KUALA LUMPUR (March 17): The global semiconductor materials market rose 15.9% year-on-year to US$64.3 billion (RM268.97 million) in revenue in 2021, eclipsing the previous market high of US$55.5 billion set in 2020.

In a statement Wednesday (March 16), US-based Semiconductor Equipment & Materials International (SEMI) said wafer fabrication materials and packaging materials revenues in 2021 totalled US$40.4 billion and US$23.9 billion, respectively, for year-on-year increases of 15.5% and 16.5%.

It said the silicon, wet chemicals, chemical-mechanical planarization (CMP), and photomask segments showed the strongest growth in the wafer fabrication materials market, while packaging materials market growth was largely driven by the organic substrates, leadframes, and bonding wire segments.

SEMI president and CEO Ajit Manocha said the global semiconductor materials market saw exceptional growth in 2021 on the strength of robust secular demand for chips and the industry’s expansion of production capacity.

“All regions registered double-digit or high single-digit growth last year to meet historic demand for electronics as digital transformation continues apace,” he said.

SEMI said that for the 12th consecutive year, Taiwan, at US$14.7 billion, was the world's largest consumer of semiconductor materials on the strength of its foundry capacity and advanced packaging base.

It said China registered the strongest absolute year-on-year growth in 2021 to rank second, while South Korea remained the third largest consumer of semiconductor materials.