Summary

Semiconductor Raw Materials Market Size
The global semiconductor raw materials market size was valued at $76.14 billion in 2025 and is projected to reach $108.00 billion by 2031, growing at a CAGR of 6.0% during the forecast period.

Semiconductor Raw Materials Market Overview
Semiconductor raw materials are essential components used in the manufacturing of semiconductor devices, which are critical for various electronic applications, including computers, smartphones, and automotive systems. These materials include silicon, gallium arsenide, indium, and various chemicals used in the fabrication process.
Companies in this sector can benefit significantly from the growing demand for semiconductors driven by technological advancements such as 5G, artificial intelligence, and the Internet of Things (IoT). Additionally, companies like Tata Group are investing heavily in semiconductor fabrication plants to support the burgeoning electronics market in India. As global demand for semiconductors continues to rise, particularly in emerging technologies, stakeholders in the raw materials market stand to gain from increased production capacity and innovation in material development.

Semiconductor Raw Materials Market Dynamics
The semiconductor raw materials market is expected to witness significant growth in the future due to the increasing demand for advanced computing applications such as AI, 5G, and IoT, growth in consumer electronics and portable devices, and technological advancements in semiconductor materials. However, the supply concentration risks due to reliance on a few countries for key raw materials, high costs associated with research and development of new materials, and limited availability of certain rare materials, such as indium and gallium are restraining the growth of the market.

Furthermore, development of alternative materials to reduce dependency on traditional semiconductors, increased focus on recycling and reusing semiconductor materials to mitigate supply risks, and expansion into emerging markets with growing technology needs are the key trends propelling the semiconductor raw materials market.

Increasing Demand for Advanced Computing Applications such as AI, 5G, and IoT is Driving the Semiconductor Raw Materials Market
The increasing demand for advanced computing applications such as AI, 5G, and IoT is significantly impacting the semiconductor raw materials market by driving the need for specialized materials and components.
? For instance, as reported on October 27, 2021, the rollout of 5G technology has necessitated the production of higher-performing chips with greater memory and storage capacity, which in turn requires advanced semiconductor materials.
? Additionally, AI applications are forecasted to account for up to 20% of the $450 billion total semiconductor market by 2025, according to McKinsey.
? Companies like AMD are ramping up production of new AI data center chips to address this surging demand, with plans to introduce upgraded models in late 2024.
Furthermore, government initiatives in various regions are promoting local semiconductor manufacturing capabilities; for example, India's Production-Linked Incentive (PLI) scheme aims to enhance domestic production capacity and reduce reliance on imports. As these technologies continue to evolve and proliferate across industries such as automotive and healthcare, the demand for essential raw materials like silicon, indium, and gallium will likely escalate, creating significant opportunities for stakeholders in the semiconductor raw materials market.

By Application, the Packaging Segment is projected to be the Largest Segment in the Semiconductor Raw Materials Market
Packaging is the largest segment in the semiconductor raw materials market, driven by the increasing miniaturization and complexity of electronic devices, which are essential for applications like AI, 5G, and IoT.
? For instance, companies like TSMC have been at the forefront of developing innovative packaging solutions such as Chip-on-Wafer-on-Substrate (CoWoS) and Integrated Fan-Out (InFO) technologies, which enable higher integration levels and improved thermal management.
? Additionally, Samsung announced a significant investment in its semiconductor packaging technology in South Korea in 2023, aimed at enhancing capabilities for 5G and AI applications.
Government initiatives, particularly in regions like China, are also promoting domestic semiconductor manufacturing to support rapid technological advancements. These developments highlight how the demand for sophisticated packaging solutions is not only transforming the semiconductor raw materials market but also driving innovation across the electronics industry as a whole.

By Geography, North AmericaHolds the Largest Share in the Market Revenue
North America holds the largest share of the semiconductor raw materials market, driven by the rapid expansion of advanced technologies like AI, 5G, and IoT, which require sophisticated semiconductor solutions.
? The U.S. government has recognized this need and enacted the CHIPS Act in August 2022, allocating $52 billion to bolster domestic semiconductor manufacturing and research, thereby reducing reliance on foreign suppliers.
This initiative has spurred significant investments from major companies;
? For instance, Intel announced plans in January 2022 to invest $20 billion in building two new semiconductor fabrication plants in Ohio, aiming to produce cutting-edge chips for various applications.
? Additionally, Texas Instruments has committed to investing $30 billion over the next decade to expand its semiconductor manufacturing capabilities across the U.S., focusing on enhancing production efficiency and meeting growing market demands.
These developments illustrate how government initiatives and corporate investments are collectively fueling the demand for semiconductor raw materials in North America, positioning the region as a critical hub for future technological advancements.

Key Target Audience:
? Semiconductor Manufacturers
? Raw Material Suppliers
? Equipment Manufacturers
? Research Institutions
? End Users

List of the Key Players Profiled in the Report Includes:
? BASF SE
? LG Chem Ltd
? Indium Corporation
? Showa Denko Materials Co. Ltd
? KYOCERA Corporation
? Henkel AG & Company KGAA
? Sumitomo Chemical Co. Ltd
? Dow Chemical Co
? International Quantum Epitaxy PLC
? Nichia Corporation
? CAPLINQ Europe BV
? ShinEtsu Microsi

