In 2022, Asia Pacific held a significant electronic chemicals market share. Electronics and semiconductor manufacturing in Asia Pacific has been a major driver for global trade. Asia Pacific is a global hub for the production and export of technical consumer goods—including consumer electronics such as laptops, desktops, cellphones, radio sets, sound systems, and televisions—and other essential electronic parts and domestic appliances. The increase in the number of on-fleet vehicles in Asian countries such as China, India, and South Korea is propelling the demand for printed circuit boards (PCBs) and semiconductors.
In contrast, India, South Korea, and Taiwan are considered attractive business destinations for electronics companies and auto manufacturers looking for medium-skilled manufacturing infrastructure and low labor costs. According to the International Organization of Motor Vehicle Manufacturers report, motor vehicle production in Asia Pacific was estimated to be ~46.73 million units in 2021. As battery technology continues to improve, Asia Pacific is expected to become a key hub for electric vehicle production. China has emerged as one of the largest electric vehicle markets globally, supported by government policies promoting electric vehicles. Further, the emerging applications in renewable energy are expected to contribute to the growing electronic chemicals market size.
Rising Demand for Flat-Panel Displays Drives Electronic Chemicals Market Growth
Flat-panel displays such as liquid crystal displays, organic light-emitting diode displays, and microLED displays require sophisticated manufacturing processes that rely on electronic chemicals. These chemicals are used for cleaning, patterning, coating, encapsulation, and surface treatment steps to fabricate various layers and components of flat-panel displays. Cleaning agents such as solvents, surfactants, and etchants are used to remove contaminants, particles, and residues from glass substrates and semiconductor layers. The increasing adoption of smartphones, tablets, televisions, digital signage, and automotive displays has fueled the demand for flat-panel displays. The demand for high-definition television and computer monitors with large screen sizes and high resolution is also rising.
The automotive industry is integrating flat-panel displays into vehicle dashboards, infotainment systems, instrument clusters, and rear-seat entertainment systems. Automotive displays provide navigation information and connectivity features that cater to consumer preferences for in-car technology. Thus, the rising demand for flat-panel displays contributes to the growing electronic chemicals market size. Additionally, the electronic chemicals market trends include the adoption of nanotechnology in electronic devices.
Electronic Chemicals Market: Segmental Overview
The global electronic chemicals market is segmented on the basis of product type and end use. Based on product type, the market is segmented into CMP slurries, photoresist chemicals, wet chemicals, acids, and others. The CMP slurries segment accounts for a significant electronic chemicals market share. Chemical mechanical planarization (CMP) slurries are fundamental components within the electronic industry’s manufacturing processes, particularly in semiconductor fabrication. Their primary function is to achieve precise and uniform polishing of semiconductor wafers, ensuring optimal surface flatness, smoothness, and layer thickness uniformity. CMP slurries are complex formulations comprising abrasive particles, typically silica or alumina, suspended in a chemical solution. These slurries are meticulously engineered to balance mechanical abrasion with chemical interactions, facilitating the removal of unwanted materials from the wafer surface. The chemical constituents of CMP slurries often include acids, bases, surfactants, and complexing agents, which serve multiple purposes, such as controlling the pH level, enhancing particle dispersion, and promoting selective material removal.
Photoresist chemicals are essential for photolithography processes, which involve transferring patterns onto semiconductor substrates to create intricate circuitry. Photoresist chemicals consist of light-sensitive polymers dissolved in solvents, and they come in two types: positive and negative photoresists. Positive photoresists become soluble upon exposure to light, allowing the developer solution to selectively remove the exposed areas, leaving behind the desired pattern. Conversely, negative photoresists become insoluble upon exposure to light, allowing the developer solution to dissolve the unexposed areas, leaving the pattern intact. Wet chemicals encompass a wide range of solutions and formulations tailored to specific applications, including cleaning, etching, stripping, and surface modification processes. One of the primary uses of wet chemicals is wafer cleaning, where they remove contaminants, residues, and particles from semiconductor surfaces to ensure optimal device performance and reliability. Cleaning solutions may include acids, bases, organic solvents, surfactants, and chelating agents, carefully formulated to target specific contaminants while minimizing damage to sensitive materials. Based on end use, the market is segmented into semiconductors, flat panel displays, printed circuit boards, photovoltaics, and others. Electronic chemicals play a vital role in the semiconductor industry, as their precise application is important for achieving optimal performance and reliability of semiconductor devices. Throughout the fabrication process, a diverse range of chemicals is employed to manipulate the properties of semiconductor materials, primarily silicon. Acids such as hydrochloric acid (HCl) and nitric acid (HNO3) are utilized for cleaning and etching silicon wafers, ensuring the removal of impurities and uniform surface preparation. Dopants such as boron, phosphorus, and arsenic are introduced into the silicon lattice to modify its electrical conductivity, which is crucial for controlling the behavior of transistors and other electronic components.
During photolithography, photoresists, developers, and etchants are used to define intricate patterns on semiconductor surfaces, enabling the precise fabrication of transistor structures and interconnections at nanoscale resolutions. Additionally, flat panel displays, such as televisions, computer monitors, or smartphones, rely on a complex combination of materials and technologies, with electronic chemicals playing a crucial role at each step of the manufacturing process. One key application of electronic chemicals in flat panel display production is in the fabrication of thin-film transistor (TFT) arrays, which serve as pixel-switching components. Acids such as hydrochloric acid (HCl) and sulfuric acid (H2SO4) are used for cleaning and etching the glass substrates, ensuring optimal adhesion and uniformity for subsequent layers. Photoresists, developers, and etchants are then employed during photolithography processes to define the intricate patterns of TFTs and interconnections with micron-level precision. Additionally, dopants such as boron and phosphorus are introduced into the semiconductor layers to tailor the electrical properties of the TFTs, enabling efficient switching and driving of individual pixels. Encapsulation materials such as epoxy resins and polyimides are applied to protect the delicate TFT structures from environmental factors and mechanical stress, ensuring long-term reliability.
Electronic Chemicals Market: Competitive Landscape
Fujifilm Holding Corp, Solvay SA, BASF SE, Linde Plc, Honeywell International Inc, Songwon Industrial Co Ltd, Hitachi High-Tech Corp, RBP Chemical Technology Inc, PVS Chemical Solutions Inc, and Esprix Technologies LP are among the prominent players profiled in the electronic chemicals market report. In addition, several other players have been studied and analyzed during the study to get a holistic view of the market and its ecosystem. The electronic chemicals market report also includes company positioning and concentration to evaluate the performance of competitors/players in the market.