Global Indium Phosphide Wafer Market Grows at a Staggering CAGR of 13.77%

Introduction

Indium phosphide (InP) is an elemental semiconductor composed of indium and phosphorus. The center of its cubic crystal structure contains faces. Thermal decomposition of a trialkyl indium compound and phosphide combination is possible by combining the purified components at high temperature and pressure or by reacting white phosphorus with indium iodide at 400 degrees Celsius. InP is utilized in high-power and high-frequency circuits because its electron velocity surpasses that of silicon and gallium arsenide, the most common semiconductors.

Market Dynamics

Increasing Use of Optoelectronic Devices Drives the Global Market

Electronic components called optoelectronic devices detect and regulate light and convert electrical information into infrared or visible energy or the opposite. The dynamic applicability areas of optoelectronic devices are predicted to undergo a quantum shift as a result of recent advancements in the field of optoelectronics, including plasmonic nanostructures, optically active quantum dots, microscopic light bulbs, perovskite transistors, laser-powered 3D display technology, low-cost 3D imaging, and Laser Li-Fi.

In order to cater to the varied demands of consumers, enterprises are extending the range of their product offerings. In April 2022, Transfer Multisort Elektronik will offer The Everlight line of optoelectronic devices, which now includes IR LEDs, photodiodes, and phototransistors (TME). New IR LEDs have been added to the portfolio. They can generate up to 150mW of output power. The LEDs support a broad range of input voltages up to 4.0V, and emission angles between 20 and 160 degrees are possible. These factors drive market expansion.

Rising Construction of Data Center Creates Tremendous Opportunities

In recent years, the widespread adoption of cloud services has increased the demand for data centers. With the expansion of data centers, there may be an increase in demand for InP wafers. Some major data center market players intend to invest heavily in hyperscale data centers. In June 2021, Equinix announced its intention to construct 32 hyperscale data centers in some of the world's most important markets. With an investment of over USD 6.9 billion and a total capacity of 600 megawatts, the company intends to enter new markets and strengthen its position in the expanding landscape of hyper-scale data centers.

Regional Analysis

Asia-Pacific is the most significant global indium phosphide wafer market shareholder and is estimated to exhibit a CAGR of 14.21% during the forecast period. The Asia-Pacific region commands a substantial portion of the global semiconductor foundry market, thanks to the presence of prominent businesses like TSMC and Samsung Electronics. South Korea, Taiwan, Japan, and China all hold substantial market shares in the region. The significant growth in research and partnerships contributes to the expansion of the market. LioniX International (LXI) and the Institute of Microelectronics Chinese Academy of Science (IMECAS) have agreed to extend their Photonic Integrated Circuit (PIC) platform partnership by actively enhancing the functionality and offering both platforms.

In addition, the growing investments in 5G are analyzed to determine their impact on market demand during the forecast period. DOCOMO, for instance, began offering limited 5G commercial services in Japan's major cities in March 2020. The company plans to spend over USD 7 billion by 2025 to extend its network to cover 97% of the country's populated areas. It intends to install 5,001 28GHz base stations and 8,001 3.7GHz and 4.5GHz base stations. Thus, the factors above contribute to the expansion of the regional market.

Key Highlights

• The global indium phosphide wafer market was valued at USD 142.13 million in 2022. It is estimated to reach USD 453.87 million by 2031, growing at a CAGR of 13.77% during the forecast period (2023–2031).
• Based on diameter, the global indium phosphide wafer market is bifurcated into 50.8 mm or 2", 76.2 mm or 3", and 100 mm or 4" and above. The 100 mm or 4" and above segment owns the highest market share and is estimated to exhibit a CAGR of 14.23% over the forecast period.
• Based on end-user industry applications, the global indium phosphide wafer market is segmented into consumer electronics, telecommunications, medical, and other end-user industry applications. The telecommunications segment dominates the global market and is estimated to exhibit a CAGR of 12.71% during the forecast period.
• Asia-Pacific is the most significant global indium phosphide wafer market shareholder and is estimated to exhibit a CAGR of 14.21% during the forecast period.

Competitive Players

1. Sumitomo Electric Industries, Ltd. (Japan)
2. AXT, Inc. (USA)
3. IntelliEPI Inc. (Taiwan)
4. Wafer Technology Ltd. (UK)
5. JX Nippon Mining & Metals Corporation (Japan)
6. Furuya Metal Co., Ltd. (Japan)
7. MTI Corporation (USA)
8. PAM-XIAMEN (China)
9. Beijing JiYa Semiconductor Material Co., Ltd. (China)
10. Umicore (Belgium), CMK Ltd. (Japan)
11. Semiconductor Wafer Inc. (Taiwan)
12. Crystacomm, Inc. (USA)
13. Yunnan Germanium Co., Ltd. (China)
14. DOWA Electronics Materials Co., Ltd. (Japan)

Recent Developments

• May 2024- EMCORE Corporation has completed a transaction to sell its Chips business and indium phosphide (InP) wafer fabrication operations. The sale was made to HieFo Corporation for a total purchase price of $2.92 million. 
• March 2024- Coherent Corp., a prominent supplier of compound semiconductors and advanced optical networking solutions, has recently achieved a significant milestone by successfully setting up the world's first 6-inch indium phosphide (InP) wafer production capability. This achievement was made possible at Coherent Corp.'s wafer fabrication facilities located in Sherman, Texas, and Järfälla, Sweden.

Segmentation

1. By Diameter
   1. 8 Mm Or 2"
   2. 2 Mm Or 3"
   3. 100 Mm Or 4” and Above
2. By End-User Industry
   1. Consumer Electronics
   2. Telecommunications
   3. Medical
   4. Other end-user industry applications