Semiconductor Silicon Wafer Market Report By Insights, Size, and Growth - 2031

The semiconductor silicon wafer market was valued at approximately US$ 12.52 billion in 2023 and is projected to grow to US$ 18.09 billion by 2031, reflecting a compound annual growth rate (CAGR) of 4.7% from 2023 to 2031.

This market is categorized into five primary regions: North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South & Central America. In 2023, the Asia Pacific region led the market, followed by North America and Europe. Silicon wafers serve as the fundamental components for the majority of semiconductors, which are crucial for all electronic devices, thereby driving increased production levels.

According to the quarterly analysis by the SEMI Silicon Manufacturers Group (SMG), global silicon wafer shipments rose by 7.1% quarter-over-quarter, reaching 3,035 million square inches (MSI) in the second quarter of 2024. Numerous companies in North America are establishing semiconductor silicon wafer manufacturing facilities. For instance, NorSun, a Norwegian silicon wafer manufacturer, announced plans to construct a new 5-GW silicon ingot and wafer manufacturing plant in Tulsa, Oklahoma.

Additionally, various governments in the region are investing in semiconductor manufacturing. In April 2024, TSMC revealed that it had signed a nonbinding preliminary memorandum of understanding (PMT) with the US Department of Commerce for up to US$ 6.6 billion in direct funding under the CHIPS and Science Act. TSMC is also planning to develop a third fabrication facility at TSMC Arizona to meet the rising customer demand while employing the most advanced semiconductor process technologies available in the United States.

The Asia Pacific region is recognized as a central hub for semiconductor manufacturing, leading to a substantial demand for silicon wafers. Countries in this region are focusing on enhancing their production capabilities for semiconductor silicon wafers. In China, the semiconductor supply chain has acknowledged the significance of silicon wafers, which constitute about 30% of the total costs associated with chip manufacturing. The National Silicon Industry Group (NSIG), the largest domestic silicon wafer producer in China, received approval in July 2024 for long-term capacity expansion, aiming to increase its monthly output from 300,000 to 1.2 million wafers to support the growth of wafer fabrication in China between 2024 and 2025.

The market is further segmented by node type, including 180 nm, 130 nm, 90 nm, 65 nm, 45 nm, 22 nm, 14 nm, 7 nm, and 5 nm and below. The 7 nm segment held the largest market share in 2023. This technology introduced innovative methods that enhanced both scalability and efficiency, significantly impacting chip performance and manufacturing processes. Samsung, for instance, pioneered the use of extreme ultraviolet (EUV) lithography with its 7 nm technology, allowing for more detailed exposure of silicon wafers compared to traditional immersion ArF (argon fluoride) methods. EUV technology simplifies the process by requiring only a single mask layer instead of multiple layers, which reduces turnaround times and improves yield rates. These advancements contribute to a 40% reduction in area while doubling energy efficiency, and the use of 20% fewer masks during production enhances cost-effective scalability across various products.

Key players in the semiconductor silicon wafer market include Okmetic, Wafer Works Corp, SUMCO CORPORATION, NANOCHEMAZONE, Alfa Chemistry, LONGi Green Energy Technology Co Ltd, Wafer World Inc., WaferPro, PI-KEM Limited, Nano Quarz Wafer GmbH, Sino-American Silicon Products Inc., Nanografi Nano Technology, Fujimi Incorporated, Hangzhou Semiconductor Wafer Co., Ltd., Ferrotec Holdings Corporation, Silicon Materials, Inc., Shin-Etsu Chemical Co Ltd, SK Siltron Co., Ltd., Siltronic AG, and GlobalWafers Co., Ltd..

The overall market size for semiconductor silicon wafers has been determined through a combination of primary and secondary research methods. Extensive secondary research was conducted using both internal and external sources to gather qualitative and quantitative data regarding the semiconductor silicon wafer market size. This approach also facilitated a comprehensive overview and forecast of the market across all segments. Furthermore, numerous primary interviews were held with industry stakeholders to validate the findings and gain deeper analytical insights. This process involved discussions with industry experts, including VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the semiconductor silicon wafer sector.