Increasing Investments in Semiconductor Manufacturing Bolsters US High-Purity Electronic-Grade Phosphoric Acid Market Growth
According to our latest study on “US High-Purity Electronic-Grade Phosphoric Acid Market Size and Forecast (2021–2031), Country Growth Opportunity Analysis – by Application”, the market was valued at US$ 78.73 million in 2023 and is projected to reach US$ 112.21 million by 2031; it is estimated to record a CAGR of 4.5% from 2023 to 2031. The report highlights key factors driving the market growth and prominent players along with their developments in the market.
Phosphoric acid, a weak triprotic acid, is a colorless and odorless viscous liquid at 85% concentration. The purity of electronic-grade phosphoric acid solvent is sufficient for applications in the semiconductor manufacturing and electronic industries. It is used as an etching agent (for semiconductors), sanitizing agent (for silicon wafers), anti-rust agent, and cleaning agent in the electronics industry. Also, highly pure, clear, and stable phosphoric acid is an important component used in the manufacturing of liquid crystal displays (LCDs), which have become ubiquitous in the modern world. It is used for etching glass, removing impurities, etc., in LCD manufacturing facilities. The high purity and strong acidity of phosphoric acid results in improved LCD panel quality, resulting in vibrant colors and excellent image clarity. The report includes the US high-purity electronic-grade phosphoric acid market forecast based on application. The semiconductor manufacturing application is expected to hold the largest US high-purity electronic-grade phosphoric acid market share by 2031.
US High-Purity Electronic-Grade Phosphoric Acid Market
US High-Purity Electronic-Grade Phosphoric Acid Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Application (Semiconductor Manufacturing, Electronics Etching and Cleaning, and Others)
US High-Purity Electronic-Grade Phosphoric Acid Market Growth 2031
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High-purity electronic-grade phosphoric acid is made by using different materials and equipment, such as phosphate rock, sulfuric acid, and an electric furnace. Access to a key input, i.e., phosphate rock, may be challenging in the international market. However, the US is one of the major producers and consumers of phosphate rock. According to the data from the Investing News Network, the top phosphate-producing states in the US are Florida and North Carolina, which account for over 75% of domestic output. The other 25% of production comes from Utah and Idaho. Most phosphate rock mined in the country is utilized for superphosphoric acid and phosphoric acid manufacturing. Manufacturers produce high-purity electronic-grade phosphoric acid by using different methods. The wet process, thermal process, and furnace process are the methods used to produce phosphoric acid, with the wet process being the most commonly used one. In the wet process, phosphate rock is first ground into a fine powder and then mixed with sulfuric acid to produce phosphoric acid. Later, the mixture is filtered to remove any impurities and to separate the solid gypsum from the liquid phosphoric acid. In the next step, the liquid phosphoric acid is purified and concentrated by a series of chemical treatments and distillation processes. The choice of production method depends on different factors, such as the quality of phosphate rock, the required purity and concentration of the phosphoric acid, and the economics of scale of the production process. Higher-purity phosphoric acid, including electronic-grade phosphoric acid, requires additional purification steps. The phosphoric acid purification process consists of several removal steps put in sequence to achieve the target quality.
Further, the US high-purity electronic-grade phosphoric acid market is moderately competitive. There are a few entry barriers in the market for new entrants; these include the requirement of initial capital investments, moderate competition from existing players, and high technology costs, all of which significantly affect the entry decisions of new market players. Phosphoric acid production is a complex and energy-intensive process that requires careful control of various reaction parameters, and the use of specialized materials and equipment. On the other hand, the presence of limited players in the country and easy access to raw materials encourage new entrants to enter the market. Also, factors such as the growing electronics and semiconductors sector in the country trigger the demand for high-purity electronic-grade phosphoric acid. Players operating in the US high-purity electronic-grade phosphoric acid market compete with each other based on product differentiation, quality, and price. They adopt strategies such as research and development, expansions, and mergers and acquisitions to stand out as strong competitors.
Increasing investments in semiconductor manufacturing is key to the US high-purity electronic-grade phosphoric acid market growth. The US semiconductor industry is one of the world’s most advanced manufacturing and R&D sectors. The government of the US strives to boost domestic semiconductor manufacturing by investing vast amounts into the electronics & semiconductor sector. The US semiconductor industry aims to increase its share in the global chip market to 20% by 2030. The Biden administration and lawmakers passed the CHIPS and Science Act into law in August 2022, making heavy investments in semiconductor manufacturing. The legislation includes US$ 52 billion to strengthen semiconductor manufacturing in the US. Furthermore, several prominent companies have announced significant investments in the US manufacturing sector in the past. At the start of 2022, Intel announced plans to build a semiconductor manufacturing plant worth US$ 20 billion in Ohio. In 2022, Micron announced its plans to invest up to US$ 100 billion in the next 20 years to build a massive semiconductor factory in upstate New York. Samsung is currently building a new semiconductor plant in Taylor, Texas. Although The project was originally expected to cost US$ 17 billion, the figure has reportedly risen to US$ 25 billion as a result of inflation. Texas Instruments is leading the construction of up to four fabs in Sherman, Texas, to produce 300-mm semiconductor wafers destined for all sorts of electronic equipment. The total investment could be as high as US$ 30 billion. Therefore, increasing investments in semiconductor manufacturing in the US are contributing to market growth. Further, the focus on adopting sustainable practices is likely to emerge as one of the US high-purity electronic-grade phosphoric acid market trends in the coming years.
The US high-purity electronic-grade phosphoric acid market analysis is carried out by identifying and evaluating key players in the market across different regions. ICL Group Ltd, Spectrum Chemical Manufacturing Corp, Solvay SA, Capitol Scientific Inc, Lab Alley LLC, Univar Solutions Inc, Prayon SA, OCI Holdings Co Ltd, Advance Scientific & Chemical Inc, and Hubei Xingfa Chemicals Group Co Ltd are among the prominent players profiled in the US high-purity electronic-grade phosphoric acid market report. Players operating in the market focus on providing high-quality products to fulfill customer demand. They also emphasize on adopting strategies such as mergers and acquisitions, capacity expansions, partnerships, and collaborations to stay competitive in the market. For instance, in 2024, Lab Alley, LLC expanded its operations with the addition of a new 33,000 sq. ft. facility in Austin, Texas, into its assets. In 2023, Univar Solutions increased its footprint, product portfolio, and services in Eastern Canada with the acquisition of FloChem Ltd. Also, in 2023, Prayon, a global player in phosphorus chemistry, successfully acquired Febex from Arkema. With 97% of the shares held, Prayon becomes the majority shareholder in Febex company. This acquisition marks an important step in strengthening Prayon’s position in phosphorus chemistry. The US high-purity electronic-grade phosphoric acid market report also includes company positioning and concentration to evaluate the performance of players in the market.
US High-Purity Electronic-Grade Phosphoric Acid Market Segmentation:
The US high-purity electronic-grade phosphoric acid market is segmented on the basis of application. Based on application, the market is segmented into semiconductor manufacturing, electronics etching and cleaning, and others. Semiconductor manufacturing is estimated to hold a significant US high-purity electronic-grade phosphoric acid market share by 2031.
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