.9% - from $12.97 billion to $13.09 billion. South Korea closes the top three, reducing purchases of materials for the production of chips by 18% - from $12.9 billion to $10.58 billion. The study also notes that the volume of the market under consideration in North America decreased by 11.4%, amounting to approximately $5.56 billion. In Europe, the reduction was at 5.7%, and the result was $4.32 billion^[3]

Growth in silicon supplies to Russia by 14 times to 330.4 tons

The supply of pure silicon to Russia in 2023 reached 330.4 tons, which is 14 times more than a year earlier. In money, the import of this material, used in the production of electronics and photovoltaic cells, reached 774.5 million rubles. Such data of customs statistics were published on January 19, 2024.

According to Kommersant, in 2021, imports of high-purity silicon to Russia amounted to 709 tons for 612.7 million rubles. Thus, in physical terms, deliveries in 2023 turned out to be half as much as in 2021.

Pure silicon supplies to Russia in 2023 reached 330.4 tons

It follows from the publication of the newspaper that in 2023 324 tons of Asian-made silicon were imported into the Russian Federation against 7 tons in 2022. The market refocused on Asian suppliers after the EU and Britain imposed restrictions on silicon supplies to Russia. In 2021, the main suppliers of high-purity silicon in the Russian Federation were German and American manufacturers - mainly for solar power. In 2023, "indirect supplies of American and German silicon to Russia, but in very small volumes," an informed source told the publication.

According to the interlocutors, the Kommersant transition of Russian semiconductor manufacturers from European and American to Asian silicon took place "with practically no difficulties." The top manager of the profile company also says that "it was possible to restructure supplies quickly enough."

The transition to products from Asian manufacturers is unlikely to create a significant problem, but different Asian suppliers "may differ in the share of scrap in the supplied batches," said Igor Chausov, director of the analytical direction of ANO Center Energinet.

One of the largest silicon consumers in Russia is investors in the construction of solar power plants (SES), they are obliged to produce part of the equipment for SES in Russia in order to receive increased energy payments for the payback of investments.^[4]

The Ministry of Industry and Trade took up the production of material for chips for 770 million rubles

The Ministry of Industry and Trade began work on organizing the production of a compound in Russia - the material necessary for the production of microelectronics. To do this, the department at the end of October 2023 launched three relevant tenders for research work (NIR). They are talking about the amount of 770 million rubles. The project is being implemented within the framework of the program "Development of electronic engineering for the period up to 2030." Read more here.

Russia has created a new approach to creating microelectronics materials - with a laser and simultaneous coating with nanoparticles of precious metals

Russia In created a new approach to the creation of microelectronics materials - laser and simultaneous coating with nanoparticles of precious metals. This was announced on August 4, 2023 in, St. Petersburg State University (St. Petersburg State University) scientists from which take part in the implementation of this project.

They, together with colleagues from Germany and Spain, showed the possibility of simultaneous exposure to the surface with femtosecond laser radiation and coating with nanoparticles of noble metals. This approach can be used to create highly efficient devices used in optics and power engineering, in particular sensors, energy storage devices, light-emitting and optoelectronic devices. The work carried out by chemists for the first time demonstrates such a one-step approach to creating a nanostructured surface with evenly distributed nanoparticles of noble metals - gold, silver, palladium, platinum, TASS reports with reference to the press service of St. Petersburg State University.

A new approach to the creation of microelectronics materials has been created - with a laser and simultaneous coating with nanoparticles of precious metals

For this, scientists used salts and complexes of noble metals, together with the well-studied LIPSS effect (laser induced periodic surface structure) - this is the process of forming periodic submicron structures with sizes less than one micrometer (they are called submicron structures) on the surface under certain laser modes of exposure to various materials.

According to the developers, research and synthesis of nanomaterials is a promising branch of modern science. Scientists around the world are studying nanostructures and proposing new solutions to improve the efficiency of industrial production and microelectronics. Silicon-based substrates are used as universal materials in the manufacture of various resonant nanostructures on the surface, which can be the main one for the creation of commercially available optical sensors, energy storage devices, light-emitting and optoelectronic devices. For example, "ultracarbon" surfaces such as amorphous silicon with noble metal nanoparticles deposited help capture broadband radiation (such as sunlight) and can be used in solar power engineering.^[5]

2022

Global Silicon Chip Wafer Market Rises to New Record

Shipments of silicon wafers in the global market reached 14.713 billion square inches in 2022, a new record. This was announced on February 7, 2023 by the semiconductor manufacturers association SEMI Silicon Manufacturers Group (SMG).

According to estimates, in 2019, shipments of silicon wafers on a global scale amounted to 11.81 billion square inches, in 2020 - 12.407 billion, and in 2021 - 14.165 billion. Thus, in 2022, the pace of development of the industry slowed down somewhat, which is explained by the general decline in the IT market and the difficult macroeconomic situation. Year-on-year supply growth was 3.9%. These statistics do not include plates used to create solar panels.

