Electronics & Semiconductor Materials in the Age of Smart Technology

 

The global electronics and semiconductor materials market is on a strong upward trajectory. Valued at US$ 58.0 billion in 2023, it’s expected to almost double, hitting US$ 119.8 billion by 2034, growing at a 6.1% CAGR. This growth is being fueled by advances in 5G technology, the rapid adoption of electric vehicles (EVs), and the explosion of IoT devices.

From the silicon wafers inside your smartphone to the gallium nitride chips in next-gen EV chargers, semiconductor materials are the invisible engine of the modern tech world. And their demand is only set to grow.

 

Why the Boom? The Forces Driving Demand

1. The 5G & IoT Wave
The rollout of 5G networks isn’t just about faster streaming — it’s about creating the infrastructure for billions of connected devices. By 2030, the world could have 41.1 billion IoT devices, from smartwatches to autonomous factory robots. Every single one of these devices requires semiconductor materials that can deliver higher efficiency, speed, and reliability.

2. EVs and Green Energy
Electric vehicles are pushing the need for advanced materials like silicon carbide (SiC) and gallium nitride (GaN), which handle high voltages with lower energy loss. Governments worldwide are encouraging this shift, with the U.S. CHIPS Act being a prime example, allocating US$ 52.7 billion to boost domestic semiconductor production.

3. Flexible Electronics
Wearables, foldable smartphones, and bendable displays are no longer science fiction. The rise of flexible electronics — powered by materials like molybdenum disulfide (MoS₂) — opens doors for medical devices, smart textiles, and even electronic skin that works while being stretched or bent.

 

Market Overview – The Building Blocks of the Digital Age

Semiconductor materials are the foundation of devices like integrated circuits (ICs), transistors, and diodes.

• Silicon dominates the industry, accounting for 53.1% of the market in 2023.
• Gallium arsenide (GaAs), germanium, and silicon carbide (SiC) serve niche high-performance needs, such as satellite communications, EV power systems, and high-frequency applications.

In terms of components, logic chips lead the market, holding 30.2% share in 2023. These chips are critical for AI processing, 5G base stations, and data center servers. Companies like Intel and TSMC are investing heavily to expand production and meet soaring demand.

 

Regional Hotspots – Where the Action Is

East Asia is the undisputed leader, contributing US$ 43.7 billion in 2023, thanks to powerhouses like Taiwan, South Korea, and China, which together account for 80% of global semiconductor foundry revenue. This region benefits from advanced manufacturing facilities, strong government support, and deep integration in the global supply chain.

North America is also a strong contender, driven by its tech giants — Intel, NVIDIA, and Qualcomm — and bolstered by major government funding for domestic production. Meanwhile, Southeast Asia (Singapore, Malaysia) is emerging as a critical supply chain hub.

 

Innovation Spotlight – Materials Shaping the Future

The push for better performance, smaller form factors, and higher energy efficiency is driving investment into new semiconductor materials:

• Silicon Carbide (SiC): Ideal for EV powertrains and renewable energy inverters due to its high thermal conductivity and efficiency.
• Gallium Nitride (GaN): Used in 5G base stations, EV chargers, and power adapters; offers higher switching speeds and energy savings.
• Graphene & Carbon Nanotubes: Promising ultra-fast, ultra-thin transistor designs.
• 2D Semiconductors (MoS₂): Enables flexible and wearable electronics with low power consumption.

 

Recent Industry Moves – Staying Ahead of the Curve

• BASF developed Ultramid Advanced N3U41 G6, a material designed for housing IGBT semiconductors in power electronics.
• Shin-Etsu Chemical expanded its QST substrate business for GaN devices, enabling high-quality, large-diameter GaN wafers.
• Air Products San Fu Co. invested US$ 900 million in ultra-high purity industrial gas facilities for advanced chip fabs in Taiwan.

These developments highlight the race to innovate in material science to keep pace with industry demands.

 

What’s Next? The Road to 2034

The electronics and semiconductor materials market isn’t just about more chips — it’s about smarter, greener, and more adaptable technologies. Key trends to watch:

1. Quantum & Neuromorphic Chips – Early-stage now, but could redefine computing efficiency.
2. Mass-Produced Flexible Electronics – From medical prosthetics to foldable laptops.
3. Localizing Supply Chains – Governments investing to reduce dependency on imports.
4. AI-Driven Manufacturing – Using AI to improve material quality and reduce defects.

Given the expected growth to US$ 119.8 billion by 2034, companies that innovate in material science will be the biggest winners.

 

Final Take – The Materials Behind the Machines

Every smartphone in your pocket, every EV on the road, every smart home device — they all rely on the same thing: semiconductor materials. As our demand for faster, smaller, and more energy-efficient devices grows, so will the need for better, more advanced materials.

From East Asia’s manufacturing dominance to North America’s innovation leadership, the global market is gearing up for a decade of transformation. For investors, engineers, and tech enthusiasts, this is a sector worth watching closely.

Because in the race for technological leadership, it’s not just about who builds the best chip — it’s about who builds it with the best materials.