China Fab Materials Trade Facing Uncertainty

Tariffs and Supply-Chains discussed at SEMICON China

San Diego, CA, April 3, 2019:

TECHCET—the electronic materials advisory services firm providing business and technology information— announced that uncertainties in global trade have created both rising and falling fortunes for China’s semiconductor fabrication materials industry. China’s exports are slowing compared to 4Q2018, especially for companies supplying to Japan, Korea, and Taiwan. However, material companies supplying into Europe have seen healthy bookings this quarter. In addition, companies providing materials consumed in power devices report that business remains positive. TECHCET forecasts growth of ~3 percent this year in the global market for semiconductor manufacturing materials to reach a total of just over US$50 billion.

Dan Tracy

Dr. Dan P. Tracy, Director of Market Research & Sr. Analyst of TECHCET, recently provided an update on the global semiconductor manufacturing materials market at the 2019 SEMICON China conference. He discussed the materials driving steady demand increases at 4.3 percent compound annual growth rate (CAGR) through the year 2023, as shown in The Figure. There is an expectation for business to improve in general in 2H2019 as supply:demand returns to balance in the current memory-cycle.

SEMICON China is now the largest semiconductor equipment and materials trade show in the world. The show was packed overflowing into multiple tent areas because there was not enough room in the regular expo halls. Equipment and materials companies from all over the world were represented, with a strong showing of Chinese suppliers.

Local environmental regulations on mining and refining continue to be enforced with more stringent curtailment of those with no government affiliation. Larger companies with more capital to invest in regulation compliance are still in operation. Chinese companies well positioned to reap the benefits of vertically integrated supply-chain include 718/Peric as the largest ammonia and specialty-gas maker with direct investment in fluorspar mines, and Xingfa Group the largest phosphoric acid maker whose majority owner also owns phosphor rock mines. Dynamics of the global supply-chain will be discussed at the 4th annual CMC Conference, happening April 25-26 in Saratoga Springs, NY. Details of fab materials forecasts are found in TECHCET’s extensive Critical Materials Reports™.

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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 SEMATECH 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 unit of 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