ALD/CVD Precursors Market Reaches $1.3B by 2023

Cobalt sources highly strategic through 2023

San Diego, CA, July 3, 2018: TECHCET—the advisory services firm providing electronic materials information— announced that strong growth in IC fabrication demand for atomic-layer deposition (ALD), chemical-vapor deposition (CVD), and spin-on dielectric (SOD) precursors should result in a combined global market size of US$1.3 billion by the year 2023. Specifically, metal precursors are expected to see a compound annual growth rate (CAGR) of 6.2 percent through 2023 starting from $460 million in revenues for this year, as detailed in the latest TECHCET Critical Materials Report (CMR). The market for dielectric materials is forecasted to be $465 million this year with CAGR of 8.2 percent through 2023, as detailed in the latest CMR.

“Plasma enhanced CVD and ALD processes drive increasing demand for silicon precursors, used in depositing the 32-72 layers of 3D-NAND chips and in self-aligned multiple patterning for advanced logic and memory chips,” explained Dr. Jonas Sundqvist, TECHCET senior analyst and author of the report. “We see a need for more advanced ALD/CVD precursor production in China, to support more leading-edge logic and memory fabs ramping production there.”

Cobalt (Co) metal is being used to encapsulate copper on-chip multi-level interconnects in the most advanced logic fabs for both foundries and IDMs. Intel is using full cobalt interconnects to replace some of the copper levels in it’s newest logic chips. The conservative demand forecast for cobalt metal in the form of ALD/CVD precursors for logic IC fabs is $25 million in 2018, with considerable growth to $70 million by 2023.

Due to the competitive demand for cobalt needed for the lithium batteries used in EVs, and due to conflict issues in the supply-chain, cobalt metal pricing is volatile and reliable forecasting is correspondingly difficult. To anticipate supply:demand imbalances, TECHCET tracks ALD and CVD precursor demands in competing high volume manufacturing (HVM) industries such as flat-panel display, photovoltaics, MEMS, and LED.

Suppliers covered in this report include: Adeka, Air Liquide, Azmax part of Azuma group, BASF, DNF “Dream New Future”, Dow Corning, Digital Specialty Chemicals (DSC), DowDuPont, Entegris, Epivalence, FujiFilm, Gelest, H.C. Starck, Kojundo Chemical Laboratory, Merck’s EMD Performance Materials, Nanmat Technology, Norquay Technology, Nova-Kem, Nanogen Solutions, Pegasus Chemicals, Praxair, Soulbrain, STREM, TCI Chemicals, Tri Chemical Laboratories, Umicore, UP Chemical, Versum Materials.

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