May 14, 2026 /SemiMedia/ — The global semiconductor materials market expanded steadily in 2025 as growing investment in AI chips, high-bandwidth memory (HBM) and advanced packaging continued to lift demand across the supply chain. Industry group SEMI said the market reached $73.2 billion last year, supported by both wafer fabrication materials and packaging materials.
According to SEMI’s latest report released on May 12, revenue from semiconductor materials rose 6.8% year-on-year. Wafer fabrication materials generated $45.8 billion, up 5.4% from a year earlier, while packaging materials climbed 9.3% to $27.4 billion.
The organization said demand for advanced process technologies and AI-related chips continued to push material consumption higher, especially in lithography-related products. Photoresists, photomasks, wet chemicals and supporting materials all posted double-digit growth as chipmakers expanded production for leading-edge nodes and high-performance computing applications.
Advanced packaging also remained a key growth area. Demand for packaging substrates and bonding wire increased as AI accelerators and HBM products required more complex packaging technologies. Higher gold prices also contributed to growth in the bonding wire segment.
Taiwan remained the world’s largest semiconductor materials market for the 16th consecutive year, reaching $21.7 billion in 2025, up 8.6% from the previous year. Mainland China ranked second at $15.6 billion after posting 12.5% growth, while South Korea placed third with $11.2 billion in market size.
SEMI noted that most major regions recorded annual growth, except Europe, which declined 6%. Mainland China and North America were among the fastest-growing regions, helped by investment in AI infrastructure, advanced packaging capacity and high-end semiconductor manufacturing.
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