by The epitaxial wafer market manufactures semiconductor epitaxial substrates for electronic and optoelectronic devices. Epitaxial wafers are used in the production of LEDs, lasers, radio frequency devices, and power electronics. Epitaxy refers to the process of depositing a crystalline layer or film over a crystalline substrate of the same material.
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.
The global epitaxial wafer market is driven by the rising adoption of advanced display technologies such as OLED displays and mini LED displays in various consumer electronics. OLED displays offer better contrast ratio, response time and wider viewing angles compared to LCDs. The increasing use of OLED displays in premium smartphones, televisions and other devices is expected to fuel the demand for epitaxial wafers. Further, mini LED displays are emerging as a competitive backlight technology for large-screen displays and laptops. As mini LED displays provide deeper black levels, higher contrast ratio and local dimming capabilities compared to LCDs, their adoption in various devices is projected to benefit the epitaxial wafer market over the forecast period.
Market Dynamics
The epitaxial wafer market opportunity mentioned in the heading, rising adoption of advanced display technologies, remains a key driver. Epitaxial wafers are used to manufacture LEDs and other optoelectronic devices that enable the latest display technologies such as OLEDs and mini LED displays. As consumer electronics manufacturers increasingly adopt these advanced displays to offer superior viewing experience, the demand for epitaxial substrates is expected to rise significantly. Another major factor propelling the market growth is the increasing demand for epitaxial wafers in the semiconductor industry. Epitaxial wafers act as the building blocks for manufacturing power electronics, radio frequency devices, and integrated circuits. With the proliferating applications of semiconductors across myriad industries, the requirement for high-performance and efficient epitaxial substrates is on the rise.
Segment Analysis
The Epitaxial Wafer Market Size is segmented into front-end and back-end type. The front-end type segment dominates the market and accounts for over 80% share owing to the extensive use of epi wafers in various electronic and communication devices. The front-end processing involves growing epitaxial layers on substrates that are later used to fabricate advanced integrated circuits and devices.
PEST Analysis
Political: The market is influenced by government regulations regarding usage of electronic devices and energy efficiency standards. Supportive policies for semiconductor manufacturing will boost the market growth.
Economic: Growth of global economy, increase in disposable incomes and demand for consumer electronics are driving the market. High investment in R&D for chip manufacturing acts as an opportunity.
Social: Rising digitalization and proliferation of IoT devices are major social factors augmenting the market. Increasing demand for advanced features in smartphones and emergence of 5G networks also support the market growth.
Technological: Advancements in device miniaturization, quantum computing and the introduction of gate-all-around transistors require an epitaxy process, thereby fueling the market. Developments in high-productivity equipment and vertical integration of foundries aid the market.
Key Takeaways
The global epitaxial wafer market is expected to witness high growth over the forecast period supported by rising demand for advanced nodes in logic ICs and expanding 5G infrastructure. 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 dominates the market and is projected to exhibit the fastest growth through 2030 led by countries like China, Taiwan and South Korea.
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, Norstel 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. Key players are involved in capacity expansions, new product launches and adhering to global technical standards to strengthen market presence.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
