The global semiconductor materials market grew 14% year-on-year to US$42 billion in 2007, according to the report of SEMI (Semiconductor Equipment and Materials International). In 2006, the growth rate was only 3% year-on-year.

"Heightened demand in addition to the tight supply for various gases, silicon, and the widespread adoption of advanced packaging technologies are resulting in very strong revenue growth for semiconductor materials suppliers," said Dan Tracy, senior director of Industry Research and Statistics at SEMI.

By category, the sectors of the wafer fabrication (the first half of the process) materials and packaging (the second half of the process) materials grew by 17% to US$25 billion and by 9% to US$17 billion, respectively. By region, Japan topped the list with US$9,307 million followed by Taiwan (US$7,859 million) and "rest of world" (US$6,712 million), the same order as in 2006.

China showed the highest year-on-year growth rate (37%), followed by Korea (25.5%) and Taiwan (16.5%). SEMI predicts the semiconductor materials market will grow more than 11% year-on-year in 2008.

Table provided by SEMI