Global silicon wafer shortage will hardly relieve before 2024: TECHCET

Consulting agency TECHCET recently analyzed that the size of the silicon wafer market, including SOI wafers, will increase by more than 10% in 2022 to US$15.5 billion, a year-on-year increase of 14.8%. This will be the first time in more than a decade for the silicon wafer market. Two consecutive years of double-digit growth.

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Moreover, TECHCET pointed out that the current supply of silicon wafers continues to be tight, and the total production capacity is roughly equivalent to the expected demand during the year.

However, due to the different specifications of different customers’ equipment requirements, there is a partial shortage, and the supplier’s existing production line optimization is not enough to meet the continuous demand. 

Furthermore, TECHCET said that at present, major wafer suppliers such as Shin-Etsu Semiconductor, SUMCO, GlobalWafers, Siltronic, and SK Siltron have stated that they will build new production capacity, but the completion of factory construction and commissioning is expected to be around 2024.

Before that, the tight supply and demand situation is difficult to ease. With further upward pressure on prices, new Chinese competitors such as Xinsheng Semiconductor are expected to become an alternative source for downstream customers to purchase 12-inch wafers.

(via)