Monday, April 27, 2020

Deposition Precursors Market Growth threatened by COVID-19 impacts

TECHCET announced that the market for atomic layer deposition (ALD), chemical vapor deposition (CVD), and spin-on deposition (SOD) precursor chemicals needed for semiconductor fabrication is looking healthy for 1Q2020. In particular, demands for cobalt (Co) and hafnium (Hf) precursors are forecasted to grow steadily over the next quarter. However, impacts of COVID-19 on world economies are still uncertain, and precursor market growth may be impacted negatively, as shown in the Figure (below) from TECHCET's latest ALD, CVD, SOD Precursors Quarterly Market Update.

COVID-19 has had an impact on cobalt (Co) metal supply-chains globally, since China dominates production of electric-vehicle batteries which use cobalt as a critical material. The extended manufacturing shut-down in China to limit the spread of COVID-19 after the Lunar New Year holiday cut demand for cobalt chemicals and were further slowed by logistics challenges. Cobalt demand in China and prices are expected to increase in the second-half of 2020.

Trade war and other bilateral trade conflicts relating to semiconductor materials supply (e.g. Japan - South Korea) have triggered a focus on securing localized sources of critical materials in all regions. For example, South Korean IC fabs are now seeking hafnium (Hf), zirconium (Zr), and Rare Earth Elements (REE) supplies from Australia to avoid being dependent on China.

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ABOUT TECHCET: TECHCET CA LLC is an advisory service firm focused on process materials supply-chains, electronic materials technology, and materials market analysis for the semiconductor, display, solar/PV, and LED industries. Since 2000, the company has been responsible for producing the Critical Material Reports™ for the Critical Materials Council (CMC), covering silicon wafers, semiconductor gases, wet chemicals, CMP consumables, Photoresists, and ALD/CVD Precursors. For additional information about these reports or CMC subscription membership please contact, +1-480-332-8336, or go to


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