Global Epitaxial Wafer Market for Compound Semiconductors Grows at a CAGR of 13.4%

Introduction

A compound semiconductor epitaxial wafer comprises epitaxial growth (epitaxy), which can be used in photonics, microelectronics, spintronics, and photovoltaic applications. Their epitaxial layers govern compound semiconductor epitaxial wafers' wireless, photonic, and electronic properties. The chips and integrated circuits (ICs) produced from these wafers are then processed to be used in a variety of technological devices and gadgets. An epitaxial wafer covers a polished wafer in layers of single silicon carbide crystals that are several micrometers thick. Precision control of thickness, carrier concentration, and defect density is required to enable seamless production. Their epitaxial layers govern compound semiconductor epitaxial wafers' wireless, photonic, and electronic properties. The chips and integrated circuits (ICs) made from these wafers are then processed to make the various technology devices and gadgets used worldwide. A compound semiconductor is produced using deposition technologies using elements from two or more different periodic table groups. Semiconductor-based devices are essential components of most electronic circuits due to their distinctive properties, such as their wide band gap, high operating temperatures, high current & voltage holding capacity, and ability to produce microwave signals.

Market Dynamics

Increase In Demand for Compound Semiconductor Epitaxial Wafers in LED Technology

Epitaxial wafers are semiconducting compound substrates used in various applications, including microelectronics, photovoltaics, and photonics. Compound semiconductor epitaxial wafers are widely used in LED lighting technology, which aids in the market's ongoing global expansion. Additionally, more conventional lighting products are being replaced with LED lighting in the residential, commercial, and industrial sectors as the demand for electricity-saving lighting products increases. The market's expansion benefits from this. Several of us are present in the majority of LED lights. Due to their higher efficiency, these ICs are now produced using epitaxial wafer chips rather than silicon wafers. To enhance the semiconductor wafer's performance, the manufacturer epitaxially coats this compound semiconductor wafer. The epitaxial layer developing on top of the silicon wafer helps to enhance the electrical characteristics of the wafer, increasing the power density of LED lighting.

Emerging Usage of Compound Semiconductors in Smart Technologies

Next-generation smart technologies are expected to be made from a variety of novel materials, including superconductors, carbon nanotubes, and compound semiconductors like GaN. Without new cable types, power electronics, cable insulators, cable dielectrics, and energy storage technologies, a smart grid and other smart infrastructures cannot operate. An increase in these technologies is anticipated to drive demand for GaN and other compound semiconductors as the market matures. It is also anticipated that incorporating advanced compound semiconductor devices and modules will promote new smart infrastructure efficiencies, including raising equipment lifespan and power quality, reducing costs, and enhancing control and reliability of power systems. As a result, it is anticipated that the growth of smart technologies will offer the epitaxial wafer market a lucrative opportunity. People are drawn to automation-based solutions and services in the current IT-dominated world. IoT-based devices are now getting more attention due to their innovative and cutting-edge applications.

Regional Analysis

Asia Pacific is the highest contributor to the global epitaxial wafer market for compound semiconductors and is anticipated to grow at a CAGR of 13.2% during the forecast period. 90% of China's semiconductors are imported, supporting a rapidly expanding economy heavily reliant on foreign technology. According to The Wall Street Journal, China is reportedly close to finalizing a $47 billion investment fund to support chip startup growth and semiconductor research. The compound semiconductor market in the nation is anticipated to grow due to this fund. China is anticipated to grow faster than other regions during the forecast period due to an increase in the adoption of electric vehicles and a surge in demand for sophisticated RADARs and electronic warfare technology. The power electronics industry was the most significant contributor to the market. Regarding end users, the industrial and energy & power segments dominated the China market for compound semiconductor epitaxial wafers.

North America is expected to grow at the fastest CAGR of 15.7% during the forecast period. Due to the growth of the semiconductor industry and escalating trends in data processing, power transmission, and processing, the compound semiconductor market is expanding in the United States. The United States is the nation that adopts technology the quickest, which helps to explain the rapid development of consumer electronics products, new automotive technology like electric and hybrid vehicles, healthcare monitoring systems, and other things. Americans' rising disposable income drives sales of technology and devices based on compound semiconductors. As a result, the demand for epitaxial wafers in the United States is increasing. The power electronics industry was the most significant contributor to the market. The industrial and energy & power segments had the most significant effects on the market.

Key Highlights

• The global epitaxial wafer market for compound semiconductors was valued at USD 3.77 billion in 2022. It is projected to reach USD 11.7 billion by 2031, growing at a CAGR of 13.4% during the forecast period (2023–2031).
• Based on application, the global epitaxial wafer market for compound semiconductors is bifurcated into CS power electronics, CS RF/microwave, CS photonics, CS sensing, and CS quantum. The CS power electronics segment is the highest contributor to the market and is forecasted to grow at a CAGR of 12.3% during the forecast period.
• Based on and user, the global epitaxial wafer market for compound semiconductors is bifurcated into the digital economy, industrial and energy & power, defense/security, transport, consumer electronics, healthcare, and space. The industrial and energy & power segment owns the highest market share and is forecasted to grow at a CAGR of 12.4% during the forecast period.
• Asia Pacific is the highest contributor to the global epitaxial wafer market for compound semiconductors and is expected to grow at a CAGR of 13.2 % during the forecast period.

Competitive Players

Competitive Players

The global epitaxial wafer market for compound semiconductors’ major key players are II-VI Incorporated, Intelligent Epitaxy Technology, Inc. (IntelliEPI), CREE, INC., International Quantum Epitaxy Plc., Masimo Semiconductor, Inc., EPISTAR Corporation, GLOBAL COMMUNICATION SEMICONDUCTORS, LLC, NICHIA CORPORATION, SK SILTRONIC, Sumitomo Electric Industries, Ltd.

Recent Developments

Market News

• In August 2022, Infineon Technologies AG will receive 150 mm silicon carbide (SiC) substrates from II-VI Incorporated under a multi-year contract, increasing Infineon's ability to supply cutting-edge electronic components to significant clients around the world. To meet the demands of Tianyu's supply with long-term clients, II-VI Incorporated has invested in a USD 100 million contract to supply Silicon Carbide Substrates for Power Electronics.
• In July 2022, GlobalWafers Taiwan CO. Ltd. announced a $5 billion investment in a new plant in Texas that will produce and supply 300-millimeter silicon wafers used in semiconductors.

Segmentation

Global Epitaxial Wafer Market for Compound Semiconductor: Segmentation

By Application

• CS Power Electronics
• CS RF/Microwave
• CS Photonics
• CS Sensing
• CS Quantum

By End User

• Digital Economy
• Industrial and Energy & Power
• Defense/Security
• Transport
• Consumer Electronics
• Healthcare
• Space

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA