Wafer Cutting Fluids Market Size, Share, Growth & Industry Analysis, By Product Type (Water-Soluble, Water-Insoluble), By Application (Semiconductor, Solar Wafer, Others) and Regional Analysis, 2023-2030

Wafer Cutting Fluids Market Size

The global Wafer Cutting Fluids Market size was valued at USD 1,704.5 million in 2022 and is projected to reach USD 2,447.6 million by 2030, growing at a CAGR of 4.95% from 2023 to 2030. In the scope of work, the report includes products offered by companies such as Evonik Industries AG, Momentive, Exxon Mobil Corporation, Dynatex International, Keteca Singapore (Pte) Ltd., BASF SE, SINO-JAPAN CHEMICAL CO., LTD., UDM Systems®, LLC, and Others.

The wafer cutting fluids market is a significant component of the global semiconductor industry, providing crucial lubrication and cutting aid to improve the precision and quality of the cutting process. The market is estimated to experience significant growth during 2023-2030 due to the increasing demand for semiconductors across a wide range of applications, from consumer electronics to automotive and aerospace manufacturing.

• The market has witnessed a shift towards more environmentally friendly and cost-effective cutting fluids, such as water-soluble cutting fluids, which offer several advantages over traditional oil-based fluids.

Analyst’s Review 

There is a growing focus on innovation in the industry, as companies seek to develop new cutting fluid formulations and technologies to stay ahead of the competition and meet the evolving needs of semiconductor manufacturing. However, factors such as supply chain disruptions and the development of substitute products could impact market expansion.

Market Definition

The wafer cutting fluids market refers to fluids or liquids used in the slicing or cutting of wafers or substrates. Wafers are thin slices of silicon or other semiconducting materials that are used in the production of electronic components such as microprocessors, integrated circuits, and solar cells. The cutting fluids used in this wafer manufacturing process reduce friction, dissipate heat, increase tool life, and enhance the quality and finish of the cut surface. Wafer cutting fluids are primarily utilized in the semiconductor, electronics, and solar industries.

Technological advancements, increasing demand for electronic devices, and growing production of solar panels impact the market for wafer cutting fluids, making it a rapidly evolving industry. Wafer cutting fluids comprise two types, water-soluble and water-insoluble. Water-soluble cutting fluids are a type of cutting fluid that utilizes water as a primary solvent or base that are designed to dissolve easily in water, making them easy to clean up and dispose of after processing.

These fluids are generally utilized in semiconductor manufacturing, in place of or in conjunction with other types of cutting fluids. These fluids provide critical lubrication and cooling to the cutting or slicing process while also enhancing the quality of the surface finish of the wafers. Water-soluble cutting fluids offer many benefits, including ease of use, cost-effectiveness, and environmental safety.

Water-insoluble fluid is a type of cutting fluid that does not completely dissolve in water and instead relies on a non-water-based solvent or base that is generally preferred for use in high-temperature machining operations that require superior lubrication and cooling capabilities. These fluids are widely used in various industries, including aerospace, automotive, and metalworking. They are instrumental in enhancing the quality and precision of the cutting or slicing process while also extending the lifespan of the cutting tools.

Market Dynamics

The burgeoning demand for solar panels is observed to be a key driver of the wafer cutting fluids market. The continuous rise in the demand for solar panels has resulted in an accompanying need for advanced and efficient wafer manufacturing processes that incorporate wafer cutting fluids. This surge in solar panel production is primarily attributed to various factors such as technological advancements, government subsidies, and the increasing focus on renewable energy sources as a means of mitigating environmental issues and promoting sustainable practices.

Advancements in alternative cutting technologies present a potential challenge to the wafer cutting fluids market. These new technologies could disrupt the market by offering more efficient and cost-effective solutions for wafer cutting. Increasing focus on environmental sustainability, the products in the market offering less sustainable solutions or manufacturing processes associated therein could impact the market during 2023-2030.

Cutting fluids could pose hazards either due to the specific constituents that are contained within the fluid or as a result of contaminants that water-based cutting fluids may accumulate during manufacturing processes. Certain constituents present in cutting fluids may have adverse effects on both the environment and individual health.

Segmentation Analysis

The global market is segmented based on product, application, and geography.

By Product Type

Based on product type, the wafer cutting fluids market is categorized into water-soluble and water-insoluble fluids. In 2022, water-soluble products substantially dominated the revenues accruing more than 50% of the segment’s revenue. The ability of the product to easily dilute with water is observed to be the greatest driver for the dominance and high demand for water-soluble products. It is cost-effective as the complete product is not directly utilized in wafer cutting and related processes.

Water-soluble cutting fluids help reduce waste and pollution, as they are easier to dispose of and are less harmful to the environment in comparison with other related fluids. It is estimated that water-soluble products would dominate the segment throughout the forecast period along with the highest CAGR of 5.3% while water-insoluble products are estimated to observe a steady growth rate of over 4.2%.

By Application

Based on application, the wafer cutting fluids market is further categorized into semiconductors, solar wafers, and others. In 2022, semiconductor applications held the largest revenue accounting for more than 53%. Wafer cutting fluids are an essential component of the semiconductor manufacturing process. These fluids are used to lubricate the cutting tools and improve the quality of the wafer surfaces after cutting. Different types of cutting fluids are used depending on the specific application and requirements of the manufacturing process.

Thus, increasing market demand for semiconductors has directly augmented the demand and production of these fluids. Other applications are estimated to gain traction during 2023-2030 owing to technological developments and the entry of new-end users such as machinery and equipment manufacturers operating in aerospace, medical devices, and precision engineering sectors.

Wafer Cutting Fluids Market Regional Analysis

Based on regional analysis, the global market report is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

The Asia Pacific Wafer Cutting Fluids Market share stood around 54.53% in 2023 in the global market, with a valuation of USD 929.5 million. Asia Pacific accounted for more than 50% of the global revenue. The presence of these manufacturers in Taiwan and China along with the increasing demand for semiconductors is observed to be the driving factor for the market.

• Taiwan accounts for approximated 50% of the world’s semiconductor manufacturing capacity followed by China. Therefore, Asia Pacific is estimated to observe the highest growth rate of 5.75% throughout the forecast period.

North America accounted for the second largest region accruing USD 454.7 million in terms of revenue in 2022. The U.S. is the prominent country having the most established market. However, the number of companies and the total production count lacks in comparison with Asia Pacific. North America accounted for an estimated revenue of USD 450 million in 2022. A significant rate of adoption and penetration of new technologies in different industry verticals is predicted to further drive the wafer cutting fluids market share during 2023-2030.

Competitive Landscape

The wafer cutting fluids market report will provide valuable insight with an emphasis on the global market which is highly fragmented. Major players are focusing on a few of the strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion & investments involve investments in R&D, new manufacturing facilities, and supply chain optimization. 

List of Key Companies in Wafer Cutting Fluids Market

• Evonik Industries AG,
• Momentive
• Exxon Mobil Corporation
• Dynatex International
• Keteca Singapore (Pte) Ltd.
• BASF SE
• SINO-JAPAN CHEMICAL CO., LTD.
• UDM Systems®, LLC

Key Industry Developments

• March 2022 - The launch of the TEGO Surten E-portfolio by Evonik in China is a growth strategy, which focuses on developing high-value products. The company aims to remain at the forefront of the market, driving innovation and delivering significant value to the global solar energy sector.

The Global Wafer Cutting Fluids Market is segmented as:

By Product Type

• Water-Soluble
• Water-Insoluble

By Application

• Semiconductor
• Solar Wafer
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America