TECHCET—the advisory firm providing materials market & supply chain information for the semiconductor industry — is anticipating an 8% rebound in the semiconductor wet chemicals market in 2024, which will hit US $5.5 billion. The future ramp in wet chemicals will be largely driven by growth in chemical consumption from leading-edge device technology, especially as expansion in 3DNAND layers ramp to 5XXL layer count, as highlighted in TECHCET’s Critical Materials Report on Wet Chemicals.
The dynamics of the US chemical supply are progressively changing as expansion activities ensue. TECHCET is forecasting a jump in the US domestic share of the semiconductor material market up to 13%-15% by 2027, as support grows for incoming fab expansions. While this outlook is looking generally positive for the US semiconductor industry, uncertainties with timing expansions have made it difficult for suppliers to plan effectively, and CHIPS Act funding does not seem to be helping as much as initially anticipated. Fabs and equipment manufacturers remain the priority of CHIPS Act funding, while material suppliers see the Notice of Funding Opportunity (NOFO) as offering little support.
US expansions appear to be slowing down based on TSMC’s delay announcement to 2025, alongside delays by Intel and Samsung. Noting this, many suppliers remain “expansion-ready,” and are just awaiting continued progress and demand signals from chip manufacturers. To hear more on this topic, Kevin McLaughlin, Sr. Director at TECHCET, will speak on “The Intersection of Semiconductors and Governments: Increased Funding, Support…and Regulations” at the Surface Preparation and Cleaning Conference (SPCC) on April 25, 2024.
Investments are evident from Japan, Taiwan and Korea in new chemical facilities and expansions both regionally, external in Asia Pacific, and in the US. In Europe, major players like Intel and TSMC are also building new fabrication plants, increasing demand for wet chemicals.