Consumables market to double in next five years
The report covers substrate wafers; epitaxial wafers; precursors for MOCVD, MBE, and metallization; and ancillaries, including photoresists, etchants, and cleaners.
The continued rapid growth of this industry sector and the need for high-value-added chemicals and materials are forcing many companies to reevaluate their market strategies in this industry, according to Michael Corbett, director of Kline s Electronic Chemicals and Materials Practice. "This market is much more than a niche opportunity, and several companies are actively pursuing aggressive growth strategies here," he says.
"Many of the leading suppliers of chemicals and materials to the compound semiconductor industry, including Air Products, Honeywell, Matheson Tri-Gas, and Shipley, are also leading suppliers to the CMOS semiconductor industry," says Corbett. "These companies feel that they can take lessons learned in CMOS and apply them here to develop new business models to better meet customer needs."
Growth for compound semiconductors will be fueled by their continued use in mobile wireless communications, especially for power amplifiers in handsets such as cellular telephones, pagers, and global positioning systems. Superior performance in photonics, however, explains most of the excitement over the future of compound semiconductors.
Markets for laser diodes and high-brightness LEDs appear favorable in the short term as new products are developed for outdoor signage, optical storage, automobiles, and new lighting systems. In the medium term, the market for infrared lasers and detectors is likely to show significant growth from a base that has been severely depressed by overstocking and low demand.
In the long term, there is the tantalizing hope that LEDs will become commonplace as substitutes for indoor lighting. If this ever happens, sales could suddenly skyrocket, but the cost of making LEDs from compound semiconductors would have to come down significantly. Major lighting companies such as Philips are currently investing R&D resources to that end.
"The Global Outlook for Chemicals and Materials in Compound Semiconductors, 2002-2007" is the latest report in a series from Kline & Company focusing on advanced semiconductor precursor materials and fabrication processes.
