TECHCET Predicts Semiconductor ALD/CVD Precursor Market Outlook Highlights Growth
San Diego, CA, June 18, 2025: TECHCET — the electronic materials advisory firm providing semiconductor materials supply chain information— forecasts the global semiconductor precursor market will maintain solid growth through 2025 and beyond, with a projected 10.4% CAGR in revenues through 2029. This trend is supported by advancements in sub-3nm logic, and the increasing demand for AI, HPC, and regional fab expansions in the US, EU, and Asia technologies according to TECHCET’s 2025 Critical Materials Report™ on ALD/CVD Precursors.
In 2024, the market rebounded to $1.7 billion following a downturn in 2023, driven by activity in 2nm/3nm logic, GAA-FET adoption, and a partial recovery in NAND and DRAM wafer starts. The broader semiconductor materials market reached $66.3 billion, and innovations in dry resist, molybdenum-based metallization, and low-k dielectrics are expected to contribute to further growth over the next five years.
The semiconductor precursor market is growing due to scaling in sub-3nm logic, the adoption of gate-all-around (GAA) transistors, and increasing DRAM and 3DNAND complexity. However, ongoing trade tensions, such as US tariffs on Chinese tungsten and China’s December 2024 germanium export ban, are creating uncertainty and material shortages. Heavy reliance on imports for critical materials like cobalt, tungsten, and rare earths from high-risk regions (e.g., China, Congo) exposes the supply chain to geopolitical instability and trade policy shifts. Regionalization efforts are underway in the US, EU, and Japan to reduce dependency on Chinese and other high-risk sources.
“Sustainability is becoming a procurement priority, pushing suppliers to improve EHS compliance and invest in cleaner chemistries and more recycling,” stated Lita Shon-Roy, CEO/President of TECHCET. Challenges that need to be overcome include high-temperature processing and hazardous waste handling which present barriers to recycling efficiency, especially where radioactive or corrosive byproducts are involved.
For more details on TECHCET Critical Materials Reports™ on ALD/CVD Precursors, associated suppliers such as Air Liquide, Adeka, EMD / Merck, Entegris, DuPont, Umicore, Nata and others, or to request a sample report, visit https://techcet.com/product-category/ald-cvd-precursors/
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About TECHCET: TECHCET CA LLC is an advisory services firm expert in materials markets and supply chain analysis as applied to electronic applications including the semiconductor, display, solar, and LED industries. For additional information, please email us, call +1-480-332-8336, or go to www.techcet.com