Recent Developments:
? In May 2025, BASF and Group14 Technologies introduced a silicon-anode binder solution combining BASF’s Licity? binder with SCC55?. This formulation improves lithium-ion battery performance in extreme conditions.
? In March 2025, LG Chem introduced a Precursor-Free (LPF) cathode material during InterBattery 2025. Unlike conventional cathode materials that require complex precursor processing, this innovation eliminates the need for intermediate materials, making battery production more efficient, cost-effective, and environmentally friendly.
? In February 2025, Henkel launched a bio-acrylic acid that is derived from renewable vegetable oils instead of petroleum-based sources. This innovation provides a more sustainable raw material for manufacturing electronic adhesives and semiconductor coatings, helping reduce the carbon footprint of semiconductor production while maintaining high performance.
? In October 2024, Indium Corporation announced the release of a new line of solder paste specifically designed for high-temperature applications in semiconductor packaging. This product aims to improve reliability and performance in demanding environments.
? In September 2024, KYOCERA unveiled its latest ceramic substrates designed for power semiconductors, which offer improved thermal conductivity and miniaturization capabilities. This product launch is aimed at meeting the increasing demand for efficient power management solutions in electronics.
? In August 2024, Showa Denko announced a partnership with major semiconductor manufacturers to develop new materials that enhance the efficiency of chip production processes. This collaboration is expected to yield innovative solutions by early 2025.

Market Segmentation:
The research report includes in-depth coverage of the industry analysis with size, share, and forecast for the below segments:

Market by, Application:
? Fabrication
? Packaging

Market by, End User:
? Consumer Electronics
? Telecommunication
? Manufacturing
? Automotive
? Energy and Utility
? Other End Users

Market by, Geography:
The semiconductor raw materials market report also analyzes the major geographic regions and countries of the market. The regions and countries covered in the study include:
? North America (The United States, Canada, Mexico), Market Estimates, Forecast & Opportunity Analysis
? Europe (Germany, France, UK, Italy, Spain, Rest of Europe), Market Estimates, Forecast & Opportunity Analysis
? Asia Pacific (China, Japan, India, South Korea, Australia, New Zealand, Rest of Asia Pacific), Market Estimates, Forecast & Opportunity Analysis
? South America (Brazil, Argentina, Chile, Rest of South America), Market Estimates, Forecast & Opportunity Analysis
? Middle East & Africa (UAE, Saudi Arabia, Qatar, Iran, South Africa, Rest of Middle East & Africa), Market Estimates, Forecast & Opportunity Analysis

The report offers insights into the following aspects:
? Analysis of major market trends, factors driving, restraining, threatening, and providing opportunities for the market.
? Analysis of the market structure by identifying various segments and sub-segments of the market.
? Understand the revenue forecast of the market for North America, Europe, Asia-Pacific, South America, and Middle East & Africa.
? Analysis of opportunities by identification of high-growth segments/revenue pockets in the market.
? Understand major player profiles in the market and analyze their business strategies.
? Understand competitive developments such as joint ventures, alliances, mergers and acquisitions, and new product launches in the market.

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Table of Contents

1 Market Introduction
1.1 Market Definition
1.2 Research Scope and Segmentation
1.3 Stakeholders
1.4 List of Abbreviations

2 Executive Summary

3 Research Methodology
3.1 Identification of Data
3.2 Data Analysis
3.3 Verification
3.4 Data Sources
3.5 Assumptions

4 Market Dynamics
4.1 Market Drivers
4.2 Market Restraints
4.3 Market Opportunities
4.4 Market Challenges

5 Porter's Five Force Analysis
5.1 Bargaining Power of Suppliers
5.2 Bargaining Power of Buyers
5.3 Threat of New Entrants
5.4 Threat of Substitutes
5.5 Competitive Rivalry in the Market

6 Global Semiconductor Raw Materials Market by, Application
6.1 Overview
6.2 Fabrication
6.2.1 Process Chemicals
6.2.2 Photomasks
6.2.3 Electronic Gases
6.2.4 Sputtering Targets
6.2.5 Silicon
6.2.6 Other Fabrication Materials
6.3 Packaging
6.3.1 Substrates
6.3.2 Lead-frames
6.3.3 Ceramic Packages
6.3.4 Bonding Wire
6.3.5 Encapsulation Resins (Liquid)
6.3.6 Die Attach Materials
6.3.7 Other Packaging Applications

7 Global Semiconductor Raw Materials Market by, End User
7.1 Overview
7.2 Consumer Electronics
7.3 Telecommunication
7.4 Manufacturing
7.5 Automotive
7.6 Energy and Utility
7.7 Other End Users

8 Global Semiconductor Raw Materials Market by, Geography
8.1 Overview
8.2 North America
8.2.1 US
8.2.2 Canada
8.2.3 Mexico
8.3 Europe
8.3.1 Germany
8.3.2 France
8.3.3 UK
8.3.4 Italy
8.3.5 Spain
8.3.6 Rest of Europe
8.4 Asia Pacific
8.4.1 China
8.4.2 Japan
8.4.3 India
8.4.4 South Korea
8.4.5 Australia
8.4.6 New Zealand
8.4.7 Rest of Asia Pacific
8.5 South America
8.5.1 Brazil
8.5.2 Argentina
8.5.3 Chile
8.5.4 Rest of South America
8.6 Middle East & Africa
8.6.1 UAE
8.6.2 Saudi Arabia
8.6.3 Qatar
8.6.4 Iran
8.6.5 South Africa
8.6.6 Rest of Middle East & Africa

9 Key Developments

10 Company Profiling
10.1 BASF SE
10.1.1 Business Overview
10.1.2 Product/Service Offering
10.1.3 Financial Overview
10.1.4 SWOT Analysis
10.1.5 Key Activities
10.2 LG Chem Ltd
10.3 Indium Corporation
10.4 Showa Denko Materials Co. Ltd
10.5 KYOCERA Corporation
10.6 Henkel AG & Company KGAA
10.7 Sumitomo Chemical Co. Ltd
10.8 Dow Chemical Co
10.9 International Quantum Epitaxy PLC
10.10 Nichia Corporation
10.11 CAPLINQ Europe BV
10.12 ShinEtsu Microsi