Global semiconductor materials revenue hit $73.2 billion in 2025 — a year-on-year increase of 6.8% and a new all-time high — according to the latest Materials Market Data Subscription (MMDS) report published Tuesday by SEMI, the global industry association for the electronics manufacturing supply chain. The figure is equivalent to approximately NT$2.31 trillion.
The record reflects simultaneous growth in both wafer fabrication and packaging materials, fueled by the increasing complexity of advanced process nodes, rising demand for high-performance computing, and sustained investment in high-bandwidth memory (HBM) manufacturing — all tied to the accelerating global buildout of artificial intelligence infrastructure.
Wafer Fabrication Materials Climb 5.4%, Driven by Lithography
Wafer fabrication materials revenue grew 5.4% year-on-year to $45.8 billion in 2025 (approximately NT$1.45 trillion), according to the SEMI report. Lithography-related materials — including photomasks, photoresists, and ancillary chemicals — along with wet chemicals, each posted double-digit growth.
The trend marks a broader shift in how materials are understood within the semiconductor supply chain. As advanced nodes continue to shrink, materials are no longer treated primarily as production consumables but as critical enablers of stable, high-volume manufacturing. Stricter lithography requirements at the leading edge are simultaneously pushing up the variety, volume, and quality specifications of materials used throughout wafer production.
Packaging Materials Outpace Wafer Segment, Advanced Substrates in High Demand
Packaging materials grew at an even faster clip. SEMI reports packaging materials revenue rose 9.3% year-on-year to $27.4 billion in 2025 (approximately NT$864.7 billion), outpacing the wafer fabrication segment. Substrates and bonding wire materials posted the sharpest gains: bonding wire costs were pushed higher by rising gold prices, while advanced substrate demand continued to expand on the back of AI chip adoption.
The surge reflects the growing importance of advanced packaging technologies such as chip-on-wafer-on-substrate (CoWoS), which integrates high-speed logic chips with memory stacks. Packaging materials have become an indispensable link in the AI semiconductor supply chain. As SEMI notes, the materials market's growth momentum is no longer concentrated in front-end wafer fabrication alone — it now extends into back-end packaging and heterogeneous integration.
Taiwan Leads the World for 16 Consecutive Years
Taiwan retained its position as the world's largest semiconductor materials consumption market in 2025, extending a streak that now spans 16 consecutive years, according to the SEMI report. Taiwan's semiconductor materials market revenue reached $21.7 billion (approximately NT$684.9 billion). Mainland China ranked second at $15.6 billion (approximately NT$492.3 billion), followed by South Korea at $11.2 billion (approximately NT$353.5 billion).
Taiwan's enduring dominance reflects the island's dense concentration of foundry capacity, advanced process and packaging capabilities, and materials supply chains. Rapid growth in AI chip demand has reinforced Taiwan's role as a critical hub for advanced semiconductor manufacturing, sustaining strong consumption of key materials including photoresists, photomasks, wet chemicals, and substrates.
Mainland China and North America Record Strongest Regional Gains
SEMI noted that every major regional market recorded year-on-year revenue growth in 2025, with the sole exception of Europe. Mainland China and North America posted the highest growth rates among the major regions — a development SEMI attributed to ongoing semiconductor manufacturing investment and global supply chain restructuring, both of which are generating parallel increases in regional materials demand.
The 2025 record signals more than a cyclical recovery. It reflects the downstream effects of broad technology upgrades across the industry: as AI, high-performance computing, and HBM continue to drive demand for advanced process nodes and packaging, competition in the semiconductor sector is extending beyond chip architecture and equipment procurement to encompass the stability and technical depth of the materials supply chain itself. For Taiwan, holding the top spot in global semiconductor materials consumption for a sixteenth straight year further underscores the island's central place in the AI semiconductor manufacturing ecosystem.
（Related： Taiwan Beats South Korea on GDP—But Loses on Wages ｜ Latest ）
