TECHCET Projects Positive Forecast on Electronic Gases Despite Trade Tensions
San Diego, CA, April 22, 2025: TECHCET — the electronic materials advisory firm providing semiconductor materials supply chain information — forecasts a 5% revenue growth for electronic gases in 2025, bringing total revenue to $6.34 billion. This growth is driven by the recovery in semiconductor demand, particularly from specialty gases (+5%). Bulk gases are expected to grow by 4%. The 5-year shipment and revenue CAGR is projected at 5%, signaling continuing growth through 2029, despite uncertainties around pricing and volume, as showcased in TECHCET’s Critical Materials Report™ on Electronic Gases.
In 2024, electronic gases revenue grew by 0.4%, with specialty gases increasing by 0.7% and bulk gases declining slightly by 0.2%. This aligns with the wafer starts projected by the advisory firm, supporting semiconductor manufacturing across segments that did not experience uniform recovery. That recovery had been slower than anticipated, with AI related wafer starts (accounting for a relatively small portion of overall wafer starts) and geopolitical challenges as large contributing factors. However, the latest earnings from 4 of the leading electronic gas suppliers (Linde, Air Liquide, Nippon Sanso Holdings, and Merck/EMD) indicate net growth, expected to continue this year.
The stance of the new US administration is further exacerbating geopolitical tensions and perhaps hastening plans for supply chain localization. There have also been some concerns that the evolving regulatory mood may challenge certain efforts toward environmental protection. Some funding awarded through CHIPS Act and similar government-sponsored programs around the world has been delayed, and there is some uncertainty whether the US administration will retract (or maybe even expand) some funding. Issues surrounding tariffs and the difficulties associated with cultivating more local sources of supply are expected to increase costs, which may push up specialty gas revenues this year.
For more details on Electronic Gases market segments and growth trajectory, including profiles on AUECC, Avantor, BASF, Chemtrade, EMD/Merck, and more, go to: https://techcet.com/product/gases/
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ABOUT: TECHCET CA LLC is an advisory services firm expert in market analysis and business development of electronic markets and supply-chains for the semiconductor, display, solar, and LED markets. TECHCET offers consulting, reports, and the Critical Materials Council and DSS subscription services. For additional information, please email us, call +1-480-382-8336, or go to www.techcet.com