Global silicon wafer market gains record

If we consider the industry in monetary terms, then sales of silicon wafers in 2022 also turned out to be a record - $13.8 billion. Growth compared to 2021, when revenue was $12.6 billion, amounted to 9.5%. For comparison: in 2019 and 2020. the volume of the industry was estimated at $11.2 billion.

The silicon wafer industry has continued to evolve despite growing global macroeconomic concerns, said Anna-Riikka Vuorikari-Antikainen, chairman of SEMI SMG and commercial director of Okmetic.

The study said 2022 saw an increase in demand for 8- and 12-inch silicon wafers to make chips designed for the automotive and industrial sectors, the Internet of Things, and 5G communication systems. Silicon wafers are the main "building material" for most semiconductor components that are used in a wide variety of devices, including personal computers, mobile gadgets, servers, consumer electronics, industrial equipment, communications, etc.^[6]

Raw materials for the production of chips have risen in price 9 times

The price of neon, necessary for the production of semiconductors, rose sharply against the background of the Russian military special operation in Ukraine. One of the beneficiaries of a likely crisis that could exacerbate an already acute chip shortage could be China, which, along with Russia and Ukraine, is one of the largest producers of this gas. This became known on March 18, 2022.

According to information the Hong Kong the South China Morning Post (SCMP), the average wholesale price industrial of neon China in jumped to 16 thousand yuan ($2.5 thousand) per cubic meter from 1.85 thousand yuan ($290) as of February 24, 2022, when the Russian special operation in Ukraine started. Thus, over the past three weeks, neon has risen in price almost nine times.

Earlier it became known that it Ukraine stopped exporting neon due to the shutdown of production at the factories of the two largest suppliers of this noble gas - Cryonin and Ingaz. Prior to its shutdown, it is estimated that they Reuters collectively provided 45-54% of all neon supplies suitable for use in the semiconductor industry.

The situation in Ukraine led to a sharp breakdown in the balance between demand and supply, which caused a powerful jump in prices, said Liu Yin, sales manager at Shanghai-based special gas supplier Song Ci Technology.

He also noted that this is not the limit - the rise in prices may continue, since the volume of gas production by Ukrainian enterprises in the near future is unlikely to return to the previous level.

The current situation may play into the hands of China, noted in SCMP, since the PRC itself is one of the leaders of this industry on a global scale. The country has every chance of increasing its share of the world neon market from the current 30% to 50%. According to Zhen Chen (Chen Zhina), CEO of Changzhou Naxin Special Gases, some foreign gas consumers have already switched to the Chinese market in order to stabilize supplies.

According to Chen, before the crisis, Ukraine produced about 40% of the world's neon, Russia - 30%. In 2021, world chipmakers combined consumed about 540 tons of this gas.

Semiconductor manufacturers in China have sought to diversify the pool of suppliers of special gases since 2015. On the eve of the reunification of Crimea with Russia in 2014, prices for neon on the world market soared by 600%. Chinese businesses have probably learned a valuable lesson from the previous crisis. For the period from 2015 to 2022, the Chinese managed to bring the processes of production of special gases to a "mature" state. Not least, this was facilitated by the powerful steel industry - in China, as in Russia, neon is produced in the form of a by-product obtained in the process of smelting steel^[7].

Ukraine stopped the production of neon. Why this is a big problem for the global chip market

At the end of February 2022, a plant that supplies neon for the production of semiconductors around the world stopped working in Odessa. Ukraine is the largest exporter of this gas, so the problems that began in this country after the start of the Russian special operation can seriously hit the entire chip market.

Some raw materials exported from Russia and Ukraine, such as rare neon gas, chemical C4F6 and metals palladium, nickel, platinum, rhodium and titanium, are critical to semiconductor production, Counterpoint Research analysts said. After the start of the special operation Russia on To Ukraine many chemical and mining enterprises, they suspended their work, and the Russian production sector was under sanctions.

Chipmakers brace for more problems as neon supply disruptions

With about half of the world's neon gas and the metals needed to make semiconductors coming from these two countries, it will have a strong impact on the chip market, TechCet, an electronic materials advisory firm that advises some of the world's biggest chipmakers, including Intel and Samsung, said.

The neon gas mixture is commonly used as a light source in ArF and KrF excimer lasers for lithography. The chemical is C4F6 used in the etching step. Since the semiconductor manufacturing process for 3D structures requires a significant number of etching steps, the lack of C4F6 will have a greater impact on 3D NAND production than on foundry logic production.

Neon prices rose more than 10-fold during the Crimean crisis in Ukraine in 2014, even as the semiconductor industry cut its overall gas use by 20-40% after adjusting software logic and streamlining its gas-fuelled cleaning process. Therefore, the supply chain will suffer if gas production facilities are destroyed during a special operation launched on February 24, 2022. Otherwise, price increases are possible, although the impact on production will remain manageable.

