The global semiconductor materials market revenue grew 6.8% year-on-year to $73.2 billion in 2025, driven by rising demand for advanced semiconductor manufacturing technologies, according to industry association SEMI.
SEMI, the global industry association representing over 4,000 companies and 1.5 million professionals across the semiconductor and electronics manufacturing supply chain, said growth was supported by expansion in both wafer fabrication materials and packaging materials segments.
The increase reflects higher process complexity, advanced-node demand and continued investments in high-performance computing (HPC) and high-bandwidth memory (HBM) manufacturing, according to data from SEMI’s Materials Market Data Subscription (MMDS), cited in a PR Newswire statement.
Wafer Fab Materials Growth
Revenue from wafer fabrication materials increased 5.4% to $45.8 billion in 2025.
Lithography-related materials, including photomasks, photoresists and ancillaries, along with wet chemicals, recorded strong double-digit growth. The growth was driven by increasing process intensity and tighter lithography requirements in advanced semiconductor manufacturing.
The trend reflects the semiconductor industry’s continued transition towards advanced nodes and more complex chip architectures, resulting in higher materials consumption.
Packaging Materials Demand Strong
Packaging materials revenue rose 9.3% to $27.4 billion during 2025.
Substrates and bonding wire led the growth, supported by higher gold prices impacting bonding wire costs and increasing demand for advanced substrates used in high-performance semiconductor applications.
The packaging segment continues to benefit from rising adoption of advanced packaging technologies in AI, HPC and data centre applications.
Taiwan Largest Consumer
Taiwan remained the world’s largest consumer of semiconductor materials for the 16th consecutive year, with revenue of $21.7 billion in 2025.
China ranked second with revenue of $15.6 billion, supported by double-digit growth, followed by South Korea at $11.2 billion.
Among major regions, all markets except Europe reported year-on-year growth. China and North America recorded the strongest growth rates among leading semiconductor materials markets.
Market Data Subscription
SEMI’s MMDS provides annual revenue data with 10 years of historical information and a two-year forecast.
The subscription includes quarterly updates for the materials segment and tracks revenue across North America, Europe, Japan, Taiwan, South Korea, China and the rest of the world.
The report also includes detailed historical data on silicon shipments and revenues from photoresists, photoresist ancillaries, process gases and lead frames.