The Global Third Generation Semiconductor Material Market was valued at USD 985.6 Million in 2023 and is projected to reach USD 3.45 Billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 19.8% during the forecast period (2024–2030). This explosive growth is driven by the escalating demand for energy-efficient electronics, the global transition to electric vehicles (EVs), and the rapid deployment of 5G and renewable energy infrastructure, all of which rely on the superior properties of materials like Silicon Carbide (SiC) and Gallium Nitride (GaN).

As industries worldwide push for greater power efficiency, higher frequencies, and reduced carbon footprints, the spotlight is on the advanced material suppliers who are enabling this technological leap. In this blog, we profile the Top 10 Companies in the Third Generation Semiconductor Material Industry—a mix of chemical giants, specialized material scientists, and manufacturing pioneers shaping the future of power electronics and optoelectronics.

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🔟 1. BASF SE

Headquarters: Ludwigshafen, Germany
Key Offering: High-Purity Precursors, Epitaxy Materials, Ceramic Substrates

BASF is a global leader in the chemical industry with a significant and growing portfolio of materials for electronic applications. Their Electronic Materials division provides essential high-purity precursors and specialty chemicals used in the manufacturing of SiC and GaN substrates and epitaxial layers. BASF supports the entire semiconductor value chain, from raw material refinement to advanced packaging solutions.

Innovation and Strategic Focus:

• Development of next-generation precursors for Metal-Organic Chemical Vapor Deposition (MOCVD)

• Strategic collaborations with leading semiconductor foundries and device manufacturers

• Investment in R&D for sustainable and scalable production processes for wide-bandgap materials

Download FREE Sample Report: Third Generation Semiconductor Material Market – View in Detailed Research Report

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9️⃣ 2. Cabot Microelectronics

Headquarters: Aurora, Illinois, USA
Key Offering: CMP Slurries, High-Purity Silicon Carbide Powders

Cabot Microelectronics is a dominant force in the planarization technology critical for semiconductor manufacturing. The company’s advanced Chemical Mechanical Planarization (CMP) slurries are essential for achieving the ultra-smooth, defect-free surfaces required for high-performance SiC and GaN wafers. Their expertise in high-purity materials directly supports the scalability of third-generation semiconductor production.

Innovation and Strategic Focus:

• Leading provider of CMP solutions tailored for hard materials like SiC

• Continuous innovation in slurry formulations to improve yield and reduce manufacturing costs

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8️⃣ 3. DuPont (formerly DowDuPont)

Headquarters: Wilmington, Delaware, USA
Key Offering: High-Performance Polymers, Thermal Interface Materials, Packaging Solutions

DuPont’s Electronics & Industrial segment provides critical materials that enable the performance and reliability of power devices built on SiC and GaN. Their offerings include advanced thermal management materials, high-temperature encapsulants, and substrates that are essential for managing the high power densities and operating temperatures of these semiconductors.

Innovation and Strategic Focus:

• Development of novel packaging materials that enhance heat dissipation and device longevity

• Focus on materials for EV power modules, fast-charging infrastructure, and RF applications

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7️⃣ 4. Hemlock Semiconductor

Headquarters: Hemlock, Michigan, USA
Key Offering: Ultra-Pure Polycrystalline Silicon, Silicon-Based Precursors

As one of the world’s largest producers of hyper-pure polycrystalline silicon, Hemlock Semiconductor is a foundational player in the electronics supply chain. While traditionally serving the solar industry, their high-purity silicon is also a critical starting material for the production of high-quality SiC crystals, making them an essential enabler for the wider SiC ecosystem.

Innovation and Strategic Focus:

• Investing in purification technologies to meet the extreme purity requirements of semiconductor-grade SiC

• Expanding production capacity to support growing demand from both the PV and power electronics sectors

Download FREE Sample Report: Third Generation Semiconductor Material Market – View in Detailed Research Report

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6️⃣ 5. Henkel AG

Headquarters: Düsseldorf, Germany
Key Offering: Thermally Conductive Adhesives, Encapsulants, Underfills

Henkel provides advanced materials solutions that are critical for the assembly and reliability of power electronics. Their LOCTITE brand offers a range of thermally conductive adhesives, electrically insulating gap fillers, and robust encapsulants that protect sensitive SiC and GaN chips from thermal, mechanical, and environmental stress, ensuring long-term performance in demanding applications.

