WET CHEMICALS FOR ELECTRONICS AND SEMICONDUCTOR APPLICATIONS MARKET ANALYSIS

Wet Chemicals For Electronics And Semiconductor Applications Market Size and Trends

Global wet chemicals for electronics and semiconductor applications market is estimated to be valued at USD 4.07 Bn in 2024 and is expected to reach USD 6.58 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 7.1% from 2024 to 2031.

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Wet chemicals are used in several electronics and semiconductor manufacturing processes such as wafer cleaning, etching, and electroplating. The market is expected to witness significant growth over the forecast period due to rising demand for semiconductors from various end-use industries such as consumer electronics, automotive, and industrial. Increasing miniaturization of electronic components boosts the need for high-performance wet chemicals to enable finer feature dimensions and denser chip designs. Technological advancements in wafer fabrication also boosts demand.

 Growing Usage of Wafer Cleaning Solutions in Semiconductor Manufacturing

Growing usage of wafer cleaning solutions in semiconductor manufacturing can drive the growth of the global wet chemicals for electronics and semiconductor applications market. As semiconductor manufacturers aim to continually scale down feature sizes and integrate more transistors onto chips, cleaning processes have become significantly important to remove tiny particles, residues and contaminants from wafer surfaces. Presence of even microscopic particles and impurities can compromise functionality and reliability of semiconductor devices. Thus, manufacturers extensively utilize specially formulated wet etchants, solvents and other cleaning chemistries during multiple cleaning steps in the complex semiconductor fabrication process.  Continuous miniaturization achieved through newer and advanced semiconductor fabrication technologies such as 7 nanometer and sub-10 nanometer nodes have put greater emphasis on ultra-clean manufacturing environments and stringent cleaning standards. This requires the use of high-purity wet chemicals and optimized cleaning solutions to prevent defects, corrosion and unintended etching. Furthermore, new challenges arising from more sophisticated device designs, advanced materials and 3D device architectures have strengthened the need for innovative wafer cleaning methods. Semiconductor players are consistently developing and implementing novel cleaning techniques using advanced wet chemicals to ensure device performance and yield targets are met. This growing application of customized wet chemicals for critical cleaning purposes in the complex semiconductor manufacturing process can drive the market growth.

Market Concentration and Competitive Landscape

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The increasing sophistication of electronic products is having a major impact on the global wet chemicals for electronics and semiconductor market. As devices become more compact and complex, requiring ever more advanced manufacturing processes, there is greater reliance on specialized wet etchants and other chemicals.  Semiconductors and integrated circuits now feature Nano scale dimensions and multilayer architectures. Producing such minute, layered structures demands highly precise etching and cleaning techniques. Traditional wet baths and solvents are giving way to customized chemical formulations that can remove or deposit individual atomic planes with nanometer accuracy. Leading foundries are always working to shrink transistor sizes and add new materials, pushing chemical vendors to develop even gentler yet more effective solutions. This drive for improved resolution and layer control extends beyond chip making as well. Advanced packaging and miniaturization throughout consumer electronics rely on the capabilities of wet processing. Complex multilevel interconnects, three-dimensional through-silicon vias, and modern display technologies would not be possible without the selectivity and uniformity afforded by specialized wet chemicals. Their use allows for angstrom-level control over critical dimensions.

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Fluctuations in the prices of raw materials such as chemicals and gases used in the production of wet chemicals for electronics and semiconductors applications poses a significant challenge for the sustainable growth of this market globally. Manufacturers of wet chemicals have to consistently deal with the volatility in input costs due to various macroeconomic and geopolitical factors beyond their control. This makes it extremely difficult for them to maintain stable product prices offered to customers. Frequent rises in raw material costs squeeze the margins of wet chemical producers. In some cases, the inflated expenses cannot be fully passed on to buyers via price hikes due to competitive pressures. This exerts downward pressure on the profits of manufacturers.  The uncertainty and unpredictability caused by fluctuations in raw material pricing make long term strategic planning a complex task for market players. It discourages investments aimed at enhancing capacities and capabilities. This is not conducive to ensuring adequate, timely supply of wet chemicals to meet the ever-growing demand from the electronics and semiconductor manufacturing sectors, especially amid current global chip shortage issues. According to United Nations Industrial Development Organization (UNIDO), the outbreak of COVID-19 exacerbated pre-existing downward pressures on global value chains for electronics and disrupted supplies of critical inputs. This increased the vulnerabilities in semiconductor manufacturing due to dependence on imports for raw materials.

Opportunity: Rising demand for consumer electronics & adoption of new technologies

The global consumer electronics market has been witnessing robust growth in recent years driven by rising disposable incomes, urbanization and changing lifestyles across major countries. Advanced technologies like artificial intelligence, 5G, Internet of Things and augmented/virtual reality are being rapidly adopted in consumer devices. This widespread proliferation and the ongoing innovation cycle have increased the demand for more powerful and sophisticated electronics. Semiconductor chips and components are the building blocks of all modern devices and play a critical role in enabling new features. Their manufacturing requires specialized chemicals and processes.  As the complexity and performance of chips increase with each new generation to support emerging technologies, semiconductor foundries and electronics manufacturers are constantly upgrading their facilities and production lines. This has significantly boosted the need for high-purity wet chemicals that can precisely etch, clean and deposit thin film layers on silicon wafers or printed circuit boards during manufacturing. For example, hydrofluoric acid and ammonium hydroxide are crucial for delicate etching steps to carve out circuit patterns. Organic solvents like acetone and isopropyl alcohol are heavily used for cleaning. Chemical vapor deposition (CVD) and physical vapor deposition (PVD) processes rely on precursor gases and deposition enhancers to build up transistor layers atom by atom.

