The electronic chemicals market comprises a wide range of chemicals that are used in various applications in the electronics industry. These chemicals are used for wafer processing, cleaning, etching or as gas precursors during CVD (chemical vapor deposition) or ALD (atomic layer deposition) processes. Semiconductors is a major end-use industry for electronic chemicals which are extensively utilized during the manufacturing of integrated circuits, memory chips, logic chips and other semiconductors. Electronic chemicals help in enhancing productivity and performance of chips through uniform and thin deposition during critical processing steps such as etching and cleaning.

The Global Electronic Chemicals Market is estimated to be valued at US$ 67.92 Bn in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2023 to 2030.

Key Takeaways

Key players operating in the electronic chemicals market are BASF SE, Air Products and Chemicals Inc., The Dow Chemical Company, Merck KGaA (known as EMD Performance, Materials in North America), SUMCO Corporation, JSR Corporation, Shin-Etsu Chemical Co., Ltd., Cabot, Microelectronics Corporation, Tokyo Ohka Kogyo Co., Ltd., Honeywell International Inc. The demand for electronic chemicals is growing significantly owing to the rising consumption of semiconductor chips in numerous electronic devices such as smartphones, laptops, tablets, gaming consoles and accessories. Additionally, increasing integration of semiconductors in automotive electronic control units and infotainment systems is also fueling the consumption of electronic chemicals. Moreover, growing miniaturization of semiconductors along with higher dependency on nanotechnology is driving the need for deposition of ultra-thin and uniform films during manufacturing which requires precision chemicals.

The electronic chemicals market is witnessing high growth opportunities in the Asia Pacific region led by China, Taiwan, South Korea and other developing Asian countries. This is attributed to large concentrations of foundries and fabless companies engaged in electronics and semiconductor manufacturing. Also, rising electronics exports from Asian countries is propelling the expansion of electronic chemicals market in the region.

The key growth driver for electronic chemicals market is increasing demand for semiconductors from various end-use industries. Semiconductors have become integral components in numerous electronic products due to growing digitization and proliferation of smart technologies in sectors like consumer electronics, automotive, industrial equipment etc. This widespread adoption of chips is significantly driving the consumption of electronic chemicals required in the manufacturing process of integrated circuits and other semiconductors. Electronic chemicals help in improving productivity, lowering defects and ensuring higher performance of chips, thereby augmenting their demand from the growing semiconductors industry.

Current geopolitical uncertainties across regions are impacting the growth of the Electronic Chemicals Market. Russia-Ukraine conflict and rising tensions between China and Taiwan has disrupted supply chains and increased raw material prices. Companies face challenges procuring rare earth elements and key precursors from conflict affected regions. They will need to diversify sourcing, develop alternate supply routes and localize production to mitigate supply risks. Transitioning to localized manufacturing across regions would help insulate from future geopolitical instabilities but requires huge capital investments. Collaboration with regional governments for incentives and policy support can help streamline the shift. Additionally, investment in development of alternative materials and processes can boost self-reliance. Overall, a balanced approach considering geopolitical stability, economic viability and environmental sustainability will be crucial for the long term growth of this market.

North America currently holds the largest share of the global Electronic Chemicals Market in terms of value, estimated at US$ XX Bn in 2024. This is attributed to presence of major end-use industries like semiconductor fabrication, consumer electronics and advance electronics in the region. Asia Pacific is another concentrated region and is expected to witness the fastest growth during the forecast period. Presence of large production bases of electronic goods manufacturers and growing electronics exports from China, South Korea, Taiwan and other Asian countries is driving high demand. Countries like India are also emerging as lucrative markets with government initiatives to boost electronics manufacturing.

The Electronic Chemicals Market in Europe remains significant backed by presence of leading electronics industry players. However, ongoing supply chain disruptions due to geopolitical tensions and economic uncertainties have impacted the regional growth trajectory recently. Japan also contributes sizable share as it is among the largest supplier of electronic components globally. Regions like Middle East and Africa and Latin America are projected to showcase high growth over the coming years supported by rising electronics consumption, industrialization and urbanization.