29 June 2011

Electronic gases market recovers to 2008 levels

After a 14% decline to $2.37bn in 2009, the electronic gases market grew 16% year-on-year to $2.74bn in 2010 (exceeding the forecast 11%), according to ‘Gases for Semiconductor Device Processing 2011, A Techcet Group Critical Materials Report’. The outlook is for 11% growth overall in 2011, with the electronic specialty gases segment leading the way with 12% growth to $1.9bn. The combined electronic gases market is expected to exceed $4.1bn by 2015, forecasts market research firm Techcet Group LLC.

Sales of specialty gases correlate very closely with silicon wafer consumption, and rode the rollercoaster down and back up with the semiconductor business through the 2009 recession. Bulk gases do not track as closely with wafer starts because the gas volumes attributed to other electronic applications are large in comparison to IC bulk gas.

Driven by consumer spending in lieu of vacations and travel, manufacturing of thin-film transistor (TFT) displays boosted bulk gas consumption in 2010 by 55% over 2009, leading overall gas revenues back to 2008 levels. Vigorous growth in bulk gases is expected to continue with projections of annual market expansions of 10% for ICs and TFTs, 8.5% for LEDs and 24% for photovoltaics over the next several years.

The electronic gas market share leadership position is now a three-way contest between Air Products, Taiyo Nippon Sanso and Air Liquide (each with just under a quarter of the market), followed by Praxair, BOC/Linde, OCI and others.

The report discusses the global issues that are affecting the market dynamics and supply chain stability for He, NF3, ion implant and other dopant sources, and specialty gas compounds affected by the global supply chain impacts on rare-earth metals which are critical to electronics manufacturing. The outlook for future gas usage — as shaped by environmental concerns, legislative changes, and geopolitical issues — are also discussed.

Tags: Electronic gases

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