Semiconductor Grade Ammonia Market

Semiconductor Grade Ammonia Market Highlights

The global semiconductor grade ammonia market is expected to cross a value of USD 702.3 million by the end of 2032. The market was valued at USD 415.8 million in 2023 and is expected to expand at a CAGR of 6.5% between 2024-2032.

• Over the mid-term, the expanding semiconductor industry is the primary factor anticipated to drive the global semiconductor grade ammonia market.
• The high cost of production of semiconductor grade ammonia is a major factor to challenge the market growth.
• The Asia Pacific semiconductor grade ammonia market is projected to dominate the global market.

Semiconductor Grade Ammonia Market Outlook

The high-purity ammonia gas used in the semiconductor manufacturing process is often known as semiconductor grade ammonia. This ammonia type acts as a critical chemical precursor in the fabrication of silicon-based integrated circuits and other semiconductor devices.

Our researchers at KD Market Insights predict that the expanding semiconductor industry globally is one of the major factors expected to drive the growth of the global semiconductor grade ammonia market.  The semiconductor industry continues to experience robust growth driven by expanding applications such as artificial intelligence (AI), Internet of Things (IoT), 5G technology, and automotive electronics. As per our analysts, the revenue generated from the semiconductor industry by the end of 2032 is projected to touch USD 1507.2 billion, registering a CAGR of close to 12.5% during the forecast period. Linde plc, Air Products and Chemicals, Inc., and Praxair, Inc. (a subsidiary of Linde plc) are some of the significant parties in the global market for semiconductor grade ammonia.

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Semiconductor Grade Ammonia Market Drivers – Analyst’s Observation

According to the analysts at KD Market Insights, some key growth drivers for the global semiconductor grade ammonia market are:

• Rapid Shift Towards Larger Wafer Sizes and Advanced Node Technologies: Semiconductor manufacturers are transitioning to larger wafer sizes which are over 300mm and advanced process node technologies, such as 7nm or 5nm, to improve the performance, power efficiency, and cost-effectiveness of semiconductor chips. These advanced manufacturing processes often require higher volumes of process gases, including ammonia, to maintain precise control over film deposition, surface cleaning, and doping processes, which is expected to drive the demand for ammonia in the semiconductor industry.
• Surge in Expansion of Semiconductor Fabrication Facilities: With the growing demand for semiconductors worldwide, businesses in the semiconductor industry are increasingly working on the construction and expansion of semiconductor fabrication facilities. As the number of these facilities increases, the demand for semiconductor-grade ammonia would also increase, and in turn, contribute to the market growth.

Which Probable Factors Could Hamper the Growing Semiconductor Grade Ammonia Market Trend?

As per our KD Market Insights analysis, some of the challenges expected to limit the global market growth of semiconductor grade ammonia are:

• High Production Cost of Such Ammonia Grades: The cost of production of semiconductor grade ammonia is usually very high owing to the sophisticated purification processes involved in it. In the semiconductor industry, the demand for ammonia with specific purity levels are usually high, and hence, the purification of these chemicals has to be done accordingly, which, in turn, raises the cost of production.
• Concern for the Unavailability of Feedstock: The raw materials used to manufacture this type of ammonia grade usually fluctuate in its availability. This, in turn, raises the cost of the feedstock and also impact the production process, creating complications for the manufacturing of semiconductor grade ammonia.

How is the Global Semiconductor Grade Ammonia Market Segmented?

Our experts at KD Market Insights have segmented the global semiconductor grade ammonia market as:

What are the Probable Factors Influencing the Asia Pacific Semiconductor Grade Ammonia Market Forecast?

The Asia Pacific semiconductor grade ammonia market is majorly driven by the presence of a robust semiconductor industry in the region, along with the rise in investments in semiconductor research and development. The Asia Pacific region is a hub for semiconductor manufacturing, with countries like Japan, South Korea, Taiwan, and China hosting some of the world's largest semiconductor fabrication facilities. As semiconductor manufacturers in the region expand their production capacities to meet the growing demand for electronic devices, the demand for high-purity chemicals for use in the production processes would also increase. On the other hand, the governments, academic institutions, and private companies in the region are also investing heavily for R&D in the semiconductor industry, which in turn, supports the development of next-generation semiconductor materials.

As per our analysts at KD Market Insights, the following five players lead the Asia Pacific semiconductor grade ammonia market growth:

• Mitsubishi Gas Chemical Company, Inc.
• JSR Corporation
• SK Materials Co., Ltd.
• Linde plc
• Taiyo Nippon Sanso Corporation

Which Key Players Top the Global Semiconductor Grade Ammonia Market Share?

As per our analysts at KD Market Insights, the competitive landscape of global semiconductor grade ammonia market facilitates our readers in identifying their closest competitors. The manufacturers who are associated with semiconductor grade ammonia market are raising their focus on expanding their presence, as well as their market share. The market has also been witnessing an upward movement in the number of collaborations between research institutions and key players, aimed at introducing advanced technologies and innovation of new products. Here is a list of the key players who top the global semiconductor grade ammonia market share:

• Linde plc
• Air Products and Chemicals, Inc.
• Praxair, Inc. (a subsidiary of Linde plc)
• Matheson Tri-Gas, Inc.
• Taiyo Nippon Sanso Corporation
• Messer Group GmbH
• Air Liquide S.A.
• Showa Denko K.K.
• Airgas, Inc. (a subsidiary of Air Liquide S.A.)
• SK Materials Co., Ltd.
• Grignard Company, LLC
• Iwatani Corporation

What are the Recent Developments Observed in the Semiconductor Grade Ammonia Market?

Over the years, the experts at KD Market Insights have been observing the recent developments associated with global semiconductor grade ammonia market trends. Our expert’s market forecast analysis has recorded the market players adopting plentiful of key strategies including new product launches, mergers & acquisitions, and collaborations.

For instance, Linde plc stated that it has expanded its semiconductor gas production capacity in the Asia Pacific region by the addition of a new production facility.

Further, Taiyo Nippon Sanso Corporation shared that it has introduced the next generation of advanced purification technology for semiconductor-grade ammonia.