Chemical Mechanical Polishing Market

Market Overview

The global chemical mechanical polishing market size had a share of USD 5.83 billion in 2022 and is valued at USD 6.73 billion in 2023. It is expected to grow to USD 9.34 billion by 2031 at a CAGR of 7.3% during the forecast period (2023–2031). 

The global market for chemical mechanical polishing or CMP is anticipated to advance steadily in the coming decade. It is owing to growing technological inventions in fabrication and semiconductor processes to enhance the performance of semiconductor products. Manufacturers' increasing investment in semiconductor wafer fabrication materials drives the market's growth.

Chemical mechanical polishing has set a standard in the manufacturing process practiced by various semiconductor manufacturers to create integrated circuits (IC) and memory disks. The increasing adoption of these components in IoT, automotive, and 5G markets may also drive the demand for CMP machinery and services during the forecast period. The chemical mechanical polishing process has played a significantly vital role in making transistors and other interconnect devices for building a new generation of chips. Such factors are expected to push the market to grow further in the forecast period.

Market Dynamics

Global Chemical Mechanical Polishing Market Drivers

Growth of Miniature Semiconductor Devices

Advancements in computing, networking and telecom, and consumer electronics have created the demand for small and robust semiconductor devices; this made a growth scope for the global chemical polishing market. The need for small and powerful semiconductor devices results in a heightened demand for materials to develop high-performance components.

Another factor driving the market for chemical mechanical polishing is the need for highly integrated, high-speed applications for aerospace and certain consumer electronics. It raises demand for

improved electrical performance to minimize noise effects, designing the end products. The role of IC packaging has become an essential factor in developing electronic systems, driving the market of CMP. 

The demand for compact electronic devices is seen to grow in every economic sector forcing the semiconductor IC manufacturers to expand their research and development process in order to reduce the size and increase the performance of ICs, leading to the emergence of micro-electro-mechanical systems (MEMS) and 3D chip packaging. These factors propel the demand in the market for chemical mechanical polishing.

Growth in the Usage of MEMS and NEMS

The expeditious development in modern society has witnessed the increased interaction between humans and machines. Such interaction created enormous demands for intelligent human-machine interfaces. Around the big data and supersensitive sensing, MEMS/NEMS sensors using machine learning methods directly promotes the development and manufacture of the next-generation intelligence sensing system. 

In fabricating micro-electro-mechanical systems (MEMS), chemical mechanical polishing is found extensively. Therefore, with increased demand for MEMS and NEMS Sensors in society, the growth scope of chemical mechanical polishing rises significantly. 

Continuous efforts are being made to fabricate miniaturizing MEMS down to NEMS in several applications for an even smaller footprint, higher frequency operation, lower power consumption, and better sensor sensitivity. Hence, pushing the global chemical mechanical polishing market further.

Global Chemical Mechanical Polishing Market Restraints

Complex Manufacturing Process

The process of chemical mechanical polishing is mainly complex. Several chemical and mechanical phenomena like surface kinetics, electrochemical interfaces, contact mechanics, stress mechanics, and hydrodynamics are involved in chemical mechanical polishing. Estimating the material removal rate in the CMP process with sufficient accuracy is essential for achieving a uniform surface finish.

CMP-induced defects due to the contaminants observed on the wafer surfaces cause device failure leading to severe yield loss. It has become a significant concern in the modern semiconductor manufacturing process creating restraint in the chemical mechanical polishing market.

Global Chemical Mechanical Polishing Market Opportunity

The growing semiconductor market will create further opportunities for the chemical mechanical polishing market.

The semiconductor market is generating new dielectric or barrier films which are often necessary to develop a new generation of slurries, pads, and post-CMP cleans to accommodate the rising demand. 

It can be noticed that the demand for data centers and mobile terminals had up-swinged due to the commercial application of fifth-generation mobile communications systems or 5G. Furthermore, technological innovations in artificial intelligence (AI) and CASE (connected, autonomous, shared and service, and electric) in the automobile industry are also growing in the past few decades. As the semiconductor market is essential for these technologies, the market is expected to achieve high growth, leading to robust demand for chemical mechanical polishing.

The latest generation of CMP results in ever-shorter timelines, and having more throughput per tool will further push the market growth.

Regional Analysis

The countries to dominate the market share of chemical mechanical polishing are Taiwan and China.

Taiwan is expected to generate around USD 2.33 billion at a CAGR of 6.2% by 2031. The amplifying semiconductor manufacturing in the country is primarily driving the adoption of CMP in the country. Taiwan-based TSMC is one of the world's largest contract chipmakers with around 50% share in the global market, hence playing a significant role in creating demand for CMP slurries. The increased up-gradation in the telecom industry due to 5G and in the automotive industry is also fuelling the company's product demand, therefore, developing the scope for the market vendors.

Taiwan invests heavily in 5G with its strategy for 5G rollout. Since the semiconductor production sector mainly drives this initiative, it is expected to keep up with the demands of its design customers for different types of digital signal processors for 5G and 5G's high-frequency radio modem circuits. And it was henceforth thrusting up the demands for chemical mechanical polishing.

Next to Taiwan, China is expected to generate the most considerable revenue with USD 2.7 billion at a CAGR of 6%.

