NEW YORK, USA, Nov. 6, 2024 (Globe Newswire) — Compound semiconductors are formed when two or more elements, either separate or from the same group on the periodic table, come together and combine. It has experienced tremendous growth over the past few years due to the increasing demand for applications in electronic and mobile devices. Compound semiconductor manufacturing processes utilize a variety of deposition techniques, including chemical vapor deposition and atomic layer deposition.
Compound semiconductors are expected to be in high demand in the future due to their enhanced high temperature resistance, increased frequency, widened bandgap, and faster operation. Demand for compound semiconductors is expected to remain high in the future. These characteristics of compound semiconductors will be a factor driving future demand. Many providers are focusing on developing new technologies for compound semiconductor products and producing competitively priced, application-specific products.
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market trends
Growing demand from semiconductor industry drives global market
According to Straits Research, “The global compound semiconductor materials market size was valued at USD 35.96 billion in 2024 and is projected to reach USD 60.75 billion by 2033, from USD 38.11 billion in 2025. and will grow at a CAGR of 6% during the forecast period” (2025-2033). The global semiconductor industry is expanding due to the demand for electronic devices. Semiconductors are a powerhouse of innovation and progress, and semiconductor packaging and surface mount technology procedures are a large part of mainstream electronics. Thin film deposition, prototyping, selective etching, and modification are part of the manufacturing steps of microelectronic devices. By changing parameters and patterns, it is possible to generate hundreds of circuits containing hundreds of millions of functional components on a single wafer.
Physical vapor deposition processes, such as sputtering and vapor deposition, apply durable, wear-resistant coatings onto semiconductors before attaching them to end-user devices. The global expansion of the semiconductor industry is expected to be driven by several key trends. One such trend is the increasing use of artificial intelligence (AI) in various industries, which is creating growth opportunities for semiconductor manufacturers and suppliers.
Potential for GaN applications in 5G infrastructure creates significant opportunities
5G wireless networks must utilize base stations that combine technologies that provide efficiency, performance, and cost-effectiveness. GAN solutions are absolutely necessary to provide these characteristics to customers. GAN-on-SIC offers 5G base stations with significantly improved both efficiency and performance compared to lateral diffused metal oxide semiconductor (LDMOS). Additionally, GAN-on-SIC has improved thermal conductivity, superior durability and reliability, and higher efficiency at high frequencies, delivering comparable performance in small MIMO arrays. GAN is expected to enhance the power amplifiers of all network transmission cells (micro, macro, pico, femtohm/home routers). As a result, GAN could have a significant impact on subsequent generation 5G deployments.
regional analysis
Asia Pacific is the most important shareholder in the global compound semiconductor materials market and is estimated to exhibit a CAGR of 4.6% during the forecast period. Consumer electronics markets in Asia-Pacific countries, including China, India, Japan, Indonesia, and Malaysia, enjoy high penetration rates due to technologically advanced products. Rapid urbanization and increasing disposable income are expected to further expand the users of home appliances and expand the scope of application of compound semiconductor materials.
Additionally, technological developments such as the miniaturization of smartphones, televisions, laptops, and air conditioners are driving the industry. Initiatives by the government of India, the largest producer of home appliances, are also boosting the market. Demand for compound semiconductor materials for major home appliances such as refrigerators, washing machines, and air conditioners is expected to continue to grow. The region’s manufacturing industry is influenced by low labor costs, land availability, and high domestic demand, which attract foreign manufacturers to invest in manufacturing.
North America is expected to exhibit a CAGR of 3.3% during the forecast period. Expansion of end-use industries in the United States, Canada, and Mexico is driving demand for compound semiconductor materials in the region. Moving closer to this region, foreign manufacturers will need to expand their target markets and facilitate capacity expansion and acquisitions. For example, Canada’s Solantro Semiconductor was acquired by Huada Semiconductor, a Chinese market leader in industrial semiconductor solutions. Advanced integrated circuits are developed by Solantro Semiconductor using silicon and other compound semiconductor materials. The purpose of the acquisition was to increase investment in the company, benefit from the technology available in the region, and expand its presence in North America.
Additionally, production capacity is increasing in the region. II-VI EpiWorks, located in Champaign, Illinois, has opened an additional facility at its manufacturing center of excellence. We produce epitaxial wafer products for compound semiconductor manufacturing. The goal of this expansion is to quadruple production.
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Main highlights
Based on product, the global compound semiconductor materials market is divided into Group IV-IV, Group III-V, and Group II-VI. Group III-V segment dominates the global market and is projected to exhibit a CAGR of 4.0% during the forecast period. Based on application, the global compound semiconductor materials market is divided into electronics, consumer goods, aerospace and defense, telecommunications, and others. Telecommunications segment contributes the most to the market and is estimated to exhibit a CAGR of 4.6% during the forecast period. Asia Pacific is the most important shareholder in the global compound semiconductor materials market and is estimated to exhibit a CAGR of 4.6% during the forecast period. Forecast period.
competitive player
Sumitomo Electric Industries, Ltd. JX Nippon Mining Co., Ltd. Furukawa Co., Ltd. Shin-Etsu Chemical Co., Ltd. Showa Denko Co., Ltd.
Recent trends
May 2022 – JX Nippon Mining and Metals USA Inc. constructs a new facility in Arizona, USA, with financial support from the Japan Bank for International Cooperation. April 2022 – Shin-Etsu Chemical Co., Ltd. announces the development of a new thermal interface.With advances in high-voltage gadget technology, we have developed the TC-BGI series of silicone rubber sheets for electric vehicle parts.
segmentation
Product Groups IV-IV Groups III-V Groups II-VI By Application Electronics & Consumer Goods Aerospace & Defense Telecommunications Other By Region North America Europe Asia Pacific Middle East & Africa Latin America
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