March 1, 2024
Epitaxial Wafer Market

Growing Demand For Epitaxial Wafer In Semiconductor Industry Driven By Increased Integration Levels

The epitaxial wafer is a highly pure semiconductor wafer consisting of one or more epitaxial layers grown precisely on a semiconductor substrate. Epitaxial wafers find extensive usage in power devices, optoelectronics, microelectronics and photovoltaics owing to their advantages such as uniform thickness and dopant distribution, low defect density, and ability to grow both hetero-and homoepitaxial layers. The growing adoption of semiconductor chips in smartphones, computers, automotive electronics, and IoT devices has been a major driver for the epitaxial wafer market. These chips require complex epitaxial grown structures with increased integration levels for achieving better performance which has bolstered demand.

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 4.1%  over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends

One of the major trends witnessed in the epitaxial wafer market is the shift towards larger wafer sizes. Epitaxial wafers across 200mm, 300mm, and 450mm diameters are being increasingly adopted to facilitate high-volume manufacturing of advanced chips. Larger wafers allow fabricating more dies per wafer, thereby improving economies of scale for semiconductor manufacturers. Technology giants like Intel, TSMC, and Samsung are at the forefront of 450mm wafer adoption which is slated to accelerate market growth over the coming years. Additionally, ongoing R&D for achieving heteroepitaxy on dissimilar substrates is expected to revolutionize the industry by enabling innovative applications and reducing manufacturing costs.

Porter’s Analysis

Threat of new entrants: The epitaxial wafer market has significant set up costs, R&D capital requirements and intellectual property protections which make the threat of new entrants moderate.

Bargaining power of buyers: Significant customers for epitaxial wafers include semiconductor foundries, Wafer Fabrication facilities and IDMs. The bargaining power of these buyers is moderate as they source from a small number of global suppliers.

Bargaining power of suppliers: Major suppliers for raw materials like silicon wafers, MOCVD/MBE reactors and dopants have established operations. Their bargaining power is moderate owing to alternatives available.

Threat of new substitutes: Alternatives to epitaxial wafers include bulk substrates. However epitaxial wafers enable creating customized layers and exhibit better electrical characteristics. The risk from substitutes is low.

Competitive rivalry: The market is consolidated with few global players. Intense competition exists in terms of pricing, technology development, and customer service.

Key Takeaways

The global Epitaxial Wafer Market Size is expected to witness high growth over the forecast period of 2023 to 2030. 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 4.1%  over the forecast period 2023 to 2030.

Asia Pacific currently dominates the global epitaxial wafer market. Continued investments by wafer foundries and IDM’s in countries like China, Taiwan, South Korea and Japan position the region for strong future growth. Their developing expertise in compound semiconductor technologies further supports regional market growth over the forecast period.

Key players operating in the Epitaxial Wafer market are EpiWorks Inc., Global Wafers Japan Co. Ltd., Nichia Corporation, SHOWA DENKO K.K., Siltronic AG, Desert Silicon Inc., Electronics and Materials Corporation Ltd. Intelligent Epitaxy Technology Inc.IQE plc., Jenoptic AG, MOSPEC Semiconductor Corporation, Nortel AB, Ommic S.A., Silicon Valley Microelectronics Inc., SVT Associates Inc. Universal Wafer Inc., Wafer Works Corporation, Xiamen Powerway Advanced Materials Co. Ltd., and Visual Photonics Epitaxy Co. Ltd. These companies are focusing on technology innovation, expanding manufacturing capacities and strategic acquisitions to strengthen positions in the market.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it