1 Global High-purity Isopropyl Alcohol (IPA) for Semiconductor Market Size (Value) and CAGR (2024-2033)
In 2024, the global High-purity Isopropyl Alcohol (IPA) for Semiconductor market was valued at USD 163.47 million, with a CAGR of 13.1% from 2024 to 2033.
Isopropanol is an organic compound with a molecular formula of C3H8O. Isopropyl alcohol (IUPAC name propan-2-ol and also called isopropanol or 2-propanol) is a colorless, flammable chemical compound (chemical formula CH3CHOHCH3) with a strong odor. As an isopropyl group linked to a hydroxyl group, it is the simplest example of a secondary alcohol, where the alcohol carbon atom is attached to two other carbon atoms. It is a structural isomer of 1-propanol and ethyl methyl ether, also known as dimethyl methanol and 2-propanol. Also known as IPA in the industry.
High-purity Isopropyl Alcohol (IPA) for Semiconductor refers to ultra-clean high-purity reagents with a purity of over 99.9% that can be used in the semiconductor industry. The maximum impurity content is 0.01-10ppm, and some can be reduced to the ppb level. The metal impurity content is less than 1ppb, and the dust level reaches 0-2ppb. Usually used in semiconductor manufacturing, PCB cleaning, liquid crystal display cleaning, etc.
Figure Global High-purity Isopropyl Alcohol (IPA) for Semiconductor Market Size (M USD) and CAGR 2024-2033
2 High-purity Isopropyl Alcohol (IPA) for Semiconductor Market Drivers
One of the primary drivers is the increasing demand from the semiconductor industry, which relies heavily on high-purity chemicals for manufacturing processes. As semiconductor technology advances, the need for ultra-clean and high-purity reagents like IPA becomes more critical. High-purity IPA is essential for cleaning and etching processes in semiconductor manufacturing, where even minute impurities can significantly impact the performance and reliability of integrated circuits.
The rapid development of emerging technologies such as 5G, artificial intelligence, and the Internet of Things (IoT) also plays a crucial role in driving the market. These technologies require high-performance semiconductors, which in turn drive the demand for high-purity IPA. The growth of the semiconductor industry is directly linked to the expansion of these cutting-edge technologies, creating a continuous need for high-purity chemicals.
Another significant driver is the increasing investment in research and development within the semiconductor industry. Companies are constantly seeking to improve the efficiency and performance of their semiconductor products, which necessitates the use of high-purity chemicals. High-purity IPA is a key component in these efforts, as it helps ensure the highest possible quality in semiconductor manufacturing.
3 High-purity Isopropyl Alcohol (IPA) for Semiconductor Market Restraints
One of the primary challenges is the high concentration of the industry. The production of high-purity IPA requires advanced purification processes and significant technical expertise, creating high barriers to entry. This has resulted in a market dominated by a few major players, such as Tokuyama, LCY Chemical, and LG Chem. The high concentration can lead to market monopolies and restrict the growth of new entrants.
Another significant restraint is the potential health hazards associated with high-purity IPA. Isopropyl alcohol is slightly toxic, and its vapor can have anesthetic effects and irritate the mucous membranes of the eyes and respiratory tract. This poses risks to workers in production facilities and requires stringent safety measures. The handling and disposal of high-purity IPA must be carefully managed to avoid environmental and health issues, adding to the operational complexities and costs.
Economic uncertainties and fluctuations in the global market also pose challenges. The semiconductor industry, which is the primary market for high-purity IPA, is sensitive to economic conditions. Economic downturns can lead to reduced demand for semiconductors, which in turn affects the demand for high-purity IPA. Additionally, the petrochemical market, which supplies the raw materials for IPA, is subject to price volatility. Fluctuations in the prices of raw materials can impact the production costs and profitability of high-purity IPA manufacturers.
4 Global High-purity Isopropyl Alcohol (IPA) for Semiconductor Market Size and Share by Type in 2024
99.99% Purity IPA is the highest grade of IPA used in the semiconductor industry. This type of IPA has a purity level exceeding 99.99%, with impurities reduced to extremely low levels, often below 1 part per billion (ppb). The high purity ensures minimal contamination during critical manufacturing processes, making it ideal for applications where the highest level of cleanliness is required. This type of IPA is essential for processes such as photolithography, where any impurities can lead to defects in the final product. The high purity ensures that the IPA can effectively remove contaminants without leaving residues, thereby enhancing the yield and performance of semiconductor devices.
