Wafer fabrication materials revenue declined 7.0% to $41.5 billion in 2023, while packaging materials revenue fell 10.1% to $25.2 billion last year. The silicon, photoresist ancillaries, wet chemicals, and chemical mechanical planarization (CMP) segments logged the biggest contractions in the wafer fabrication materials market. The organic substrates segment accounted for much of the packaging materials market contraction.
Demand for semiconductors softened in 2023 as the industry worked to reduce excess inventory, leading to lower fab utilization rates and, consequently, a drop in materials consumption.
Taiwan, at $19.2 billion in revenue, was the world's largest consumer of semiconductor materials for the 14th consecutive year. Mainland China, at $13.1 billion in revenue, continued to register year-over-year growth, ranking second in 2023, while Korea remained the third largest consumer with $10.6 billion in revenue. All regions except Mainland China posted high single- or double-digit declines in 2023.
Region |
| 2023 |
| 2022 |
| YoY % Growth |
Taiwan |
| $19,176 |
| $20,129 |
| -4.7 % |
Mainland China |
| $13,085 |
| $12,970 |
| 0.9 % |
South Korea |
| $10,575 |
| $12,901 |
| -18.0 % |
Rest of World |
| $7,177 |
| $8,627 |
| -16.8 % |
Japan |
| $6,828 |
| $7,205 |
| -5.2 % |
North America |
| $5,561 |
| $6,278 |
| -11.4 % |
Europe |
| $4,319 |
| $4,580 |
| -5.7 % |
Total |
| $66,721 |
| $72,691 |
| -8 % |
|
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Source: SEMI Materials Market Data Subscription (MMDS), May 2024 | ||||||
Note: Summed subtotals may not equal the total due to rounding.
Rest of the World includes Singapore, Malaysia, the Philippines, other areas of Southeast Asia, and smaller global markets.
The Materials Market Data Subscription from SEMI provides annual revenue with 10 years of historical data and a two-year forecast. The annual subscription includes quarterly updates for the materials segment and reports revenue for seven market regions (North America, Europe, Japan, Taiwan, South Korea, Mainland China and Rest of World). The report also features detailed historical data for silicon shipments and revenues for photoresist, photoresist ancillaries, process gases and lead frames.
For more information about the report or to subscribe, please contact the SEMI Market Intelligence Team at Email Contact. More details are also available on the SEMI Market Data webpage.
Download a sample of the MMDS report.
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