However, gas and chemicals produced in Russia and Ukraine are not exclusive to the region. Production sites are limited because production is associated with high energy consumption and pollution. But if prices rise rapidly and demand remains strong, new players in other regions will undoubtedly enter the market.

It is expected that due to the special operation of Russia in Ukraine, the neon will become more expensive, longer, and some local problems with this gas are possible

Palladium is used in the production of components, for example, for the manufacture of substrates in printed circuit boards. However, precious metals such as palladium, platinum and rhodium are mainly used in catalytic converters for automobiles. Titanium nitride (TiN) is a widely used material for the production of semiconductors as a diffusion barrier. The second largest exporter of titanium in the world is Russia (in first place is the United States). Lithium battery production could also face some upheaval as nickel, of which Russia is a major producer, is an important metal for these batteries.

The supposed consequences of the Russian-Ukrainian conflict:

• The short-term risk of supply shortages arises not only as a result of conducting special operations and imposing sanctions, but also as a result of trade. Trade with other countries has become extremely difficult for Russia due to its exclusion from SWIFT and worsening inflation.
• In the medium term, the absence of the aforementioned raw materials will not have much impact on semiconductor manufacturers. The situation will be controlled by existing stocks and other suppliers. However, a significant increase in prices is inevitable.
• Large enterprises have more purchasing power. Small and medium-sized chipmakers and related businesses could face increased supply pressures due to depletion of stocks and difficulties in establishing links with new sources if the conflict continues.
• In the long term, small and medium-sized chipmakers can place numerous orders to offset this risk, which will lead to a deterioration in the supply of raw materials.
• The rapid rise in metal prices (nickel and palladium) will be a new obstacle to the revival of the automotive market if the conflict continues.
• With geopolitical tensions now spreading from Asia to Europe and from semiconductor production to raw material supplies, decisions on capacity expansion and investment will require reassessment.
• The supply chain, as well as semiconductor manufacturers, will be forced to switch to local production, which entails increased costs. Supply chain management will also become more complex.^[8]

2021: Market growth 15.9% to $64.3 billion

In 2021, sales of semiconductor materials on a global scale reached $64.3 billion against $55.5 billion a year earlier. Market size grew by 15.9% and was a record, according to a report by industry body Semiconductor Equipment and Materials International (SEMI; unites leading manufacturers of equipment and materials for the production of chips).

SEMI President and Chief Executive Officer Ajit Manocha noted that the global semiconductor materials market has shown "exceptional growth" in 2021 due to stable demand for chips and capacity expansion from companies engaged in contract production of semiconductor products. He also added that in 2021, in all regions, sales of semiconductor materials increased either by double-digit rates or close to 10% figures.

Global Semiconductor Materials Market Updates Record

Manufacturers sought to meet the record-breaking demand for electronics in history amid the accelerated pace of digital transformation, Manocha emphasized.

According to the study, in 2021, sales of materials for the manufacture of semiconductor wafers amounted to $40.4 billion, which is 15.5% more than a year ago. Sales of materials for packaging chips increased even more - by 16.5%, to $23.9 billion. The growth of this segment was largely due to the high costs of organic substrates, lead frames and connecting wires.

The researchers also noted a high demand for materials for chemical-mechanical planarization (removal of irregularities from the surface of the manufactured semiconductor wafer). This technology is applied after almost every lithographic stage of chip production.

According to SEMI, for the 12th year in a row, Taiwan remains the world's largest buyer of semiconductor materials with expenses of $14.71 billion at the end of 2021. The leadership of this island is ensured by the availability of extensive manufacturing facilities for the manufacture of microcircuits and a developed packaging base for these products, the researchers point out.

The largest increase in spending on semiconductor materials in 2021 was shown by China (+ 21.9%, to $11.93 billion), which took second place in absolute spending. South Korea remained in the top three, which accounted for the purchase of materials in the amount of $10.57 billion, which is 16% more compared to 2020.

In 2021, sales of semiconductor materials on a global scale reached $64.3 billion

Sales of semiconductor materials in North America at the end of 2021 reached $6.04 billion, an increase of 8.5% on an annualized basis. In Europe, a 22 percent rise and a market volume of $4.4 billion was registered. In other regions (analysts include Singapore, Malaysia, the Philippines, other countries of Southeast Asia and smaller sales markets), combined, the costs of materials used in the production of chips in 2021 turned out to be $7.8 billion, which is 15.2% higher than the result of 2020.

Semiconductor materials represent one of the most important innovations in the electronics industry, analysts said. This can be explained by the high electron mobility, wide temperature limits, and low power consumption. Using components such as silicon (Si), germanium (Ge) and gallium arsenide (GaAs), electronics manufacturers were able to replace traditional thermionic devices that made electronic devices heavy and non-portable. In this regard, semiconductor materials are widely used in the production of various electronic components, such as diodes, transistors and integrated circuits.^[9]

Notes