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Forecasts expect the semiconductor materials, parts, and equipment (general manager) markets to see continued growth, following last year. Foundry investments and increased demand for system and memory semiconductors are expected to drive growth in small and medium-sized businesses. Trade wars between countries and supply restrictions due to the COVID-19 pandemic are expected to remain obstacles.

At the Semicon Korea 2022 Market Trend Forum held on the 9th, Sanjay Malhotra of Semiconductor Equipment and Materials International (SEMI) said, "The semiconductor market will continue to see solid growth this year."

The equipment sector, which accounts for the largest portion of small business managers for semiconductors, is expected to grow 12% from last year with "Wafer Fab Equipment (WFE)" that incorporate the entire process. Last year, the size of the WFE market reached $88 billion (about KRW 105.2 trillion). The Increase in foundry investment and increased demand for logic semiconductors and memory were the most effective.

The test equipment market is expected to grow rapidly. Forecasts expect the test equipment market to increase 30% this year to $8.2 billion, compared to last year. The packaging equipment market is also expected to grow slightly around 5%. It is predicted that the packaging equipment market, which surpassed $7 billion with an 80% growth rate since last year, is expected to see slower growth this year.

SEMI predicted that the semiconductor material market will grow around 7% to $65 billion (about KRW 77.7 trillion), compared to last year. In 2021, there was an 11% year-on-year growth. Materials applied to electrical equipment are also expected to grow 8% this year to $42 billion. Meanwhile, packaging materials are expected to form a $23 billion market, a growth of 4% from last year.

General Manager Malhotra stressed that potential risk factors such as export regulations and COVID-19 should also be taken into account while predicting the growth of the semiconductor market this year. He added, "We need to pay attention to continuous export restrictions, geopolitical and economic problems, COVID-19 pandemic control, and the pace of vaccine releases," adding, "The shortage of manpower in the industry is also notable due to the expansion of production capacity in the semiconductor sector."

By Staff Reporter Dong-jun Kwon (