November 27, 2019
WELLESLEY, Mass., Nov 27, 2019–Sensor-based IoT innovation and the drive toward big data and artificial intelligence are two factors driving growth in the global semiconductor silicon wafer market, according to a report by BCC Research, “Global Semiconductor Silicon Wafer Market.”
The market expects to see a compound annual growth rate (CAGR) of 5.7% through 2023, when it could be worth $21.3 billion.
“Stability in the ASP (average selling price) will be largely due to price escalation in silicon wafers in 2018-2019,” writes analyst Shalini Ramamurthy. “Compound semiconductor wafers, on the other hand, will witness a steady decline in ASP. Silicon wafer manufacturing requires substantive investment and long gestation periods. Consequently, there are only a few wafer manufacturers large enough to influence pricing. The rest cater mainly to niche markets. Another pertinent observation is that the scale of operations in silicon wafers is substantially higher than in compound semiconductors. The ASP of silicon wafers is also much lower.
The Pattern of Price Fluctuations
For ASP movement, wafer manufacturers have historically resorted to a steady annual reduction in wafer prices followed by an occasional rise (once every few years) in response to rising input costs. This spike in prices is followed by a steady decline, yearly, which is expected as the input costs stabilize and manufacturers benefit from the depreciation of equipment. The spike in prices in 2018-2019 however, is expected to be sharp enough to keep prices on an even keel in 2023, compared to 2018 levels.
Editors/reporters requesting analyst interviews should contact Sarah Greenberg at email@example.com.
Global Semiconductor Silicon Wafer Market( SMC112A )
Data and analysis extracted from this press release must be accompanied by a statement identifying BCC Research LLC as the source and publisher. For media inquiries, email firstname.lastname@example.org or visit www.bccresearch.com/media to request access to our library of market research.