Industry: Chemicals and Materials
Published Date: November-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 189
Report ID: PMRREP34957
The U.S. semiconductor gases market is estimated to increase from US$ 1 Bn in 2024 to US$ 1.78 Bn by 2031. The market is projected to record a CAGR of 10.1% during the forecast period from 2024 to 2031.
Technological developments in gas recycling support the market's growth. Companies like SK Hynix and Samsung are developing new systems to recycle gases, such as neon and argon, to reduce environmental impact?. The industry further benefits from increased supply and infrastructure developments, contributing to market expansion.
A fraction of the chemical waste produced by semiconductor manufacturers is recycled. A few high-achieving businesses recycle more than 65% of particular waste types, such hydrogen fluoride. However, as these compounds are more often processed or released after use, recycling rates for other gases, such as ammonia, are substantially lower, frequently less than 1%.
Key Highlights of the Market
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Market Attributes |
Key Insights |
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U.S. Semiconductor Gases Market Size (2024E) |
US$ 1 Bn |
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Projected Market Value (2031F) |
US$ 1.78 Bn |
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U.S. Market Growth Rate (CAGR 2024 to 2031) |
10.1% |
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Historical Market Growth Rate (CAGR 2019 to 2023) |
8.6% |
The West U.S. is considered the dominant zone in the U.S. semiconductor gases market. This is owing to the strong presence of various semiconductor manufacturing hubs, particularly in California's Silicon Valley and neighboring states like Oregon and Arizona.
Companies like Intel, NVIDIA, and Applied Materials are headquartered in the West and have significant operations. The West is also home to several leading companies and research facilities due to the proximity of talent and innovation ecosystems. Silicon Valley serves as a global hub for semiconductor technology development, driving demand for high-purity gases used in fabrication processes like etching, deposition, and doping.
The West zone in the U.S. offers unique infrastructure and a well-established supply chain that supports the semiconductor industry. It includes suppliers of specialty gases like nitrogen trifluoride (NF3), silane (SiH4), and others.
Arizona is further emerging as a semiconductor manufacturing hotspot, with significant investments by companies like TSMC and Intel. These are further consolidating the West's leadership in the U.S. semiconductor gases market.
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Category |
Market Share in 2024 |
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Type- Electronic Special Gases |
68% |
Based on type, the market is divided into bulk gases and Electronic Special Gases (ESGs), where the ESGs category dominates the market. ESGs are predominantly favored due to the increasing demand for compact, rapid, and more potent electronic gadgets.
High-purity gases, categorized as ESGs, are crucial for the fabrication processes in semiconductor manufacturing, encompassing deposition, etching, and cleaning. Electronic special gases facilitate the fabrication of high-performance chips and integrated circuits necessary for these applications.
As semiconductor devices increase in complexity, there is a surging demand for specialized gases that can cater to the rigorous criteria of modern procedures. The utilization of bulk gases, including nitrogen, oxygen, argon, and helium, for cleaning, purging, and inerting operations is propelling the segment. Increasing development of new semiconductor production operations and enlargement of existing facilities also contribute to the need for bulk gases.
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Category |
Market Share in 2024 |
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Process- Chamber Cleaning |
42% |
Based on process, the market is divided into chamber cleaning, oxidation, depositions, etching and doping. Out of these, the chamber cleaning process segment dominates the market. The drive toward smaller, more tightly packed semiconductor devices is increasing the demand for sophisticated cleaning techniques to eliminate impurities and particles.
Chamber cleaning methods are essential for preserving the integrity and dependability of semiconductor production. These help in guaranteeing clean, contamination-free conditions, making them highly favored in manufacturing facilities.
Development of sophisticated device architectures, including FinFETs and 3D NAND memory, has accelerated the use of chamber-cleaning methods. These help eliminate residues and pollutants from intricate structures.
Increasing complexity of semiconductor production increases the demand for precise and regulated procedures, including oxidation, deposition, etching, and doping, to produce high-performance chips. The extensive use of semiconductor devices in sectors like automotive, healthcare, and aerospace drives demand for specialized techniques to customize semiconductor features.
Semiconductor gases are utilized in semiconductor fabrication and can be categorized into two primary segments, namely, electronic bulk gases and electronic special gases. A selection of these comprises industrial gases like argon, carbon dioxide, and helium; pure forms of hydrogen, nitrogen, and oxygen; and gases such as nitrogen fluoride. These are specifically synthesized for the electronics manufacturing industry.
Semiconductor chips are fundamental to modern electronic devices, facilitating innovations in communications, computers, healthcare, military systems, and transportation, among other fields. Emerging technologies like quantum computing, artificial intelligence, and enhanced wireless networks, including 5G, are facilitated by progresses in cutting-edge semiconductor technologies.
Semiconductor gases are essential in most processes of semiconductor fabrication. As semiconductor manufacturing advances, the need for high-purity gases utilized in producing highly complex semiconductor chips is anticipated to increase correspondingly. For example,
The U.S. semiconductor gases market demonstrated steady growth during the historical period from 2019 to 2023 at 8.6% CAGR. It was primarily driven by increased demand for high-purity gases essential in semiconductor fabrication processes such as etching, doping, and chemical vapor deposition.
