Market Trends of High Purity Quartz Industry
Growing Demand from Semiconductor Industry
- High-purity quartz is used within the semiconductor industry in the manufacturing of crucibles and quartz glass products such as tubes, rods, and windows. It is due to its superior properties, such as high silicon content and excellent purity.
- High-purity quartz is primarily used in the manufacturing of silicon metal. It is a base material in the production of semiconductor wafers.
- Silicon acts as an insulator at low temperatures and a smooth conductor of electricity at high temperatures, which is why it is used in the production of various semiconductor products such as integrated circuit boards, transistors, microchips, etc. Hence, growing demand for new-generation wafers from the semiconductor industry is anticipated to enhance the HPQ consumption rate.
- Additionally, the increasing penetration of the Internet of Things (IoT) has led to a substantial increase in demand for semiconductor ICs, which is a key factor driving the demand for high-purity quartz.
- Moreover, the growing semiconductor industry is expected to create huge demand for HPQ. It thereby boosts the growth of the target market over the forecast period.
- According to the Semiconductor Industry Association (SIA), the semiconductor industry sales totaled USD 574.1 billion in 2022 globally, registering an increase of 3.3% compared to 2021 with USD 555.9 billion.
- Furthermore, geographically, Americas saw the largest increase (16.2%) in the sales of semiconductors in 2022. China tops the market for semiconductors, with sales totaling USD 180.4 billion in 2022, a decrease of 6.2% compared to 2021. Moreover, annual sales also increased in 2022 in Europe (12.8%) and Japan (10.2%).
- Therefore, considering the factors above, the demand for high-purity quartz is expected to rise in the semiconductor application segment significantly in the near future.
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Asia-Pacific Region to Dominate the Market
- Growing installations of solar PV, along with the high adoption of high-purity quartz from various end-use industries across Asian countries, including India, China, and Japan, are the notable factors that are driving the growth in Asia Pacific.
- Increasing penetration of the Internet of things, growing demand for high bandwidth networks, and rising optical fibers and telecommunication industry are among the major factors expected to fuel the growth of the Asia Pacifica high purity quartz industry in the next few years.
- In 2023, China Telecom announced an investment of CNY 3 billion (USD 434 million) to establish the China Telecom Quantum Information Technology Group Co. The new company was established with a focus on developing quantum technology, stepping up the pace of quantum product updates, and promoting the industry nationwide.
- According to the China Electricity Council, as of 2022, China installed a solar power capacity of over 390 GW. China made enormous strides in building its solar power capacity within the past decade, growing cumulative capacity from only 4.2 GW in 2012 to 392.6 GW in 2022.
- Additionally, the region is anticipated to dominate the target market over the forecast period as China is the hub for semiconductors and electronics and industry.
- Moreover, in India, rapid industrialization, growing installations of solar plants, increasing government support for the use of solar, and rising adoption of advanced electronics are factors propelling demand for high-purity quartz and thereby boosting the growth of the market.
- In order to bring in a green revolution in India, the Indian government set an ambitious target of having 500 GW of installed renewable energy by 2030. It includes the installation of 280 GW of solar power, which in turn will increase the demand for high-purity quartz in the country.
- Additionally. according to the Indian Electronics and Semiconductor Association, the semiconductor market in India is expected to value USD 64 billion by 2026. The ongoing “Make In India” initiative is expected to attract investments in the semiconductor industry in the country.
- In June 2023, Micron Technology Inc., one of the major semiconductor manufacturers, announced its investment of USD 825 million to set up assembly and test manufacturing centers for semiconductors in Gujarat, India. The facility is expected to be operational by the end of 2024.
- All the above factors are likely to fuel the growth of the Asia-Pacific high-purity quartz market over the forecast period.
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