Are There New Opportunities for Tier 1 and Tier 2 CVD/ ALD Precursor Suppliers?

Precursors global market is expected to be US$1.7B by 2025.

San Diego, CA, June 29, 2021:  TECHCET—the electronic materials advisory firm providing business and technology information— announced announced that there are several new opportunities in the wake of the Pandemic and unresolved Global trade issues for both Tier 1 and Tier 2 suppliers.

  • Global fab expansions drive demand and R&D investments
  • Continued M&A by Tier 1 suppliers reduce the number of local Tier 2 suppliers, opening up opportunities for start-up activities and smaller entities.
  • Continued device design shrink requires the introduction of higher conductivity metals compatible with contact, local interconnects, and BEOL – Mo, Ru, and Ir.
  • Continued focus on new lithography and patterning technologies opens new application for dry resist and new hard mask materials to support EUV.
  • Multi Patterning development also continues, in search of lower temperature deposition materials.

CVD/ALD Metal and High-k Precursors totaled US$624 million in 2020 and is expected to grow 12% in 2021 to US$710M, as highlighted in TECHCET’s Critical Materials Reports™ on ALD/ High K Metal Precursors and Dielectric Precursors. The 5-year CAGR (2020-2025) is estimated to be 8.0%. The key drivers for growth for various segments are:

  • High-κ precursors – DRAM (90 nm and below)
  • HKMG: Logic (45 nm and below),
  • Tungsten (W): 3DNAND

The highest revenue growth will occur in metal precursors that include:

  • Cobalt in Logic
  • Ruthenium in Logic, if implemented in high volume manufacturing
  • Hafnium in Memory (DRAM and emerging NVM)
  • Lanthanum for HKMG

Advanced Dielectric Precursors totaled US$549 M for 2020 and is expected to grow 14% in 2021 to US$624M. The 5-year CAGR (2020-2025) is estimated to be 6.1%. The highest revenue growth will occur in dielectric precursors that support multi-patterning and newer applications areas including EUV, as follows:

  • DIPAS/BDEAS precursors: Logic and DRAM patterning (SADP, SAQP)
  • TSA: for 3DNAND and potentially also for EUV dry resist (SiN PEALD) in competition with a new precursor based on diiodosilane

This year, STREM was acquired by Ascensus Specialties. M&A activity of large companies is often focused on growing current product lines much to the neglect of R&D activities. Many large companies focus on acquisition to bring in new technology. TECHCET has seen an increase in consulting requests on the ALD/CVD market from potential new entrants.

Critical Materials Reports™ and Market Briefings: https://techcet.com/product/high-kald-precursors/

Critical Materials Reports™ and Market Briefings: https://techcet.com/product/dielectric-precursors/

ABOUT TECHCET:  TECHCET CA LLC is an advisory services firm focused on process materials supply-chains, electronic materials business, and materials market analysis for the semiconductor, display, solar/PV, and LED industries. Since 2000, the company has been responsible for producing the Critical Material Reports™, covering silicon wafers, semiconductor gases, wet chemicals, CMP consumables, Photoresists, and ALD/CVD Precursors. The Critical Materials Council (CMC) of semiconductor fabricators is a business service offered by TECHCET, and includes materials supplier Associate Members. For additional information about reports, market briefings, CMC membership, or custom consulting please contact [email protected], +1-480-332-8336, or go to www.techcet.com or www.cmcfabs.org.