Epitaxial Wafer Is Estimated To Witness High Growth Owing To...

Epitaxial Wafer Is Estimated To Witness High Growth Owing To Increasing Demand For Advanced Semiconductors

Posted 2023-12-26 06:57:56

An epitaxial wafer is a semiconductor wafer grown through an epitaxial process to form a crystalline overlayer on a wafer substrate. The epitaxial layer is grown in a highly controlled process to achieve the desired material characteristics such as crystal structure, stress/strain, carrier concentration and crystallographic orientation. These characteristics make epitaxial wafers the preferred choice for advanced semiconductor devices. They are used in applications such as power electronics, LED lighting, photovoltaics, RF front-end modules, and advanced logic and memory for next generation systems.

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 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Increasing demand for advanced semiconductors (One driver from heading) : Epitaxial wafers find wide application in the fabrication of advanced semiconductor devices used across different industries like consumer electronics, automotive, telecommunications, and healthcare. With growing applications of semiconductor chips in various end-use industries, the demand for epitaxial wafers is steadily increasing. Advanced chip architectures and new technologies such as 5G networks, AI/ML, and IoT are majorly driving the demand. Continuous innovation and advancement in semiconductor technology is fueling the growth of the epitaxial wafer market.

SWOT Analysis

Strength: Epitaxial wafer has a high crystal quality and purity level which is essential for fabrication of integrated circuits and semiconductors. The epitaxial wafer provides better performance and reliability to electronic devices. The high demand for 5G enabled devices and electric vehicles is driving the need for high performance semiconductors made using epitaxial wafers.

Weakness: Setting up epitaxial wafer manufacturing plants requires large capital investments and advanced manufacturing capabilities. Any disruption in manufacturing operations can impact the profits of epitaxial wafer suppliers. The market is also dominated by few global players which wield pricing power.

Opportunity: The advent of new technologies such as Internet of Things (IoT), augmented reality/virtual reality is opening new growth avenues for epitaxial wafer market. There is an opportunity to gain more market share in Asia Pacific region driven by growing electronics manufacturing in China and other Asia countries.

Threats: Trade restrictions between United States and China can adversely impact the global supply chain of epitaxial wafer market. Natural calamities and abrupt change in raw material prices are potential threats to steady growth of this market.

Key Takeaways

The Global Epitaxial Wafer Market Size is expected to witness high growth. Regional analysis related content comprises Regional analysis related content- The Asia Pacific region is currently the fastest growing and dominating region in the global epitaxial wafer market. This is attributed to large presence of electronics manufacturing companies, availability of raw materials and low cost of production in China, Taiwan and South Korea.

Key players operating in the epitaxial wafer market are Northrop Grumman Corporation, BAE Systems, Lockheed Martin Corporation, Clearpath Robotics Inc., John Bean Technologies Corporation, ECA Group, Israel Aerospace Industries Ltd., Endeavor (Now a part of FLIR system), Harris Corporation, and General Dynamics.

The global epitaxial wafer market size is expected to reach US$ 938.32 Billion by 2023. Advancements in 5G networking technology and proliferation of smart devices will be the key growth drivers.