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In terms of product type, acetic acid segment is estimated to contribute the 36.4% market share in 2024, owing to its superior chemical properties that make it extensively used in electronics and semiconductor applications. Acetic acid has unique solvent properties and is effective in cleaning semiconductor wafers during various photolithography processes. Its volatility allows for quick drying without leaving residues behind. The bonding structure and molecular weight of acetic acid allows it to dissolve organic residues like photoresists efficiently. It is also cost-effective for electronics manufacturing. Acetic acid works exceptionally well for removing post-etch and photoresist residues without causing surface damage to wafers. Leading semiconductor manufacturers prefer acetic acid due to its high performance and reliability. With growing complexity in chip designs and wafer sizes, the demand for high-purity acetic acid solutions increases.

Insights, By Application: Thriving semiconductor industry boosts application in semiconductors

In terms of application, semiconductor segment is estimated to contribute the 41.4% market share in 2024, owing to robust growth of the global semiconductor industry. As semiconductor components become more advanced with each new generation, these require an extensive variety of specially formulated wet chemicals. The miniaturization of circuits has increased the sensitivity of semiconductors towards contamination, thus, promoting the use of high-purity wet chemicals for delicate cleaning applications. Etching and cleaning semiconductors post-doping or metallization is crucial for ensuring optimal functionality and reliability. With semiconductor foundries rapidly upgrading their manufacturing infrastructure worldwide, there is huge demand for wet chemicals tailored for diverse fabrication needs. Rising new technologies such as IoT, 5G, and AI has boosted semiconductor sales, thus, increasing consumption of wet chemicals.

Insights, By Form: Liquid form dominates due to ease of application

In terms of form, liquid form segment is estimated to contribute the 42.4% share of the market in 2024, owing to the ease of application in the electronics fabrication workflow. Liquid chemicals can uniformly coat wafer surfaces through immersion and spray-coating techniques. These effectively penetrate complex 3D structures on chips during removal of residues. Introducing liquid chemicals into processing equipment is also logistically simpler than gases or solids. The volatility of liquid-based wet chemicals enables quick drying without residues, an important factor considering the short turnaround times required for mass semiconductor production. Leading fab operators prefer liquids as these can be readily dispensed through automated spray nozzles and pipettes. Liquids possess superior flow properties under normal conditions as compared to solids. Overall, liquid wet chemicals reduce processing complexities and costs for electronics manufacturing.

Regional Insights

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Asia Pacific region dominates the global wet chemicals for electronics and semiconductor applications market with estimated 37.6% share in 2024. The presence of leading semiconductor manufacturers such as Samsung, SK Hynix, Taiwan Semiconductor Manufacturing Company (TSMC) and other foundries in countries like South Korea, Taiwan, China and Japan has boosted demand for wet chemicals.

South America is emerging as the fastest growing regional market. While the market size is currently small compared to Asia Pacific, South America is witnessing significant capacity additions by global foundries and semiconductor players. For example, Samsung, Intel and GLOBALFOUNDRIES are expanding manufacturing footprint in countries like Brazil, and this boosts demand for wet chemicals. South America offers attractive incentives and tax benefits to boost semiconductor manufacturing. As capacities come online in the next five years, wet chemical consumption is projected to rise rapidly to meet the needs of both existing and new fabs in South America.

Market Report Scope

Wet Chemicals For Electronics And Semiconductor Applications Industry News

• In 2023, Entegris to sell electronic chemicals business to Fujifilm
• In June 2023, Clariant Oil Services launched PHASETREAT WET, a more sustainable demulsification process for the oil and gas industry. PHASETREAT WET uses nanoemulsion technology to reduce carbon emissions and demulsifier dosages by up to 75%.
• In 2022, 2022, Entegris, Inc. completed its acquisition of CMC Materials, Inc. for approximately USD 5.7 billion. The acquisition strengthened Entegris' position as a global leader in electronic materials, and gave it a more comprehensive portfolio and better operating capabilities.

Definition: Global Wet Chemicals for Electronics and Semiconductor Applications Market involves the use of wet chemicals in various cleaning, etching, and deposition processes involved in the manufacturing of electronics and semiconductor devices. Wet chemicals like acids, bases, solvents, etchants and surfactants are used during critical steps like wafer cleaning, thin film deposition, etching and photolithography.

Market Segmentation

• Product Type Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • Acetic Acid
  • Isopropyl Alcohol (IPA)
  • Hydrogen Peroxide
  • Hydrochloric Acid
  • Ammonium Hydroxide
  • Hydrofluoric Acid
  • Others
•  Application Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • Semiconductor
  • IC packaging
  • PCB
  • Others
•  Form Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • Liquid form
  • Gas form
  • Solid form
• Regional Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Avantor Inc.
  • BASF SE
  • Eastman Chemical Company
  • FUJIFILM Corporation
  • Honeywell International LLC
  • KANTO CHEMICAL CO. INC.
  • KMG Chemicals (Cabot Microelectronics)
  • kredence Pvt Ltd
  • Solvay
  • T.N.C. INDUSTRIAL CO. LTD
  • Technic Inc.
  • Linde
  • Zhejiang Kaisn Fluorochemical Co. Ltd