Sputtering Target Demand Remains Strong – Metal Supply Chain Stressed

Metal Pricing on the Rise Driven Further by Russia/Ukraine Turmoil

San Diego, CA, March 22, 2022:  TECHCET—the electronic materials advisory firm providing business and technology information— announced the Sputtering Target market for semiconductors increased 11.5% in 2021 (excluding precious metal targets) to reach US$764 million. The sputtering target market will further grow to 7% in 2022 to approximately US$820 million as demand continues to remain strong, though the global metal supply chains face many stresses.

Semiconductor target suppliers report strong demand continuing through 2022. Supply of high-purity copper, aluminum, and titanium is expected to remain tighter in 2022; however, target manufacturers with internal metal purification capacity will have more flexibility around high-purity metal supply constraints. When it comes to expanding capacity, target suppliers are encountering problems. For example, the delivery of machine tools, casting and rolling equipment needed for sputter target making have extended lead-times causing delays in expansion plans.

Rise in Metal Prices Pushing Further Upward: Metal pricing is now under new upward pressures given geopolitical issues surrounding Russia, the metals market response to the war, and increased energy costs. Titanium (Ti) sponge pricing is expected to increase as large aeronautical manufacturers refrain from sourcing of Ti sponge out of Russia. This will increase demand for sponge material from Japan and other nations, thus pushing prices higher. Additionally, spot market prices for some metals are shooting up, as investors speculate on availability of materials coming out of Russia. Finally, energy and transportation costs are on the rise, adding to the upward price trend. These issues, coupled with limited public announcements on new investments to expand target manufacturing capacity, are driving higher prices across the sputtering target supply chain.

In this environment, fab customers will likely seek out smaller suppliers to support demand growth, though such suppliers will require support and close partnerships with fabs to deliver targets required for leading-edge applications.

For more details on the Sputtering Target market segments and growth trajectory go to:
https://techcet.com/product/sputter-targets/

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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 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.