The country’s government regulations favor the semiconductor market resulting in increased demand for CMP in the region. One such instance was found when the Chinese government raised around USD 23 to 30 billion to pay for the second phase of its National IC Investment Fund. Along with that, growth across several semiconductor segments is expected to power the expansion of the chemical mechanical polishing market in the country.

Segmental Analysis

The global chemical mechanical polishing market share is segmented based on type, application, and geography.

There are two market segments based on type: CMP Equipment and CMP Consumable.

On the Basis of Type

CMP Consumable is expected to have the largest share with USD 5.67 billion with a CAGR of 7% during 2031. 

CMP consumable plays a crucial role in the manufacture of advanced semiconductor devices. It helps in enabling the manufacture of smaller, faster, and more complex devices for the end customers. The global market for CMP slurry is expected to grow significantly over the forecast period attributable to an increase in the technological advancements in the fabrication process of semiconductors, aiming to enhance the performance of semiconductors.

Moreover, following the enormous demand for the CMP process, vendors and manufacturers are ensuing various strategies, such as new product developments and mergers and acquisitions, to address the increasing competition in the market.

It is expected to promote growth in the CMP consumables market during the forecast period.

The CMP equipment market is expected to generate a revenue share of USD 4.2 billion in the forecast period with a CAGR of 8%. 

The growing electronic industry and the propensity towards miniaturization are expected to influence wafer fabrication plants and wafer processing. A prominent share of wafer plants is expected to be 300mm, followed by 200mm. Industry experts believe that the number of IC semiconductor fabrication plants processing 300 mm wafers globally is expected to grow to 138 by 2023, from 92 in 2015. As a result of such demand, the CMP equipment vendors are expected to focus on the segment more, generating more market share. The evident evolution and growth of equipment platforms have enabled CMP processes to the high volume of manufacturing demand in a cleanroom environment. Automated process control for CMP techniques improves performance, stability, and predictive process results. Hence, making the market flourish.

The market is segmented into integrated circuits, compound Semiconductors, MEMS/NEMS, and other applications. 

On the Basis of Applications

The integrated circuits or ICs will dominate the market with the largest share of USD 5.02 billion at a CAGR of 7%. 

In accordance with the present market scenario, almost all electronic devices, including laptops, smartphones, computers, etc., make use of silicon ICs and other wafer-dependent packages. This gives rise to the demand for polishing machinery in the market. Advancing technical innovations in ICs are expected to make way for various types of equipment, hence driving polishing equipment. However, Integrated Device Technology Inc., a wholly-owned subsidiary of Renesas Electronics Corporation, introduced its first integrated power management IC (PMIC). It was developed for small outline and un-buffered DDR5-based dual in-line memory modules, and it brought significant changes in the range of notebooks, desktops, and embedded computing platforms. Similar advances are expected to drive the IC market further.

The other applications in the market are expected to have a share of USD 3.8 billion at a CAGR of 7% by 2031. The scope for additional applications includes optics and hard drives used in computers.

Impact of covid-19

The onset of covid-19 across the nation resulted in a decline in the market for chemical mechanical polishing.

Amidst the spread of coronavirus, major economies witnessed a downfall in their GDP and operations. The lockdown imposed by the government and regulatory authorities across the globe disrupted the operations and activities of the players in the market. It inflicted a severe threat to humankind and society, disrupting the economies around the world. The government declared strict lockdowns to slow down the rapid spread of the disease, productions were ceased, all work environments closed, public interactions were restricted, and temporary suspension of manufacturing and trading activities across the globe. 

The pandemic caused a decline in the growth of automotive, electronics, and industrial sector activities which influenced the demand for chemical mechanical polishing in a negative manner. Due to the lockdowns and restrictions, semiconductor events/shows had to be canceled and shut down the electronics, industrial, and automotive sectors, which again affected the supply chains of CMP raw materials. Further, the lockdowns imposed by countries across the world resulted in the shutdown of manufacturing facilities, combined with strict restrictions over social distancing norms which impacted the overall operations of semiconductor manufacturing facilities. Hence, the global chemical mechanical polishing market witnessed a severe decline during the covid-19 era.

Market Recovery Timeline and Recovery

Nevertheless, approbatory government policies and initiatives, including reduction and ease in the interest rates, tax exemptions, and several financial packages along with automation in manufacturing, growing demand for medical devices during the period of a health crisis, and recovery of the manufacturing in China resulted in the market recovery of chemical mechanical polishing. 

Associations like the Semiconductor Industry Association (SIA) forwarded their suggestions to government officials to specify the semiconductor industry operations as an essential infrastructure or business activity and allow for the continuity in the functions of the industry, promoting growth in the semiconductor market. It pushed the need for chemical mechanical polishing to get back on track. 

Furthermore, the demand for electronic products in the healthcare industry rose, driven by the need to treat patients affected by the pandemic; this pushed the market growth further.

Recent Developments

• 2022, Applied Materials Inc. introduced their innovation that help customers continue 2D scaling with EUV a 3D gate-all-around transistor.
• April 2022, Showa Denko Materials Co. Ltd introduced machine learning operations into AI-based prediction systems to accelerate materials development.
• April 2022, Fujifilm Corporation to expand its BioProcess Innovation centre.
• 2022, Fujifilm Corporation installed synapse 7x Cardiology PACS in Emory healthcare facilities.