In 2024, the market revenue for 99.99% Purity IPA is forecasted to reach 78.02 million USD. This segment is expected to grow steadily due to its critical role in advanced semiconductor manufacturing processes, particularly in the production of high-performance integrated circuits (ICs) and other microelectronic devices.
<99.99% Purity IPA refers to IPA with a purity level slightly below the 99.99% mark. While still highly pure, this type contains slightly higher levels of impurities compared to the 99.99% purity IPA. It is used in applications where the highest level of purity is not absolutely necessary but still requires a high degree of cleanliness. This type of IPA is often used in less critical cleaning and etching processes in semiconductor manufacturing. For example, it is used in the cleaning of PCBs and LCD panels, where the requirements for purity are stringent but not as critical as those in semiconductor wafer cleaning.
The market revenue for <99.99% Purity IPA in 2024 is forecasted to be 85.45 million USD. This segment is also expected to grow, driven by the increasing demand for IPA in various semiconductor-related applications. The demand for this type of IPA is driven by the need for cost-effective solutions in applications where slightly lower purity levels are acceptable.
Table Global High-purity Isopropyl Alcohol (IPA) for Semiconductor Market Size and Share by Type in 2024
Type | Market Size (M USD) 2024 | Market Share 2024 |
99.99% Purity | 78.02 | 47.73% |
<99.99% Purity | 85.45 | 52.27% |
5 Global High-purity Isopropyl Alcohol (IPA) for Semiconductor Market Size and Share by Application in 2024
Semiconductor Manufacturing
In 2024, the revenue from high-purity IPA used in semiconductor manufacturing is forecasted to reach 93.67 million USD. This application is the most significant segment, accounting for the largest share of the market. High-purity IPA is crucial in processes such as photolithography, where it is used to remove photoresist residues and other contaminants from silicon wafers. The stringent purity requirements ensure that the IPA does not introduce any impurities that could affect the performance of the semiconductor devices.
PCB Cleaning
The revenue from high-purity IPA used in PCB cleaning is forecasted to be 46.72 million USD in 2024. PCBs require high-purity IPA for cleaning flux residues and other contaminants during the manufacturing process. The purity of IPA ensures that the cleaning process is effective without introducing new contaminants, which could affect the electrical performance of the PCBs.
LCD Cleaning
The revenue from high-purity IPA used in LCD cleaning is forecasted to be 14.43 million USD in 2024. LCD panels require high-purity IPA for cleaning during the manufacturing process, particularly for removing contaminants from glass substrates and other components. The high purity of IPA ensures that the cleaning process does not leave any residues that could affect the clarity and performance of the LCD panels.
Table Global High-purity Isopropyl Alcohol (IPA) for Semiconductor Market Size and Share by Application in 2024
Application | Market Size (M USD) 2024 | Market Share 2024 |
Semiconductor Manufacturing | 93.67 | 57.30% |
PCBs Cleaning | 46.72 | 28.58% |
LCD Cleaning | 14.43 | 8.83% |
Others | 8.65 | 5.29% |
6 Global High-purity Isopropyl Alcohol (IPA) for Semiconductor Market Sales (Tons) by Region in 2024
North America is a key market for high-purity IPA, with a forecasted sales volume of 14,234 tons in 2024. The region’s strong industrial base, particularly in the United States and Canada, supports a robust semiconductor manufacturing sector. North America benefits from advanced technological capabilities and stringent quality standards, which drive the demand for high-purity IPA in semiconductor manufacturing, PCB cleaning, and LCD cleaning processes. The presence of major semiconductor companies and research institutions further supports the market’s growth, ensuring a continuous demand for high-purity IPA.
Europe is another significant market, with a forecasted sales volume of 10,752 tons in 2024. The region’s industrial strength, particularly in countries like Germany, the Netherlands, and the United Kingdom, supports a thriving semiconductor industry. Europe’s market is characterized by high standards in manufacturing and quality control, which necessitate the use of high-purity IPA in various applications. The region also benefits from strong research and development activities, driving innovation and the adoption of advanced technologies in semiconductor manufacturing.
