Thin Wafer Market Trends

Growth Drivers

• Growing Adoption of Smartphones - About 85 percent of the world's population would own a smartphone by 2023 when there would be approximately 5 billion users worldwide. The microprocessors that make up the "brains" of cell phones are made on thin wafers. The thin wafer's reduced component sizes make it possible to create high-performance processors that could fit in the constrained space found in smartphones.
• Rise in Data Centers - In the entire world, there are about 7,999 data centers. Approximately 32% of the data centers among them are situated in the US. Hence, the demand for thin wafers is growing. Advanced cooling techniques for data centers, including the manufacture of heat sinks and thermal interface materials, are accomplished using thin wafers. The performance and dependability of the computer components in data centers must be maintained owing to the high heat generated by these facilities.
• Surge in Penetration of LEDs - Between 2012 and 2019, the pace of LED adoption in the global lighting industry increased, and in 2025, it is anticipated to reach a penetration of almost about 75 percent. Light-emitting diodes (LEDs), which are employed in a variety of lighting applications, are also produced on thin wafers.
• Rise in Demand for Renewable Sources of Energy - The percentage of renewable energy in the world's electrical generation increased from about 26% in 2019 to approximately 28% in 2020. Hence, the demand for solar chips is growing. When making solar cells, which turn sunlight into power, thin wafers are employed. The wafer's thinness enables more effective solar energy absorption and higher energy output.
• Upsurge in Demand for Health Monitoring Devices – Health monitoring gadgets, especially those that are wearable and implanted, are made from thin wafers. Hence, with the growing demand for health monitoring devices, the market is estimated to grow. Globally, the number of linked wearable devices has increased from 324 million in 2016 to approximately 721 million in 2019, more than doubling in only three years.

Challenges

• Competition from Alternative Technologies - Although thin wafers provide several advantages over thick wafers that have been used in the past, other technologies could also meet these demands. For instance, 3D packaging technology and cutting-edge materials could also make it possible to manufacture small, powerful gadgets. Hence, this factor is estimated to hinder the growth of the market.
• Environmental Concerns
• Lack of High Initial Investment