The COVID-19 pandemic has affected various industries, including the silicon wafer industry. But, the wafer industry has quickly bounced back from the severe setbacks. As per the research report by Technavio, the semiconductor silicon wafer market size is predicted to observe an immense growth of USD $4.14B from 2020 to 2025. The same is reflected in Emergen Research market reports, where the global silicon wafer market size is expected to reach USD 16.01 Billion in 2028. The evolution momentum of the market is taking off to expedite at a CAGR of 6.73% (refer below image).
This is primarily due to the massive demand for various types of electronic device customers, even though renewable energy, automobile, and other sectors also have a considerable share. Silicon wafers are the fundamental element for manufacturing semiconductors and are important elements of essentially all electronic products. The essential developmental aspects for the semiconductor silicon wafer market are the growing demand for advanced and compact electronics, increase in fabs, smartphones, PCs, demand for Internet of Things (IoT), and personalized smart devices. In regard, the ever-rising market for compact consumer electronics resulted in the need for manufacturers to focus on developing an outstanding grade of miniature electronic ICs. A substantial fraction of consumer electronic products use integrated circuits and semiconductor appliances generated from silicon materials in the prevailing market position. However, silicon stands out to monopolize the fundamental applications in the consumer electronics demand.
The Consumer Technology Association (CTA) research estimates that retail sales profits for the tech industry in the U.S. are expected to have achieved a value of $487 billion in 2021, which is 7.5% higher than the previous year. This is mainly due to the continued work from home by companies. Emphasizing the same, Gary Shapiro, President of CTA, stated that “the pandemic strengthened consumers’ relationship with technology forever. From working to learning, staying connected with loved ones, and taking care of our health, tech played a crucial role in improving our lives. Tech has proved time and again that innovation makes our country resilient in the face of crises.” Statista research estimates that consumer electronics yielded US$1,032 billion globally in 2019, and by 2025 the projection is expected to surge to US$1,160 billion. Another research by Global Market Insights Inc. approximates that consumer electronics market revenue will surpass USD 1.5 Trillion by 2027.
To meet the surging demand and counter the top silicon manufacturing in the Chinese market, the Senate in 2021 ratified the U.S. Innovation and Competition Act with a $250 billion budget, primarily to compete with China’s technological aspirations. The ordinance gives a $52 billion budget to the semiconductor research, design, and manufacturing initiatives. This is further expected to boost the silicon wafer industry and empower consumer electronics industry demand.