From 2006 to 2021, according to Semi, 2021 List of semiconductor materials were volatile and generally positive. After 2017, they benefited from demand driven by consumer electronics, 5G, automotive electronics and IoT, the industry is on an upward trajectory, 2021 to a record $64.3 bn, and is expected to reach $69.8 bn in 2022, up 8.6 per cent year-on-year and forecast to 2023 more than $70bn.

From 2006 to 2021, the market of 2021 materials increased steadily from US $21.7 billion to US $40.4 billion, accounting for 62.8% from 58.3% The 2021 Chinese List of semiconductor materials market is the largest in the world, with $26.64 bn, or 41.4 per cent, of the total List of semiconductor materials market.

China is the world's largest semiconductor market, accounting for about 1/3. With China's rapid economic development, the semiconductor market in China is growing rapidly, driven by consumer electronics such as mobile phones, pcs and wearable devices, as well as emerging sectors such as new energy, the Internet of things and big data.

First, look at the size of the industry.

The List of semiconductor materials is the Semiconductor industry industry upstream, the cornerstone of the Semiconductor industry with semiconductor equipment.

Since the 21st century, the rise of new applications such as 5G, artificial intelligence, and autonomous driving have put forward higher requirements for chip performance, and at the same time, it has promoted the continuous innovation of semiconductor manufacturing processes and new materials, domestic and foreign wafer factories have stepped up research and development of new semiconductor processes. TSMC started mass production of the 5-nm process in 2020, and achieved trial production of the 3-NM process by the end of the 2021 year. It is expected to start mass production in 2022.

In addition, TSMC said it had overcome the technical difficulties at the 2-NM process 2021, and expected to start 2023 trial production at risk and gradually realize mass production of the 2024. As chip technology has improved, wafer makers have become more List of semiconductor materials.

The List of semiconductor materials runs through the entire semiconductor manufacturing process.

(1) the expansion of the downstream wafer factories drives demand and promotes the growth of the List of semiconductor materials enterprises

Upstream price increases + supply shortages, List of semiconductor materials price increases

List of semiconductor materials companies are raising prices because of rising raw material prices upstream. Shinetsu chemical has increased the price of all its silicon products by 10% to 20% since April 2022. The price increase is due to the rising cost of the main raw material, silicon metal.

Russia-ukraine conflict affects the supply of rare gas, rare gas prices rise. The supply of our country's rare gas is not a problem, but the price will still fluctuate with the international market.

3. The policy encourages and supports, and the home-made substitution logic is clear

The overall localization rate of semiconductor manufacturing materials is only about 10% , especially in the high-end field almost entirely dependent on imports, the market space is broad.

As silicon content in downstream electronic devices increases, semiconductor demand is growing rapidly. The List of semiconductor materials market has grown rapidly as a result of semiconductor process upgrades and aggressive production expansion.

Global 2021 List of semiconductor materials market revenues reached $64.3 bn, according to Semi, surpassing the previous peak of $55.5 bn in 2020 and up 15.9 per cent year-on-year.

Revenue of wafer manufacturing materials and packaging materials totaled US $40.4 billion and US $23.9 billion respectively, up 15.5% and 16.5% year-on-year. In addition, 2021 domestic List of semiconductor materials sales reached US $11.93 billion, up 22% year-on-year, a much faster growth rate than other countries and regions.

As the division of Labour has become more refined, the Semiconductor industry of market-oriented development has become more apparent. From the point of view of production, the manufacturing base is gradually close to the demand market to reduce transportation costs, and from the point of view of product development, manufacturers can respond to user demand in time, accelerate technology development and product iteration.

As the largest semiconductor consumer market in the world, our country has a strong market competitiveness in the international market after years of development, there is still a big gap with the world's leading manufacturers in integrated circuit design and manufacturing, particularly semiconductor equipment and materials. Sia data shows that in 2020, domestic manufacturers accounted for 38% , 16% , 13% , 2% of the global market share of testing, design, wafer manufacturing, materials and equipment, respectively, home-grown alternatives to List of semiconductor materials and equipment are becoming increasingly important.