2023 Semiconductor Industry Market Development Trend Analysis: With the steady expansion of the global and Chinese semiconductor market scale

　　Materials and equipment are the cornerstone of the semiconductor industry and the engine that drives technological innovation in integrated circuits. Generation 1 technology relies on generation 1 processes, which rely on generation 1 materials and equipment to achieve.

　　Semiconductor materials include wafer manufacturing materials and packaging materials. Wafer manufacturing materials include silicon wafers, masks, electronic gases, photoresists, CMP polishing materials, wet electronic chemicals, and targets. Packaging materials include packaging substrates, lead frames, bonding wires, packaging materials, ceramic substrates, chip bonding materials, and other packaging materials.

　　In terms of the supply of semiconductor raw materials, China is one of the largest suppliers of metallic silicon in the world. With the continuous promotion of domestic optimization of production capacity, the global industrial silicon production capacity has shown a gradual downward trend since 2019, reaching only 6.32 million tons in 2021. It is worth noting that although the production capacity has been gradually optimized, due to the explosion of demand for automotive chips, there has been a significant increase in industrial silicon production.

　　The overall demand for semiconductors determines the scale of semiconductor materials. With the steady expansion of the global and Chinese semiconductor market, the demand for semiconductor materials continues to grow. The data shows that the global semiconductor market size reached 555.9 billion US dollars in 2021, an increase of 26.2% compared to 2020. China's integrated circuit sales exceeded a trillion yuan, reaching 1045.83 billion yuan, an increase of 18.2% year-on-year in 2020.

　　In terms of the current situation of the global semiconductor material market, with the continuous growth of semiconductor demand, the overall scale of global semiconductor materials continues to expand. According to data, the global semiconductor material market size reached 64.273 billion yuan in 2021, an increase of 16% compared to 2020.

　　As far as the regional distribution of global semiconductor materials is concerned, Taiwan, China and Chinese Mainland rank first and second respectively, accounting for 22.9% and 18.6% respectively. Although China's market share is second at present, the overall products are still concentrated in low-end semiconductor materials, high-end photoresists, CMP polishing pads, etc. are still developing slowly, and there is a wide space for domestic substitution.

　　In 2021, the overall sales of materials reached $64.3 billion, including $40.4 billion (15-20% of manufacturing costs) for materials used in wafer front-end manufacturing and $23.9 billion for materials used in back-end packaging and testing. Wafer manufacturing materials mainly include silicon wafers, photomasks, photoresists and auxiliary materials, CMP polishing materials, process chemicals, targets, electronic specialty gases, etc. In terms of segmented wafer manufacturing, according to data statistics, in the global wafer manufacturing material market in 2020, the silicon wafer market share of the material with the highest proportion in the wafer manufacturing material market was 37%.

　　For example, the global market for silicon wafers is mainly dominated by a small number of manufacturers such as Xinyue Chemical and SUMCO. Domestic manufacturers still have significant room for improvement in large size silicon wafers, especially 12 inches. China's silicon wafer industry started relatively late, and localization is still in a continuous advanced stage,. Currently, domestic silicon wafer suppliers mainly focus on supplying 8-inch and below silicon wafers, unable to meet mainstream demand.

　　The competition pattern of semiconductor photomask is dominated by leading enterprises in the United States and Japan, with high industry concentration. The top three semiconductor photomask manufacturers in the world are Falkness in the United States, Greater Japan Printing, and Japanese letterpress printing. Among them, Falkness has a market share of approximately $1.3 billion, accounting for approximately 35% of the total market size, and CR3 accounts for 85% of the total market share. Due to the strict blockade imposed by major factories on the production technology of photomask, the semiconductor photomask market, especially in the precision processing field, is heavily monopolized. Only a few domestic enterprises, such as Wuxi Huarun and Wuxi Zhongweineng, produce 0.13 μ For photomasks above m, almost all photomasks such as HTM, GTM, and PSM rely on imports.

　　In 2021, the market size of semiconductor materials in Chinese Mainland will be about 11.9 billion US dollars. In recent years, the global share of China's semiconductor material market has continued to grow, rising from 10% in 2010 to 19% in 2021. In the future, it is expected that on the one hand, against the backdrop of accelerated growth in capital expenditure in the global semiconductor industry, the demand for materials is expected to accelerate. On the other hand, with the continuous growth of China's wafer production capacity in the global proportion, China's semiconductor materials are expected to achieve faster than the global average demand growth.