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News Article

Materials continue growth pattern

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Semiconductor materials post record 2008 revenues for fourth year
Despite the gloom and doom of recent months, the global materials market showed that despite financial uncertainty IC devices will continue to be made around the world and the consumer appetite for electronics has not abated. The number of players may be shrinking but raw output and revenue at the material level continues to grow.

The global semiconductor materials market was flat in 2008 compared to 2007, as rapidly slowing economic conditions in the fourth quarter squelched prospects for year-over-year growth across the materials market. Semiconductor materials market revenues reached $42.7 billion globally in 2008. The wafer fabrication materials and packaging materials were $24.1 billion and $18.6 billion, respectively. Comparable revenues for these segments in 2007 were $25.1 billion for wafer fabrication materials and $17.5 billion for packaging materials. The higher gold metal price in 2008 contributed to the year-over-year growth in the packaging materials market.

Japan remains the largest market consuming semiconductor materials consumption at 24 percent share due to its large wafer fab and packaging base, though currency conversion contributed to the year-over-year revenue growth. Revenue growth in both the Rest of World (ROW) region and China is attributed to on-going expansion of wafer fab production capacity and to the impact of gold metal pricing associated with some packaging materials. Slowing industry conditions impacted the other reporting regions in 2008. (The ROW region aggregates Singapore, Malaysia, Philippines, other areas of Southeast Asia and smaller global markets).

The Material Market Data Subscription (MMDS) from SEMI provides current revenue data along with two years of historical data and a three-year forecast. A year subscription includes four quarterly updates for the material segments reports revenue for seven market regions (North America, Europe, ROW, Japan, Taiwan, South Korea, and China). The report also features detailed historical data for: silicon shipments and revenues for photoresist, photoresist ancillaries, process gases and leadframes.

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