Silicon EPI Wafer Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Wafer Size (6 Inch, 8 Inch, 12 Inch, and Others), Application (LED, Power Semiconductor, and MEMS-based Device), End User (Consumer Electronics, Automotive, Healthcare, Aer

Silicon EPI Wafer Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Wafer Size (6 Inch, 8 Inch, 12 Inch, and Others), Application (LED, Power Semiconductor, and MEMS-based Device), End User (Consumer Electronics, Automotive, Healthcare, Aerospace and Defense, and Others), and Type (Heteroepitaxy and Homoepitaxy)

The Silicon EPI Wafer Market size is expected to grow from US$ 3,008.57 million in 2022 to US$ 4,997.32 million by 2028; it is estimated to grow at a CAGR of 8.8% from 2022 to 2028.

Gallium nitride (GaN), a wide bandgap semiconductor, supports the functioning of devices at greater temperatures and voltages than silicon-based devices. The greater dielectric breakdown of GaN also makes it possible to build smaller devices with lower resistance. Lower resistance leads to smaller devices with less capacitance (on). Epitaxial GaN wafers, characterized by high efficiency and high-power output, are a base material used in power and radio frequency (RF) devices. They are used in defense radars, electric car power converters, 5G base stations, and quick chargers for IT devices. For instance, IVWorks, South Korea, makes gallium nitride (GaN) epitaxial wafers, a crucial component of DC power devices and 5G communication devices, by using deep learning-based artificial intelligence (AI) epitaxy technology, further attracting a US$ 6.7 million Series B investment.

Owing to their high electron mobility, current density, and breakdown voltage, GaN can be used to create high-efficiency, high-output power devices that operate at a high frequency. It is smaller, quicker, more efficient, and produces more power than Si, SiC, and GaAs materials. GaN epitaxial growth is necessary on a heterogeneous substrate since GaN has not yet been adequately developed in free-standing wafer technology, in contrast to Si SiC GaAs (Si or SiC). Although Si can affordably handle wafers with enormous diameters, a technique to manage stress and defect density is required because of the huge lattice mismatch and thermal expansion coefficient difference from GaN. Continuous advancements in AI-based GaN wafers provide a lucrative opportunity for the growth of the silicon EPI wafer market.

COVID-19 Impact on Silicon EPI Wafer Market Size

Europe is the manufacturing hub of many major automobile manufacturers, and the operation of many crucial systems and modern automobiles depend on small microchips. The automobile industries depend heavily on semiconductor technology, including artificial intelligence-based techniques, which negatively impacted the silicon EPI market growth as semiconductor vendors and manufacturers were dealing with a severe scarcity of microchips due to the COVID-19 pandemic. During the COVID-19 pandemic, demand for consumer electronics such as computers, mobile phones, and other devices increased dramatically, outpacing supply and creating a severe shortage of semiconductors.

Furthermore, national constraints and the lockdowns brought on by the COVID-19 pandemic in the microchip manufacturing facilities in the European region continue to impair supply chains. Thus, the increasing number of based devices in the region and the growing adoption of consumer electronics products due to the work-from-home model contribute towards the growth of silicon EPI wafer market.

In the silicon EPI wafer market study, Asia Pacific is segmented into India, China, Japan, Australia, and the Rest of Asia Pacific. Most of the world's major chip design businesses now rely on manufacturers in this region, with South Korea and Taiwan playing dominant roles. TSMC and Samsung are the two most powerful manufacturers in the semiconductor industry, controlling over 70% of the whole manufacturing market; in recent years, they have also become exclusive providers of chips based on cutting-edge technologies. Semiconductor manufacturing and related research are capital-intensive domains requiring billions of dollars of investments. Taiwanese semiconductor chips account for more than half of the global total for manufacturing purposes. Taiwan is continuously reinventing its processes to keep its dominance in the future, presenting the most sophisticated 3 nm technology, which will be implemented in the second half of 2022. Also the US is Taiwan's second-largest commercial partner, accounting for 13.2% of overall commerce and receiving almost one-third of Taiwan's information and communications technology (ICT) exports. Not only are TSMC and other Taiwanese foundry players important suppliers to many American businesses, but without them, many American chipmakers' business models would be hard to sustain. Considering all these factors, Taiwan has prominent shares in the silicon EPI wafer market as silicon wafer is the raw material used by the semiconductor industry.

Furthermore, in China, most investments were in numerous renewable energy projects due to expected reductions in subsidies, while solar was the favored option in Japan and India. Asia Pacific has been one of the most popular destinations for new projects, and Western European countries support most of the investment initiatives. Thus, the development of the renewable energy industry is contributing towards silicon EPI wafer market growth.

The companies profiled in the silicon EPI wafer market study are Applied Materials, Inc.; II-VI Incorporated; Shin-Etsu Chemical Co., Ltd.; SUMCO Corporation; Wafer World Inc.; Siltronic AG; Nichia Corporation; Global Wafers Japan Co., Ltd.; EpiGaN nv (Soitec Belgium N.V.); and SK Siltron Co., Ltd. The market players in the silicon EPI wafer market are following both organic and inorganic growth strategies to sustain the competitive edge. For instance, in September 2021, Applied Materials launched two products that will enable global leading silicon carbide chipmakers to transition from 150mm to 200 mm wafer production. Such initiatives by the key players will contribute to the silicon EPI wafer market growth during the forecast period.

The overall silicon EPI wafer market analysis has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the silicon EPI wafer market. The process also serves the purpose of obtaining an overview and forecast of the silicon EPI wafer market size with respect to all market segments. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data and gain more analytical insights. The participants typically involved in the silicon EPI wafer market report include VPs, business development managers, market intelligence managers, national sales managers, and external consultants—such as valuation experts, research analysts, and key opinion leaders—specializing in the silicon EPI wafer market.

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