Most semiconductor materials, including special gases, are expected to see a demand decline of more than 10% this year.

SEMI Korea held SMC Korea 2023 at Suwon Convention Center on the 17th.

Mark Thirsk, Linx Consulting Managing Partner, who presented market trends at the event, predicted that the semiconductor materials market will face significant challenges this year.

Mark said that in terms of material demand outlook, most products are expected to experience high levels of demand decline this year.

The 2023 materials outlook is for CMP to decrease 12% year-on-year to USD 2.642 billion, Thin Film to decrease 19% year-on-year to USD 3.712 billion, Patterning Materials to decrease 17% year-on-year to USD 5.159 billion, Specialty Gases to decrease 10% year-on-year to USD 3.824 billion, and Wet Chemicals to decrease 12% year-on-year to USD 2.967 billion, all of which are expected to decline.

The basis for this outlook is that three factors, including the economic crisis, technological difficulty, and global political situation, will affect the semiconductor market this year.Analyzed by door.

The economy is expected to see a decline in GDP growth this year compared to last year, and difficulties are expected to continue due to decreased consumer power and investment sentiment.

In particular, inflation, economic recession, and increased inventory are expected to make things difficult for the semiconductor industry, and 2023 will be a period of stagnation for the semiconductor industry.

This situation is also affecting semiconductor material companies, and it is expected that there will be no new orders for semiconductor material companies until the third quarter of 2023.

However, the semiconductor operating rate is expected to rise from 73% this year to 78% in 2024 and to the mid-80% in 2025, and demand for materials is expected to increase with this year as the turning point.

Mark predicted that with regard to the impact of political situations such as the US-China conflict and the war between Russia and Ukraine on the materials market, China is unable to exert much influence in the materials sector due to limitations in its technological capabilities, and the number and supply of materials tend to depend on specific regions such as Korea and Taiwan, making localization of materials actually difficult.

It also predicted that mergers and acquisitions of materials-related companies would be active.