Outlook Supplement - Flipbook - Page 25
Forecast
absorb new workers in 2026. More
flexibility in training the workforce is
still needed to address the vagaries of
the market and the industry’s response
to it. Semitracks, Inc. is positioned to
help with this training need. We can
scale our training as needed and provide
customized solutions for key gaps in
talent and workforce personnel. 2026
should again be an interesting year, given
the uncertain demand in the electronics
industry, so creative solutions may be
necessary for workforce development.
We stand ready to help.
Materials 2026 Forecast Trends
L. SHON-ROY, P r e s i d e n t ,
M at e r ial s A n a ly si s , Te c h ce t
b y Te c hin sig h t s
L. SHON-ROY
2026 Forecast outlook
from Techcet’s materials experts on what
they expect to see in
the coming year in
terms of critical technology and business
trends relating to
materials:
Business Trends
• The materials market is expected
to improve in 2026, growing 7% to
8% over 2025, driven by increased
demand for materials from chip expansions and continued growth of AI
applications.
• Geopolitics and trade wars will continue to drive up prices in metals and
minerals, many of which originate
from China. Key examples include
tungsten, rare earths, gallium, germanium, etc.
• The US supply chain continues
to expand, adding manufacturing
capacity for materials to support chip
expansion plans. This trend is driving
investment from Asian companies
seeking a footprint in the US as
well as US-headquartered materials
companies.
• Large MNEs that have electronic
www.semiconductordigest.com
materials business units continue to
re-evaluate their involvement in the
semiconductor industry. Splitting off
their electronics BU insulates the rest
of their company from the cyclical
nature of the semiconductor industry and provides an easier path to
divestment.
Technology Trends
• ALD/CVD precursors and CMP
materials are still the big winners in
materials growth rates for the coming years due to increasing demand
for 3DNAND, advanced logic, and
advanced DRAM. AI has boosted
demand for these materials needed
for HBM.
• PFAS-free materials are of high interest but are coming into the market
slowly. Slowness is attributed to the
low cost and plentiful availability of
traditional PFAS-containing materials
from China, as well as to the easing
of US environmental regulations.
• Technical challenges and opportunities exist for cleaning chemistries and
low-emission etch chemistries needed
for advanced devices in the sub 5nm
area and advanced memory devices.
Supply Chain
• Increased Geopolitics, trade wars,
tariffs, and embargoes drive ongoing concerns about the availability
of raw materials, especially metals
and minerals from China. Current
Chokepoints include:
• Metals used in chip production that
are highly dependent on China and
subject to export permit restrictions
include: tungsten, copper, gallium,
germanium, and rare earths.
• Fluorocarbons - Europe and the US
lack sufficient capacity to support
CF gas semiconductor industry
demand, while China has ample
capacity.
• T-Glass and advanced packaging
substrates are in short supply due to
high demand for AI chips - expected
to continue until mid 2026.
• China has a lower hurdle rate
and easier pathway to overcome
the 3-key challenges that must
be addressed to develop new raw
materials sources: 1) Permitting &
Environmental Regulations, 2) Plant
build timing & resources, and 3)
Technical know-how:
• Permitting & Environmental Regulations required for new mining
or chemical processing plants are
challenging to overcome in the US
and Europe because of strict onsite
review and community involvement
- often requiring 2-3 years to get
through, versus parts of Asia, i.e.,
China (< 1year).
• Building a mine and/or process plant
to refine the ore takes time to source
the needed equipment and personnel
once the site is identified. The time
required for this step: 1-3 years.
• Technical know-how of metal/mineral refining is lacking in the west
where processes must be developed
that are friendly to humans and the
environment.
Edge AI and Embedded
Processing Innovation Will Usher
in a New Era of Physical AI
RON AMICHAI, S V P & G M ,
Embedded Processing
& D L P ® P r o d u c t s , Te x a s
Instruments
In 2026, advancements
in edge AI technology
and embedded processing
will converge to usher
in the era of physical
AI. By moving AI out
of the cloud and into the
physical world, the next
RON AMICHAI
generation of intelligent,
efficient systems will be
smarter, safer, and more responsive. With
improved power efficiency and on-chip
intelligence, intelligent devices will
become the standard to sense, interpret
and act in real-time.
Semiconductor Digest Supplement to January 2026
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