Wet Chemicals for Electronics and Semiconductor Applications Market is growing driven by increased deployment of 5G networks

Wet Chemicals for Electronics and Semiconductor Applications Market

Market Overview: The global Wet Chemicals for Electronics and Semiconductor Applications market has grown significantly over the past few years. Wet chemicals are mostly used in wafer preparation, doping, cleaning, surface passivation and etching processes in the semiconductor industry. They help in conducting various processes such as photolithography, etching, cleaning, rinsing and drying which are required in chip making. The growing demand for advanced semiconductors, increased usage of consumer electronics and expanding 5G infrastructure are some of the major factors driving the demand for wet chemicals.

The global Wet Chemicals market for Electronics and Semiconductor Applications is estimated to be valued at US$ 2 Bn in 2024 and is expected to exhibit a CAGR of 9.9% over the forecast period 2024 to 2031.

Key Takeaways:

Key players operating in the Wet Chemicals for Electronics and Semiconductor Applications Market are Novartis AG, Merck & Co. Inc., F-Hoffmann La Roche, Eli Lilly and Company, Bayer AG, AstraZeneca, Astellas Pharma Inc., Amgen Inc., OSE Immunotherapeutics SA, and Bristol- Myers Squibb Company, among others. The rising demand for novel drug development and biologics has been profitable for these players.

The increasing use of consumer electronics devices such as smartphones, laptops, smart watches globally has been a major driver of the market growth. Miniaturization of circuits and integration of advanced technologies require consistent purification and enhancement of semiconductor wafers, thereby fueling the demand for wet chemicals.

The deployment of 5G network infrastructure in various developed and developing nations has opened new opportunities for market players. 5G enables high-speed internet connectivity for applications like autonomous driving, IoT, augmented reality etc. which require more advanced semiconductor chips to be manufactured using wet chemicals. This has led to expanded operations of key players in high growth regions.

Market key trends:

One of the key trends witnessed in the Wet Chemicals for Electronics and Semiconductor Applications market is increased R&D investments by players for developing eco-friendly and sustainable chemical solutions. Most nations have imposed stringent environmental regulations regarding the usage and disposal of hazardous chemicals used in semiconductor manufacturing. This has driven players to focus on green chemistry to manufacture low toxicity and biodegradable substitutes. New bio-based cleaning agents and acid replacements are emerging which is expected to further propel the green chemical market in coming years.

Porter's Analysis

Threat of new entrants: The threat is moderate as the capital requirement is high for setting up manufacturing facilities and R&D.

Bargaining power of buyers: The bargaining power of buyers is moderate as there are few alternative suppliers and switching costs are negligible.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials are specialized and suppliers have established relationship with manufacturers.

Threat of new substitutes: The threat is low as wet chemicals have distinct properties and applications compared to alternatives.

Competitive rivalry: The rivalry is high as the market is fragmented with presence of multiple global and regional players competing on factors like pricing, product quality and innovation.

Geographical regions where market in terms of value is concentrated: North America region holds the largest share of wet chemicals market for electronics and semiconductor applications owing to presence of leading semiconductor manufacturers and large electronics industry in the US and Canada. Asia Pacific is another major regional market led by China, Japan, South Korea and other developing nations having huge electronics manufacturing base and growing semiconductor sector.

Fastest growing region for the market: Asia Pacific region is poised to witness fastest growth in the wet chemicals market for electronics and semiconductor applications during the forecast period. This is attributed to rising electronics demand, expanding semiconductor manufacturing industry and increasing government support for electronics sector in countries like China, India, Taiwan and South Korea. Continuous technology advancement and digitization trends would further propel the market growth in Asia Pacific.