The global semiconductor materials market decreased 1.5 percent in 2015 compared to 2014 while worldwide semiconductor revenues decreased 0.2 percent. The impact of exchange rate changes, coupled with lower overall semiconductor unit growth, contributed to the year-over-year revenue decline.

According to the SEMI Material Market Data Subscription, Total wafer fabrication materials and packaging materials were $24.1 billion and $19.3 billion, respectively. Comparable revenues for these segments in 2014 were $24.2 billion for wafer fabrication materials and $19.8 billion for packaging materials. The wafer fabrication materials segment decreased 1 percent year-over-year, while the packaging materials segment decreased 2 percent. However, if bonding wire were excluded from the packaging materials segment, the segment would have remained flat relative to last year. The continuing transition to copper-based bonding wire from gold is negatively impacting overall packaging materials revenues. The depreciation of the Yen further impacted the total materials market due to the importance of materials suppliers based in Japan.

For the sixth consecutive year, Taiwan was the largest consumer of semiconductor materials due to its large foundry and advanced packaging base, totaling $9.4 billion. Korea rose in the rankings to claim the second spot during the same time. Annual revenue growth was the strongest in the Korean and Chinese markets. The materials market in North America and Europe experienced nominal growth of 1 percent, while the materials markets in Taiwan, Rest of World and Japan contracted. (The ROW region is defined as Singapore, Malaysia, Philippines, other areas of Southeast Asia and smaller global markets.)

2014 and 2015 Regional Semiconductor Materials Markets (US$ Billions)

Source: SEMI, April 2016