Market Trends of Wafer Cleaning Equipment Industry
Smartphones & Tablets to Drive the Market Growth
- The increase in the usage of consumer electronic devices such as smartphones and tablets has stimulated the growth of the wafer-cleaning equipment market. Emerging new technologies and growth in consumer demand for more advanced smartphones and tablets have boosted the growth pace of the industry to a great extent. For instance, according to Ericsson, the global number of smartphone subscribers is anticipated to reach 7,840 million by 2027.
- The enormous growth in the tablets and smartphones market has raised the need for semiconductor wafers, thus raising the demand for wafer-cleaning equipment. According to India Cellular & Electronics Association (ICEA), India is anticipated to acquire a value of USD 100 billion in manufacturing laptops and tablets by 2025. In addition, the Indian mobile phone market is expected to generate INR 2.4 trillion (USD 29.38 billion) in revenue by FY2026.
- The demand for smartphones has increased, and PC sales have declined because most tasks, such as emailing, social media, gaming, and chatting, can now be done via smartphones. According to GSMA, there will be about 7.5 billion smartphone connections by 2025, accounting for above four in five mobile connections.
- Smartphone technology is developing to influence the consumer’s daily marketing strategies, business activities, and lifestyle. The acceptance of smartphone technology is a crucial factor in the success of today’s technology. Due to this, identifying the main factors that influence the consumer’s behavior toward smartphone technology is extremely valuable.
- According to IBEF, Samsung announced plans to invest INR 3.7 lakh crore (USD 50 billion) in India over the next five years to manufacture phones. It plans to produce phones worth INR 2.2 lakh crore (USD 30 billion), priced above INR 15,000 (USD 200), under the PLI scheme. Such expansion in consumer electronics such as smartphones and tablets may further drive the demand for Wafer Cleaning equipment.
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Asia Pacific to Experience Significant Market Growth
- Asia Pacific region has appeared as the largest semiconductor market. The growing penetration of digital technologies, rapid urbanization, and industrialization contribute to this growth. Additionally, the presence of large semiconductor manufacturing, packaging, and assembly industries also creates a favorable scenario for developing the wafer equipment market in the region.
- In addition, China is the largest semiconductor hub not only in Asia-Pacific but also in the world. As per Semiconductor Industry Association, China recently led the semiconductor market with total chip sales of USD 192.5 billion, marking an expansion of 27.1 percent year on year. The country also draws huge investments from significant chipmakers to extend chip production by launching new facilities. Further, in 2022, WSTS forecasted global sales totaled USD 573 billion.
- Furthermore, Japanese companies are creating heavy investments to improve the production of SiC power semiconductors driven by the increased demand from the EV industry. For instance, in March 2022, Tokyo-headquartered Showa Denko KK introduced the mass production of silicon carbide single crystal wafers (SiC wafers) with a diameter of 6 inches (150 mm), which are used as materials for SiC epitaxial wafers to be processed and installed into SiC power semiconductors.
- Asia-Pacific is one of the vital semiconductor wafer cleaning markets owing to the presence of the ever-growing consumer electronics and semiconductor industries. The rise in demand for small and smart portable devices supplements the market growth in the region. According to IBEF, India's consumer electronics (ACE) market increased at 9 percent CAGR to reach INR 3.15 trillion (USD 48.37 billion) in 2022. Furthermore, in September 2022, monthly mobile phone exports from India crossed the USD 1 billion mark for the first time.
- The stay-at-home trend spurred by the coronavirus pandemic continues to drive the demand for semiconductor chips. For instance, according to WSTS, the estimated semiconductor industry revenue in the Asia Pacific region is expected to reach over USD 400 billion in 2023. Such trends encourage leading equipment manufacturers to enter the Asia Pacific (APAC) market.
- For instance, ASML, one of the most prominent vendors in the market, recently opened a new state-of-the-art training facility in Tainan, Taiwan. The above expansion in the region may further create demand for the Wafer Cleaning Equipment in the forecasted period.
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