Substrates Market Size, Share & Segmentation, By Raw Material (GaSb, InSb, Bulk GaN, Ga2O3, Bulk AlN, Single crystal diamond, Engineered substrates and templates), By Application (Computing, Consumer, Industrial/Medical, Communication, Automotive, Military/Aerospace), By Region, and Global Forecast for 2023-2030

Substrates Market Report Scope & Overview:

Substrates Market size was valued at USD 64.1 Million in 2022 and is expected to grow to USD 422.98 Million by 2030 and grow at a CAGR of 26.6% over the forecast period of 2023-2030.

The electronics and photonics segments of the global semiconductor substrate market are based on application. Over the projection period, the electronics segment is anticipated to hold the greatest market share. The semiconductor substrate market is a vibrant, multifaceted industry that caters to numerous electronics industry segments. These markets cover a wide range of technologies and applications, each with particular needs in terms of semiconductor substrates. Mobile phones, tablets, computers, gaming consoles, and wearable technology are included in this section. High-performance semiconductor substrates supporting quick processing, energy efficiency, and small designs are required for consumer devices. These devices' substrates must be capable of supporting intricate integrated circuits and offering effective heat dissipation. driving the segment's growth during the forecasted period.

Yole looks into the condition of manufactured substrates and templates as well as developing semiconductor substrates including GaSb, InSb, bulk GaN, GaO, and diamond. It also examines a number of potential applications, including those involving laser diodes, LEDs, sensors, and detectors, RF, and photonics. Silicon-based technologies continue to rule the power electronics (PE) market, which is driven by a number of applications including electric and hybrid electric vehicles (EV/HEV), renewable energy, and power supply. Nevertheless, after a protracted development process, the wide bandgap materials SiC and GaN (Lateral GaN HEMT on Si or Sapphire) have entered the PE market and are anticipated to account for more than 25.2% of the market by 2030. Nevertheless, Yole anticipates growth in the next five years for bulk GaN for vertical GaN devices and tailored substrates Nevertheless, Yole anticipates growth in the next five years for bulk GaN for vertical GaN devices and tailored substrates (SmartSiC from Soitec, SiCkrest from SICOXS, and QST from Qromis).

KEY DRIVERS: 

• Increasing spending on 5G infrastructure

Increasing the investment in 5G infrastructure. Semiconductor substrates capable of supporting the high-frequency and high-speed characteristics of these networks are necessary for the deployment of 5G networks. Base station, antenna, and network equipment substrates must have good thermal performance, minimal signal loss, and compatibility with cutting-edge modulation methods. The most current information updates shows that 157 million more global 5G connections were created between Q4 2022 and Qt 2023, with the total number of 5G connections. This shows the enormous breadth and importance of 5G technology and translates to an additional billion connections added yearly.

• Increasing IoT (Internet of Things) usage

RESTRAIN:

• An intricate manufacturing processes

Intricate deposition, patterning, and etching methods are frequently used in the manufacture of semiconductor substrates. The complexity of manufacturing can cause problems with yield, production, and cost. Advanced semiconductor substrate development necessitates knowledge of materials science, nanotechnology, and semiconductor production. The technical know-how necessary to overcome these obstacles may prevent certain companies from entering the market some businesses.

OPPORTUNITY:

• Expanding Cooperation

The market expansion is anticipated to be fuelled by the leading industry players growing cooperation. A formal deal between Infineon Technologies AG and GaN Systems Inc. was announced in March 2023, according to which Infineon would pay $830 million to acquire GaN Systems. The development of GaN-based power conversion technology is led globally by GaN Systems. By gaining access to GaN Systems' unrivaled R&D capabilities, application know-how, and customer project pipeline, their GaN vision will advance significantly more quickly. Infineon's position in Power Systems will also improve as the merger because it will be able to master crucial power technologies accelerating market penetration in the process.

