Competition for Market Share Remains Intense in Semiconductor Chemicals and Materials Sectors

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 |  Includes: APD, BASFY, HON, OMG, SUMCY
by: Robert Castellano

Semiconductor chemicals and materials market leaders continue holding onto razor thin leadership positions, and exchange rates can play a big part, according to the report “Chemicals and Materials for Sub-100 nm IC Manufacturing."

Market share differences between the top two leaders in four major chemical and material sectors is less than 3.4%. In three out of the four sectors, the top leaders are in different countries, so that swings in exchange rates will readily tip the scale. Coincidently a strong dollar will make U.S. goods more expensive to foreign purchasers.

Material

Top Two Leaders

(alphabetical order)

Market Share Difference

Country

Semiconductor Gases

Air Products (NYSE:APD)

0.3%

USA

Taiyo Nippon Sanso

Japan

Sputtering Targets

Honeywell (NYSE:HON)

0.2%

USA

JE/Nikko

Japan

Liquid Chemicals

BASF (OTCQX:BASFY)

3.0%

Germany

OM Group (NYSE:OMG)

USA

Silicon Wafers

Shin-Etsu Handotai

3.4%

Japan

Sumco (OTC:SUMCY)

Japan

Click to enlarge

For these sectors (market share spread is 10%), the global market was $11.2 billion in 2009, a decrease of 33.4%, primarily due to a decrease of 41.6% in the silicon wafer sector, which represented 59.9% of the total chemical and material market based on these sectors. We anticipate the market to increase more than 20% in 2010 and more than 15% in 2011.

Disclosure: None