Semiconductor｜The new capacity release of silicon wafers will take until 2024!

Silicon wafers are the starting point of chips, and the global semiconductor wafer market will reach $14 billion in 2021, with a highly concentrated industry and a CR5 market share of nearly 90%. Silicon wafer is the largest amount of semiconductor materials, and more than 90% of semiconductor products are manufactured using silicon wafers.
With the rapid penetration of 5G, new energy, AIoT, the semiconductor industry in 2021 ushered in a super boom cycle, silicon wafer demand continues to be strong, the global semiconductor wafer shipments reached 14.2 billion square inches, an increase of 14% year-on-year, the market size of $ 14 billion. Semiconductor industry cyclical fluctuations lead to cyclical fluctuations in silicon wafer demand, silicon wafer industry mergers and acquisitions integration, industry competition pattern is highly concentrated, the top 5 manufacturers market share of nearly 90%.

Silicon wafer new capacity release to 2024, short-term supply and demand is expected to continue to be tight, long-term LTA to help stabilize the volume and price. Silicon wafer expansion cycle in more than 2 years, the global 12-inch wafers in 2020 mainly rely on the original plant for capacity expansion, the peak of new plant capacity release will be in 2024, 2022 and 2023 global 12-inch wafers will still be in short supply. This capacity expansion, downstream wafer fabs and wafer manufacturers to actively bind, through long-term contracts (Long-termAgreements) to ensure supply chain stability.