Consumables Industry Feeling a Swell in Demand

CMP Slurry and Pad Market Forecasted 13% Growth for 2021

San Diego, CA, January 6, 2022:  TECHCET—the electronic materials advisory firm — announced that CMP consumables demand is surging upward as device makers continue to push up production, and equipment suppliers scramble to build their backlog. “Shipments of CMP pads and slurries are at a 10-year high,” states Lita Shon-Roy, President of TECHCET.

The 2021 revenue forecast for the CMP slurry market is a TAM US$1.89 B growing 13% over 2020, with a 5-yr CAGR 8.8%; from TECHCET’s analysis of CMP Pads & Slurry markets. The strongest segments are Cobalt and PolySi slurry, while the Cu, Tungsten, and Oxide segments hold the largest revenue. Under normal market conditions prices are being driven down by competition and pressure from device makers persists in attempts to reduce costs. However, during this high growth period, we expect prices to hold steady or increase slightly. Slurries for advanced products will support higher prices because they are not as readily available.

The 2021 revenue forecast for the CMP pad market is a TAM of US$1.15B, also growing 13% year over year. A 6.2% CAGR is expected (2020 to 2025); lower growth than the slurry market due to increased pad life and price competition from China. The largest growth segments include Cobalt and PolySi pads, while oxide, tungsten, and Cu bulk pads make up the majority of the revenues. Due to the strength of the major shareholders like DuPont and Cabot in the pad market, pad prices will hold firm. However, if the new entrants in China are starting to gain position in their local market, which will lead to price competition in China. As for other process materials, shipping costs of CMP consumables have dramatically increased, which will be passed on to the customer.

Supply Chain Concerns:

  • Transportation delays, huge price increases for overseas shipments, warehousing challenges are all resulting in higher costs and quality issues for some slurries.
  • Equipment suppliers are seeing long-lead times on sub-components and some process materials which are slowing down the expansion plans of device makers.
  • Higher than expected materials demand is making the supply-chain tight and may ultimately result in shortages
  • Increasing dependencies on Asian suppliers of chemicals pose a greater risk of supply-interruption given ongoing logistics problems caused by persistent COVID19 and variants.

For more information about the CMP Slurry and Pad market, check out TECHCET’s report on CMP Slurry, Pads & Conditioners:
hhttps://techcet.com/product/cmp-slurry-and-pads-only/

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 info@cmcfabs.org, +1-480-332-8336, or go to www.techcet.com.