Market Trends of Special Graphite Industry
Increasing Demand from the Electronics Industry
- Special graphite is majorly used in the electronics industry. The applications of special graphite products in the electronics industry include the manufacturing of silicon semiconductors, compound semiconductors, light-emitting diode (LED) chips, lithium-ion batteries, liquid crystal display (LCD) panels, hard disks, etc.
- The special graphite components, such as heaters, crucibles, reflectors, and heat shields, are also used for crystal growing units. The high-temperature zone of the furnace consists of heat-resistant graphite components.
- Special graphite is mainly used in the semiconductor and LED industries to produce polysilicon. The products made from special graphite include cleaned electrodes for polysilicon separation, heat shields, thermal insulation components, and gas ducts for converters.
- The finished semiconductor product is manufactured after the silicon epitaxy process, in which wafers are passed on graphite susceptors. These susceptors are generally made from high-strength isostatic graphite.
- Increasing investments in the electronics industry are poised to be a significant factor in the growth of the special graphite market. According to the India Brand Equity Foundation (IBEF), India is poised to emerge as a frontrunner in the global semiconductor industry, with domestic semiconductor consumption projected to surpass USD 80 billion by 2026.
- All the factors above are expected to drive the global market during the forecast period.
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Asia-Pacific to Dominate the Market
- Asia-Pacific dominated the market with a more than 45% share and is expected to witness the fastest market growth during the forecast period.
- China continues to dominate special graphite production and demand. Almost all stages of the lithium-ion battery manufacturing chain are focused on China, and China is by far the largest and most rapidly growing market for lithium-ion batteries paving the way for special graphite's market growth.
- According to the Ministry of Industry and Information Technology (MIIT), Electronic manufacturing enterprises contributed to a 0.9% year-on-year increase in value-added, showing improvement compared to the first seven months.
- Special graphite has also found application in the steelmaking industry. China holds the largest share in terms of consumption and production capacity of graphite electrodes in the global scenario.
- Additionally, South Korea is the fourth-largest exporter of steel in the world. The country’s top exporting countries are China, Japan, and the United States. POSCO and Hyundai Steel Co. are the largest steel manufacturers in the country.
- The growth of the electronics industry has significantly propelled the expansion of the special graphite market. The Ministry of Electronics and Information Technology (MeitY) projects a remarkable surge, expecting the industry's value to escalate from USD 75 billion in 2020-21 to an impressive USD 300 billion by 2025-26.
- The production of crude steel has also witnessed an increasing trend in recent years, in turn, increasing the consumption of special graphite molds in the country.
- Such growing demand in various countries is, in turn, boosting the demand for special graphite in the region.
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