High-purity electronic-grade phosphoric acid is used in semiconductor manufacturing, electronics etching and cleaning, and other applications. It is a commonly used wet etching agent in compound semiconductor processing. The product also finds applications in the preparation of special high-purity phosphates and organic phosphorus products. The strong presence of the electronics industry and increasing investments in semiconductor manufacturing are among the factors contributing to the growing US high-purity electronic-grade phosphoric acid market size. The US has a vibrant and dynamic electronics manufacturing industry with a long history of innovation and resiliency.
The US high-purity electronic-grade phosphoric acid market report includes company positioning and concentration to evaluate the performance of players in the market. Manufacturers operating in the US high-purity electronic-grade phosphoric acid market produce high-purity electronic-grade phosphoric acid by using different methods—wet process, thermal process, and furnace process; the wet process is the most commonly used method. 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. The production of higher-purity phosphoric acid, including electronic-grade phosphoric acid, includes additional purification steps. Further, the phosphoric acid purification process consists of several removal steps that are put in sequence to achieve the target quality.
One of the major factors driving the growth of the US high-purity electronic-grade phosphoric acid market is the increasing investments in semiconductor manufacturing. The government of the US strives to boost domestic semiconductor manufacturing by allocating vast amounts to the electronics & semiconductor sector. The US semiconductor industry aims to increase its share in the global chip market to 20% by 2030. As the country grapples with an ongoing chip shortage, 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. This financial aid included US$ 39 billion earmarked for manufacturing incentives, US$ 13.2 billion for research and development and workforce training, and US$ 500 million for the security of international information communications technologies and semiconductor supply chain activities. Several prominent companies have announced significant investments in the US manufacturing sector in the past. For instance, Taiwan Semiconductor Manufacturing Company committed at least US$ 12 billion to build a semiconductor fabrication plant in Arizona, with the expected commencement of production in 2024.
Another major factor driving the growth of US high-purity electronic-grade phosphoric acid market is the strong presence of the electronics industry. This industry is the heart of innovation in every sector of the US economy. For example, smartphones are used for multiple purposes, ranging from the primary applications of calling and messaging to commercial applications such as ordering groceries for home delivery and making online payments or transactions. They are also used to keep track of health by connecting wearable devices to them via Bluetooth or other connectivity technologies. The proliferation of high-speed internet technologies and the growing availability of 5G-compatible smartphones also propel the sales of smartphones in the US. Robots are transforming the warehouse and delivery industries. Various cutting-edge medical diagnostic equipment types are contributing to improving and saving lives. Electronic manufacturers in the US are also empowering the next wave of electric vehicles, autonomous robots, and confidential defense technologies through their R&D and manufacturing capabilities. According to IPC International, Inc., nearly 80% of electronics manufacturers operational in the US are small and medium-sized businesses. Economic activities by these businesses drive innovation, output, and jobs in adjacent industries such as aerospace, automotive, medical, and defense.
IPC International, Inc. emphasizes the fact that the electronics manufacturing sector accounts for roughly US$ 308 billion as a direct contribution to the US GDP (i.e., 4.6% of the GDP) and employs over 1.3 million candidates (i.e., 0.7% of the total employment). The consumer electronics industry is a significant segment of the retail market in the US, offering a wide range of goods that satisfy the needs of various consumer groups. In 2020 and 2021, the country experienced an elevated demand for consumer electronics as the COVID-19 pandemic, along with the subsequent adoption of remote work and education models as well as lockdowns, resulted in the need for better communications and entertainment devices, including laptops, mobile devices, TVs, and home entertainment systems. In the electronics industry, high-purity electronic-grade phosphoric acid is used in applications such as semiconductor manufacturing, and electronics etching and cleaning. Thus, the strong presence of the electronics industry in the US results in a huge demand for high-purity electronic-grade phosphoric acid, thereby fueling the growth of US high-purity electronic-grade phosphoric acid market.
However, the high reliance on imports for high-purity phosphoric acid hinders the US high-purity electronic-grade phosphoric acid market growth. In the US, the wet process is highly used for the production of phosphoric acid. However, this process results in much smaller quantities of purified phosphoric acid, i.e., only ~10% of total production. The majority of domestically produced phosphoric acid in the US is used in fertilizer production. This results in the insufficiency of high-purity phosphoric acid for other end users, leading to an increase in reliance on its import from other countries.
Further, the focus on adopting sustainable practices is emerging as one of the significant US high-purity electronic-grade phosphoric acid market trends. Various manufacturers operating in the phosphoric acid market are focusing on increasingly adopting sustainable practices, such as developing and adopting cleaner production processes, minimizing waste, and recycling by-products. Companies in the market are increasingly recognizing the need for sustainable practices to lower their environmental footprints and ensure long-term viability. Manufacturers emphasize on improving the efficiency of existing production processes by adopting practices aligned with water conservation, energy efficiency, and waste minimization strategies. Also, implementing a closed-loop system to recycle by-products helps to minimize waste generation. Thus, the growing focus on adopting sustainable practices is a notable trend in the US high-purity electronic-grade phosphoric acid market.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 78.73 Million |
| Market Size by 2031 | US$ 112.21 Million |
| Global CAGR (2023 - 2031) | 4.5% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Application
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| Regions and Countries Covered | United State
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| Market leaders and key company profiles |
The List of Companies - Us High-purity Electronic-grade Phosphoric Acid Market