• Rising wireless Technologies

CHALLENGES:

• Technological Advancement

Technology development for greater material quality, higher yields, and reduced manufacturing costs is the core emphasis of emerging substrate operations. Of course, the market's adoption and demand, which establishes the proper specifications for the various substrates, must support this push.

Soft robots with FHE capabilities have also found use in the industry 4.0 era. Robotic exoskeletons made to help people who have lost their movement move and lift goods (such crates, cartons, and boxes) to lessen fatigue Early applications of soft robotics include workplace injury.  Given that wireless technology is crucial for data transfer and system control (IT), one of the most important applications for FHE is in communication. The phrase "Internet of Things" (loT) describes a developing concept that includes a future viewpoint on daily living. It enables machine-to-machine communication by connecting a wide range of intelligent devices (integrated with sensors and information transmitters), which calls for regular data exchange and updates to the cloud without human intervention, enabling effective innovation in fields.

IMPACT ANALYSIS

IMPACT OF RUSSIAN UKRAINE WAR

After the People's Republic of China (hence "China") and India, Russia is the third-largest producer of aluminium in the world with a 5.5% production share and a comparable export share. The dependence of some countries varies widely, despite this figure appearing to be relatively minor. Most notably, Türkiye gets 35% of its aluminium from Russia, while more than 10% of China, Japan, and Poland's aluminium imports come from Russia. Russia accounts for 15% of nickel exports and 11% of nickel output worldwide. With an 84% import share, it is Finland's main source of nickel. As well Russia accounts for 15% of nickel exports and 11% of nickel output worldwide. With an 84% import share, it is Finland's main source of nickel. Additionally, it sells nickel to the Netherlands, Ukraine, and China, whose respective import shares are 34%, 239%, and 13%.

IMPACT OF ONGOING RECESSION

A significant part of the global economy is contributed by the semiconductor industry. In order for businesses to remain competitive, they have had to alter their production and distribution tactics, making it particularly susceptible to economic downturns. In general, this has led to lower sales, lower profitability, and increased costs for many industry players. The semiconductor business suffers disproportionately during economic downturns. Prices decline and production expenses rise when demand declines. Due to this, businesses could decide to spend less on R&D as well as workforce levels and other operational expenses. Market share can also fluctuate during a downturn, especially among smaller industry players who lack the financial resources to compete with bigger companies. When the price of potash increased by about 80% in February 2022 compared to the prior months, it reached an unusually noticeable peak. Since January 2022, vanadium and palladium prices have experienced strong increases. The prices of aluminium and nickel both started to fluctuate on February 22 and 24, reaching their all-time highs at the conclusion of the first week of March, and then started to decline. Palladium behaved in a very similar way. Ferrovanadium's price has been rising gradually, rising by 50%.

MARKET SEGMENTATION

By Raw Material

• GaSb

• InSb

• Bulk GaN

• Ga2O3

• Bulk AlN

• Single crystal diamond

• Engineered substrates and templates

By Application

• Computing

• Consumer

• Industrial/Medical

• Communication

• Automotive

• Military/Aerospace

REGIONAL ANALYSIS

Over the course of the forecasting period, Asia Pacific is expected to dominate the market. The expanding consumer electronics market and the expanding automotive industry are credited for driving market expansion. According to secondary analysis, FDI is permitted up to 49% under the automatic approach and up to 51% with government approval in the defense electronics sector. The Indian government has devised an automated process for 100% FDI in the ESDM market to entice investors, including original equipment manufacturers (OEMs) and integrated device manufacturers (IDMs).

India is riding the green mobility wave and has seen a sharp increase in the electrification of cars. India's EV sales increased by more than 200 percent in FY2022 compared to FY2021. The government wants a 30% market by 2030.

India is riding the green mobility wave and has seen a sharp increase in the electrification of cars. India's EV sales increased by more than 200 percent in FY2022 compared to FY2021. The government wants to hold 30% of the market for passenger cars by the year 2030. Additionally, it is anticipated that market participants would increase their investments to fuel market growth throughout the course of the projection period.