Innovation and Strategic Focus:

• Formulating materials capable of withstanding the high operating temperatures of SiC and GaN devices

• Developing solutions for double-sided cooling and advanced packaging architectures

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5️⃣ 6. Air Liquide SA

Headquarters: Paris, France
Key Offering: Ultra-High-Purity Gases, Precursor Chemicals for Epitaxy

Air Liquide’s Electronics division is a global supplier of specialty gases and advanced materials used in semiconductor manufacturing processes, including the epitaxial growth of SiC and GaN layers. Their high-purity silane, ammonia, and other precursor gases are vital for creating the high-quality crystalline structures necessary for high-performance devices.

Innovation and Strategic Focus:

• Development of safer and more efficient gas delivery systems for hazardous precursors

• Investing in the production and purification of gases specifically for wide-bandgap semiconductor fabrication

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4️⃣ 7. Avantor Performance Materials

Headquarters: Radnor, Pennsylvania, USA
Key Offering: Ultra-High-Purity Chemicals, Etchants, Cleaning Solutions

Avantor provides mission-critical products for the global life sciences and advanced technology sectors. Their J.T.Baker and Macron Fine Chemicals brands supply the ultra-high-purity acids, solvents, and etchants required for cleaning and patterning SiC and GaN wafers, where even minute impurities can severely impact device yield and performance.

Innovation and Strategic Focus:

• Specialized chemical formulations for etching hard materials like SiC

• Ensuring supply chain reliability and consistency for high-volume semiconductor manufacturing

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3️⃣ 8. Hitachi High-Tech

Headquarters: Tokyo, Japan
Key Offering: Electron Microscopes, Wafer Inspection Systems, Process Equipment

While not a material producer itself, Hitachi High-Tech is an indispensable enabler of the third-generation semiconductor industry. Their advanced metrology, inspection, and analysis equipment are used by material and device manufacturers worldwide to characterize defects, measure epitaxial layer thickness, and ensure the quality of SiC and GaN wafers, which is paramount for achieving high yields.

Innovation and Strategic Focus:

• Pioneering non-destructive testing methods for substrate and epi-layer quality control

• Developing automated defect inspection systems to support high-volume production

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2️⃣ 9. Honeywell Electronic Materials

Headquarters: Charlotte, North Carolina, USA
Key Offering: Interconnect Materials, Specialty Chemicals, Safety Solutions

Honeywell offers a broad portfolio of electronic materials that support the manufacturing and packaging of advanced semiconductors. Their products include interconnect materials for packaging, chemicals for wafer processing, and critical safety solutions for gas handling in fabrication plants, all of which are essential for the reliable production of power and RF devices based on third-generation materials.

Innovation and Strategic Focus:

• Focus on materials that enable miniaturization and improved thermal performance in power modules

• Providing integrated solutions for fab safety and chemical management

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1️⃣ 10. JSR Corporation

Headquarters: Tokyo, Japan
Key Offering: Photoresists, CMP Slurries, Packaging Materials

JSR is a leading global supplier of advanced materials for the semiconductor industry. Their comprehensive portfolio includes state-of-the-art photoresists for lithography, CMP slurries for planarization, and a range of materials for advanced packaging. These products are critical for patterning and processing the intricate structures of GaN RF amplifiers and SiC power MOSFETs.

Innovation and Strategic Focus:

• R&D in EUV photoresists and other materials for next-generation lithography nodes

• Strategic alliances with key semiconductor equipment manufacturers and foundries

Get Full Report Here: Third Generation Semiconductor Material Market – View in Detailed Research Report

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🌍 Outlook: The Future of Electronics is Built on Advanced Materials

The third-generation semiconductor material market is at the heart of the global technological transformation. While silicon continues to dominate digital logic, the unparalleled performance advantages of SiC and GaN in power conversion and high-frequency applications are driving a multi-billion-dollar materials revolution.

📈 Key Trends Shaping the Market:

• Electric Vehicle Proliferation: SiC inverters and onboard chargers are becoming standard in EVs, creating massive demand for high-quality substrates.

• 5G and RF Expansion: The rollout of 5G networks and the growth of satellite communication rely heavily on high-efficiency GaN RF power amplifiers.

• Renewable Energy Integration: SiC-based power electronics are crucial for increasing the efficiency of solar inverters and energy storage systems.

• Supply Chain Consolidation and Innovation: Major players are investing heavily in R&D and forming strategic partnerships to overcome manufacturing challenges like defect density and high wafer costs.

Get Full Report Here: Third Generation Semiconductor Material Market – View in Detailed Research Report

The companies listed above are not only supplying critical materials—they are building the foundation for a more efficient, connected, and sustainable electronic future.