Within the semiconductor value chain, silicon materials serve not only as the fundamental building blocks of wafer manufacturing, but also play a decisive role in key processes such as etching, directly impacting process stability and yield performance. According to SHINDEV’s research team, as downstream semiconductor applications continue to expand, demand for silicon wafers and silicon components is rising rapidly, driving a corresponding increase in upstream silicon material consumption. As a result, the semiconductor silicon materials market is entering a sustained growth phase.
Among these segments, etching-grade silicon materials—key raw materials for etching equipment consumables—are currently benefiting from a triple resonance of rising outsourcing ratios, increasing etching steps per wafer, and accelerating localization, creating significant long-term growth potential.
From an end-market perspective, the global semiconductor industry remains on a structural growth trajectory. According to the World Semiconductor Trade Statistics (WSTS), global semiconductor chip revenue reached USD 646 billion in 2022, representing a year-on-year increase of 16.2%. Driven by expanding downstream demand, the global semiconductor market is expected to reach USD 874.2 billion by 2027, with a compound annual growth rate (CAGR) of nearly 8% from 2023 to 2027.
On the materials side, silicon wafers represent the highest-value semiconductor material, accounting for approximately 36.4% of total wafer manufacturing material costs. In 2022, global silicon wafer shipments reached approximately 14.5 billion square inches, up 8.5% year-on-year, while the global wafer market reached USD 13.8 billion, growing 9.5% YoY. From 2016 to 2022, the market achieved a CAGR of 11.5%, underscoring the strong growth momentum of upstream silicon materials.
As 3D integrated circuits enhance density through narrower line widths and increased layer stacking, etching processes have become significantly more complex. Process scaling requires deeper etching profiles and tighter process windows, elevating the strategic importance of etching equipment.
More importantly, node scaling dramatically increases the number of etching steps per wafer:
~20 etching steps at 65nm
~40 etching steps at 28nm
Over 100 etching steps at 10nm and below
This sharp increase directly amplifies the consumption and replacement frequency of silicon components such as silicon electrodes and rings, thereby accelerating demand for etching-grade silicon materials.
Silicon materials are the most widely used materials in the semiconductor industry, accounting for approximately 31.2% of total material usage. They are broadly categorized into:
Wafer-grade silicon materials, used in silicon wafer manufacturing
Etching-grade silicon materials, used to fabricate silicon components for etching equipment
Driven by robust downstream demand, the global semiconductor silicon materials market reached approximately USD 12.6 billion in 2021, growing 9.4% year-on-year, with a five-year CAGR of around 8%. More than 90% of global chips and sensors are manufactured on silicon-based materials, underscoring silicon’s irreplaceable role in the industry.
The quality of silicon components directly affects etching efficiency and process stability. Silicon electrodes, for example, gradually erode during oxide etching processes and must be replaced once thickness thresholds are reached, making them core consumables in wafer fabrication.
As the primary material for silicon electrodes, etching-grade single-crystal silicon must meet stringent requirements in purity, defect control, and resistivity uniformity, including:
Purity levels of 10–11N, with diameters ranging from 14–24 inches
High resistivity uniformity, typically 60–95Ω
Minimal surface defects, as micro-voids can significantly degrade etching performance
With continued node scaling, global silicon component manufacturers are raising specifications across multiple dimensions, reinforcing the need for upstream material suppliers to continuously enhance quality and process control.
Globally, silicon component production is highly concentrated in Japan and South Korea, accounting for over 80% of market share. Leading manufacturers maintain an internal supply rate of only ~40%, leaving approximately 60% dependent on external procurement. As demand grows and cost pressures increase, outsourcing ratios are expected to rise further—opening a meaningful growth window for cost-competitive and reliable domestic material suppliers.
In summary, the expansion of etching equipment markets, increasing etching intensity driven by advanced nodes, and rising outsourcing ratios among leading silicon component manufacturers are collectively driving an upcycle in etching-grade silicon materials. As performance gaps between domestic and overseas products continue to narrow, future competition will increasingly center on purity, consistency, cost efficiency, and supply stability.
For domestic silicon material companies, sustained improvements in process control and yield performance will be critical to capturing localization opportunities and advancing toward higher-value segments of the global semiconductor supply chain.
