November 18, 2005 – The markets for materials, tools, and equipment supporting development of nanoelectronics will more than double to $4.23 billion by 2010, led by development activities in five key areas of the electronics industry, including semiconductors and MEMS/NEMS, according to a new report from SEMI.

Nano materials will enjoy 39% compound annual growth, topping $1.13 billion, while nano tools and equipment are seen growing 20% CAGR to $4.22 billion. Nano materials currently make up about 10% of the market, but will double to 20% marketshare ($866 million) by 2010, led by growth in carbon nanotubes and nanoimprint and extreme-ultraviolet lithography.

SEMI points to development activities going on in five electronics industry sectors: semiconductors, displays, hard disk storage, optoelectronics/sensors, and micro/nanoelectromechanical systems (MEMS/NEMS). In displays, for example, carbon nanotube backlights and field emission displays, as well as various polymer and transmission films utilizing nanomaterials, will be commercialized, and will aid the emergence of new manufacturing techniques including ink-jet and screen-printing technologies. NEMS-based memory devices incorporating nanowires and new forms of semiconductor memory also are expected to reach commercialization, noted SEMI.

Among other findings in the report:

— Industries focused on technology hurdles (e.g., semiconductors) typically are more conservative in adopting new technologies, while industries concerned with cost challenges (displays and hard disk storage) are more willing to try new approaches.

— Large R&D investment requirements, market timing, technical requirements, and tough support and service expectations will present high barriers to startups seeking entry in the nanomaterials and tools markets. SEMI thinks their best bet is to license what they develop, or align with key suppliers, to gain access into the marketplace.

— Bigger opportunities for nanomaterials suppliers actually lie outside the nanoelectronics industry: construction, automotive, and industrial chemicals need significant volumes of nanomaterials and don’t require such stringent technical requirements.

— A huge opportunity is beginning to emerge with the integration of nanoelectronics and biology and medicine, expected to last for the next 15-20 years and developing a wide range of new markets.