Over the course of the forecast, North America is anticipated to occupy a sizable portion of the market. North America has a sizable semiconductor substrate producer, semiconductor production facilities (fabs), and research institutions specializing in semiconductor components and methods. Semiconductors are an example of technology and innovation. For instance, in August 2022, the silicon carbide (SiC) plant for onsemi, a leader in intelligent power and sensor technologies, opened in Hudson, New Hampshire. The significance of semiconductor manufacturing in the US is highlighted by the new facility.

REGIONAL COVERAGE:

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America

KEY PLAYERS

Some of key players of substrate market are TTM Technologies Inc., BECKER & MULLER, SCHALTUNGSDRUCK GMBH, Advanced Circuits, Sumitomo Electric Industries Ltd, Wurth Elektronik Group (Wurth Group), AMD and Viettel High Tech, NextFlex, Infineon Technologies Inc., LG Innotek, Onsemi and other players are listed in a final report.

TTM Technologies Inc-Company Financial Analysis

RECENT DEVELOPMENT

• In December 2022, AMD and Viettel High Tech successfully deployed a field test for a 5G mobile network using AMD Xilinx Zyng UltraScalet MPSoCs. With more than 130 million mobile subscribers, Viettel High Tech, the largest telecom provider in Vietnam, has a long experience of deploying new networks more quickly thanks to new 5G remote radio heads. It is intended to satisfy the rising capacity and performance requirements worldwide mobile users.

• Project Call 7.0 (PC 7.0), the most recent request for proposals, was published in February 2022 by NextFlex, America's Flexible Hybrid Electronics (FHE) Manufacturing Institute, in order to support Department of Defense requirements. PC 7.0 seeks to fund projects that improve the creation and use of FHE while tackling important problems with enhanced production. Since NextFlex's establishment, an estimated USD 100 million has been set aside for projected investments in FHE. After the project value for PC 7.0 exceeds USD 11.5 million (project value and investment estimates including cost), it will be worth more than USD 128 million sharing).

• In July 2023, mobility technology company Magna and Onsemi, a pioneer in intelligent power and sensing technologies, announced a long-term supply agreement (LTSA) that will allow Magna to include Onsemis EliteSiC intelligent power solutions into its eDrive systems. By utilizing the industry-leading EliteSiC MOSFET technology from Onsemi, Magna eDrive systems might increase cooling performance, accelerate charging and acceleration rates, and increase the range of electric cars (EVs).

• LG Innotek unveiled the 2-Metal COF in March 2023 at the International Consumer Electronics Show (CES). A semiconductor substrate package called COF (Chip on Film) connects the display to the main printed circuit board. It facilitates the shrinking of display bezels and module miniaturization in electronic products including TVs, laptops, monitors.

  Substrates Market Report Scope:

  Report Attributes	Details
  Market Size in 2022	US$ 64.1 Million
  Market Size by 2030	US$ 422.98 Million
  CAGR	CAGR of 26.6%   From 2023 to 2030
  Base Year	2022
  Forecast Period	2023-2030
  Historical Data	2019-2021
  Report Scope & Coverage	Market Size, Segments Analysis, Competitive  Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
  Key Segments	By Raw Material (GaSb, InSb, Bulk GaN, Ga2O3, Bulk AlN, Single crystal diamond, Engineered substrates and templates), By Application (Computing, Consumer, Industrial/Medical, Communication, Automotive, Military/Aerospace)
  Regional Analysis/Coverage	North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe] Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]), Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East], Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia Rest of Latin America)
  Company Profiles	TTM Technologies Inc., BECKER & MULLER, SCHALTUNGSDRUCK GMBH, Advanced Circuits, Sumitomo Electric Industries Ltd, Wurth Elektronik Group (Wurth Group), AMD and Viettel High Tech, NextFlex, Infineon Technologies Inc., LG Innotek, Onsemi
  Market Opportunities	•Expanding Cooperation                                                              •Rising wireless Technologies
  Market challenges	Technological Advancement