Wet Chemicals Market Takes a Dip But Bounces Back for 2024

After a modest contraction in 2023, the semiconductor wet chemicals market is projected to exhibit a robust 6% growth in 2024, driven primarily by increased chemical consumption associated with leading-edge device technologies, particularly the ramp-up of 3DNAND layers to 5xxL configurations.

Amidst the ongoing expansion of global chip fab capacity, the market is anticipated to achieve a CAGR of 6% from 2023 to 2027, reaching a market size of US$6.9 billion by 2027.

This dip in 2023 can be attributed to several factors. Geopolitical tensions, supply chain disruptions, and inflationary pressures contributed to a slowdown in the overall semiconductor market, impacting demand for wet chemicals used in chip fabrication.

The market is shifting, driven by the rise of IDMs and their ambitious global fab expansions. This shift is a strategic response to challenges, from logistical complexities to soaring energy costs and current geopolitical tensions. Building regionalized supply chains tailored to IDM requirements is no longer a luxury, but a critical weapon to maintain competitiveness in a volatile market.

The historical stability of semiconductor wet chemicals pricing has been irrevocably disrupted by the events of the past few years. 2021 and 2022 saw marked price adjustments, and TECHCET forecasts this trend to continue in 2023 and beyond. This phenomenon is primarily driven by suppliers' reluctance to revert to pre-pandemic pricing models due to concerns regarding escalating energy costs and the growing emphasis on regionalized supply chains.