The rapid adoption of unique technologies like 5G, artificial intelligence, and electric vehicles further fueled the need for complex semiconductor chips, leading to a surge in gas usage. Over the forecast period, the market is poised for accelerated growth due to surging technological developments in quantum computing, AI, and edge computing.
Domestic semiconductor production is anticipated to increase, supported by substantial government funding and efforts to reduce reliance on overseas suppliers. Environmental considerations, such as the shift toward gases with lower greenhouse gas emissions, drive innovation in gas formulations. Small-scale, specialized providers are likely to gain considerable market share by catering to the niche demands of high-purity and difficult-to-handle gases.
Rising Demand from Consumer Electronics Industry to Propel Sales
The swift technical progress in recent decades has made consumer electronics, including smartphones, tablets, and wearable devices, more accessible to the general populace. The trend is anticipated to persist during the forecast period, leading to increased adoption of various consumer electronic products. For instance,
According to recent studies, there has been an increasing trend in the use of smart networked household electronics. These often incorporate novel technologies, such as machine learning and artificial intelligence.
Semiconductor gases are essential in producing unique semiconductors that facilitate the development of consumer devices. Increasing demand in the consumer electronics sector is further anticipated to propel market expansion. For example,
Awareness of Sustainability and Environmental Legislation Fuels Demand
Environmental issues and laws are progressively impacting the U.S. semiconductor gases market. The industry is shifting toward gases such as fluorine, which have zero global warming potential, as substitutes for conventional greenhouse gases like sulfur hexafluoride and perfluorocarbons.
The transition is propelled by the necessity to adhere to rigorous emission regulations while preserving industrial efficacy. Corporations are investing in sustainable manufacturing processes, including reducing water usage and recycling ultrapure gases, which are essential in chip creation. The synchronization of environmental objectives with industrial progress promotes creating and implementing innovative gas solutions, accelerating market expansion.
Environmental Concerns and Stringent Regulations to Impede Growth
Several gases employed in semiconductor production are regarded as highly polluting and detrimental to both human health and the environment. It further includes fluorinated gases commonly utilized in manufacturing processes, such as etching, chemical vapor deposition, and chamber cleaning, among others.
The dangers linked to various gas types can be classified into fire, explosion, and contamination based on the risks they present. Organizations must adhere to regulatory compliance to safeguard employee health and safety as well as prevent accidental workplace damage. It results in supplementary expenses for the installation of apparatus, such as scrubbers and other facilities for gas emission treatment.
Manufacturing enterprises may consider utilizing alternative eco-friendly gases. Air Liquide recently launched a series of alternative etching gases with less global warming effects. Transitioning to alternate gases can be a capital-intensive endeavor.
Governments across the globe are implementing rigorous regulations to restrict the emission of harmful greenhouse gases during semiconductor manufacturing. This is mainly due to increasing environmental and public health concerns. New rules are anticipated to impact industries utilizing these semiconductor gases. The implementation of more stringent health and environmental standards is anticipated to impede market expansion.
Integration of AI and IoT in Semiconductor Manufacturing Creates Opportunities
The integration of Artificial Intelligence (AI) and the Internet of Things (IoT) into semiconductor manufacturing processes is reshaping the U.S. semiconductor gases market by enabling smarter, more efficient production systems. Such transformative technologies enhance the precision, scalability, and sustainability of semiconductor fabrication, creating opportunities for growth in the specialty gases sector.
AI-powered systems enable real-time gas consumption monitoring in semiconductor fabrication processes such as etching, deposition, and cleaning. IoT sensors embedded in gas delivery systems collect vast amounts of data, which are analyzed using machine learning algorithms to optimize gas flow, pressure, and purity.
Semiconductor gas suppliers that innovate with IoT-enabled delivery and monitoring solutions are well-positioned to capitalize on this trend. As the demand for AI-optimized semiconductors rises across industries, the reliance on high-quality gases in fabrication processes will increase, boosting market growth. For instance,
The U.S. semiconductor process gases industry is characterized by intense competition among key global and domestic players. Companies such as Linde PLC, Air Products and Chemicals, Inc., Praxair, Inc., Matheson Tri-Gas, Inc., and Air Liquide dominate the market. They are leveraging robust research and development capabilities as well as strategic partnerships with semiconductor manufacturers to gain a competitive edge.
Emerging competitors are exploring IoT-enabled monitoring systems and sustainable gas supply solutions to gain traction in the market. Companies are also extending their production capacities and optimizing supply chains to cater to the growing demand. It will likely be driven by developments in AI, 5G, and IoT technologies. Collaborative ventures and acquisitions are common strategies to consolidate their market presence.
Recent Industry Developments
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Zones Covered |
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Key Market Segments Covered |
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Key Companies Profiled in the Report |
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Report Coverage |
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Customization and Pricing |
Available upon request |
By Type
By Process
By Zone
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The market is set to be valued at around US$ 1.78 Bn in 2031.
Nvidia is the largest semiconductor company in the U.S.
Nitrogen and oxygen are the important gases in the semiconductor industry.
Apple Inc. is the most prominent buyer of semiconductors.
Helium and argon are the two main insert gases for use.
