26 April 2016

Epi deposition market growing at 11.54% CAGR to 2020, driven by demand for high-performance devices

The global epitaxy deposition market will rise at a compound annual growth rate (CAGR) of 11.54% during 2016-2020, forecasts a market research by Technavio.

Semiconductor companies are moving to the fabless model, mainly to reduce overhead expenses related to the operation and maintenance of foundries. Most are concentrating on the design and development of their solutions and are subcontracting their fabrication and other foundry-related activities to specialized companies. Due to this, the ratio between foundries and fabless companies is 1:11 in the global semiconductor market. Companies are also considering mergers and acquisitions (M&A) to increase their production facilities and market shares.

According to the report 'Global Epitaxy Deposition Market 2016-2020', the ever-increasing features and applications of smart devices such as smartphones and notebooks have created the need for high-performance semiconductor devices. Due to this, over the last decade semiconductor manufacturers have increased the use of epitaxial deposition on wafers.  

In 2015, the epitaxy deposition market was dominated by the foundry segment (almost 63% market share). By geographic region, the Asia-Pacific (APAC) comprised more than 71% of the epi deposition market, driven by the presence of several foundries such as Samsung and TSMC. APAC is also the largest consumer of semiconductor devices, contributing over half of total semiconductor industry revenue. During the 2016-2020 forecast period, demand for electronic devices including laptops, tablets, gaming consoles, smartphones in APAC countries will continue to rise. In turn, demand will grow from original equipment manufacturers for semiconductor devices (logic, analog, optoelectronics and sensors).

Key players in the epi deposition market include Applied Materials Inc, ASM International, Hitachi Kokusai Electric Inc, Lam Research Corp, and Tokyo Electron Ltd. Other prominent vendors covered by the report are Aixtron, Canon Anelva Corp, IQE, and Veeco Instruments. The epitaxy deposition market is open and has considerable potential for new vendors, reckons the report. However, market entry is difficult due to the high initial investment, adjustment required by constant technological advances, and the cyclical nature of the semiconductor industry. Also, due to technology advances and mergers & acquisitions, the competitive environment is expected to increase.

Tags: Epitaxy

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