Pacific Securities has released a research report stating that electronic special gases, as a critical material for semiconductor manufacturing and often termed the "blood of chips," account for nearly 14% of wafer fabrication consumable costs, second only to silicon wafers. The market size for electronic special gases in China is projected to grow from RMB 19.5 billion in 2024 to RMB 70.8 billion by 2030, with the electronic special gas segment itself expected to expand rapidly to RMB 42 billion.

The Pacific Securities Co., Ltd. notes that silane, leveraging its dual characteristics of being a "gas" and "silicon-containing," is one of the most important high-purity silicon sources. It is widely used in semiconductor thin-film deposition and epitaxy, among other applications. The future diffusion of new applications such as silicon-carbon anodes is expected to drive sustained growth in domestic demand for silane gas. Meanwhile, high-purity silicon tetrachloride faces challenges in capacity expansion due to its byproduct nature, and a significant surge in fiber optic demand has led to periodic supply tightness in the industry. The key viewpoints from Pacific Securities are as follows:

Electronic Special Gases as a Key Semiconductor Material, Driven by Three Major Downstream Demand Areas

Electronic special gases are extensively used in integrated circuits, display panels, semiconductor lighting, and photovoltaics, among other industries. Integrated circuit manufacturing involves thousands of process steps with extreme complexity, requiring the use of over a hundred types of electronic special gases. From the perspective of semiconductor market composition, electronic special gases represent the second-largest consumable in wafer fabrication, accounting for close to 14%, trailing only silicon wafers.

Rapid Growth in China's Electronic Special Gas Market, Projected to Reach RMB 70.8 Billion by 2030

The three major downstream sectors for electronic special gases are advancing in tandem. Semiconductor manufacturing is growing alongside the development of AI technology, display panels are steadily increasing with the gradual recovery of downstream consumer electronics, and demand from photovoltaics and fiber optics is growing robustly. On the demand side, counter-cyclical capacity expansions by downstream fabrication plants will contribute to the continuous growth in demand for electronic special gases. Policy-wise, the "Made in China 2025" initiative outlines a plan for 70% of China's core basic components and key basic materials to achieve self-sufficiency, providing policy guidance and support for the localization of electronic special gases. It is anticipated that China's electronic gas market will experience accelerated development, with the market size expected to increase from RMB 19.5 billion in 2024 to RMB 70.8 billion by 2030. Notably, the market size for electronic special gases is forecast to rise swiftly to RMB 42 billion.

Silane Materials: Transitioning from Photovoltaic Auxiliary to Silicon-Carbon Anode and Fiber Optic Core Raw Material, Poised for New Opportunities

Due to its unique "gaseous" and "silicon-containing" properties, silane stands as one of the most crucial high-purity silicon sources. Its primary applications include semiconductor microelectronic thin-film preparation, and it is also used for low-temperature epitaxy, selective epitaxy, and heteroepitaxy on silicon substrates, as well as in the synthesis of compound semiconductor devices like gallium arsenide and silicon carbide. The future proliferation of new applications, such as silicon-carbon anodes, is expected to fuel ongoing growth in domestic demand for silane gas. The expansion of high-purity silicon tetrachloride production is constrained by its status as a byproduct, and a substantial increase in fiber optic demand has resulted in intermittent supply shortages within the industry.

Key Risk Factors to Consider

Potential risks include intensifying industry competition; downstream demand falling short of expectations; high uncertainty surrounding technological breakthroughs; and product validation not meeting anticipated timelines.