China, including Taiwan, is the largest market for high-purity IPA, with a forecasted sales volume of 63,722 tons in 2024. The region’s rapid industrial growth, particularly in the semiconductor and electronics sectors, drives the high demand for high-purity IPA. China’s market is characterized by a large number of semiconductor manufacturing facilities and advanced technology centers, which require high-purity IPA for various manufacturing processes. The region’s strong industrial infrastructure and government support for technological advancements further contribute to the market’s growth.
Figure Global High-purity Isopropyl Alcohol (IPA) for Semiconductor Market Sales (Tons) by Region in 2024
7 Major Players in Global High-purity Isopropyl Alcohol (IPA) for Semiconductor Market
7.1 Tokuyama
Company Profile:
Tokuyama Corporation, established in 1918, is a leading Japanese chemical company with a global presence. The company operates primarily in Japan and has manufacturing facilities strategically located to serve worldwide markets. Tokuyama’s business portfolio includes a diverse range of products, with a significant focus on high-purity chemicals for the semiconductor industry.
Business Overview:
Tokuyama’s main business fields encompass ICT, healthcare, and environmental solutions. The company is renowned for its high-purity semiconductor-grade polycrystalline silicon and other advanced materials used in semiconductor manufacturing. Tokuyama’s commitment to innovation and quality has positioned it as a top-tier supplier in the high-purity IPA market.
Product Introduction:
Tokuyama’s high-purity IPA, known as IPA SE, is specifically designed for the electronics industry. This product boasts a purity level of over 99.99% and is manufactured using a proprietary process that ensures minimal impurities. IPA SE is used in critical processes such as cleaning and drying of electronic devices, including semiconductors and glass substrates. Tokuyama’s global shipping bases in Japan, Taiwan, Singapore, and China ensure reliable supply to state-of-the-art semiconductor manufacturers.
Recent Financial Data:
In the most recent year, Tokuyama reported a revenue of 42.71 million USD from its high-purity IPA sales. The company achieved a gross margin of 32.58%.
7.2 LCY Chemical
Company Profile:
LCY Chemical, established in 1915, is a diversified multinational corporation with operations in Taiwan, China, the USA, and the Middle East. The company has expanded its business domains into chemicals, plastics, rubber, electronic chemicals, copper foil, and solar energy. LCY Chemical is known for its commitment to quality and innovation, focusing on high added-value products that meet industrial trends.
Business Overview:
LCY Chemical’s business portfolio includes a wide range of products used in healthcare, industry, and home applications. The company’s electronic-grade IPA is a key product, extensively used in high-tech industries such as IC, TFT-LCD, LED, and PV. LCY Chemical’s focus on sustainability and circular economy models has led to innovative recycling technologies that enhance its market position.
Product Introduction:
LCY Chemical’s electronic-grade IPA, known as EIPA 99.99%, is designed for cleaning applications in the semiconductor industry. This product meets the stringent purity requirements necessary for high-precision manufacturing processes. LCY Chemical’s advanced production techniques ensure that its IPA products are of the highest quality, making them suitable for critical applications in the electronics industry.
Recent Financial Data:
In the most recent year, LCY Chemical reported a revenue of 31.67 million USD from its high-purity IPA sales. The company achieved a gross margin of 34.64%.
7.3 LG Chem
Company Profile:
LG Chem, established in 1947, is a leading chemical company based in South Korea. The company operates globally, with a strong presence in the petrochemicals and advanced materials sectors. LG Chem’s commitment to innovation and quality has positioned it as a key player in the high-purity IPA market.
Business Overview:
LG Chem’s business portfolio includes a wide range of products, with a significant focus on petrochemicals and advanced materials. The company’s vertically integrated system, from basic raw materials to downstream products, ensures efficient production and high-quality output. LG Chem’s advanced technologies and focus on high-value added products have led to its strong market position in the semiconductor industry.
Product Introduction:
LG Chem’s high-purity IPA is designed for use in semiconductor manufacturing, PCB cleaning, and LCD cleaning. The company’s IPA products meet the stringent purity requirements necessary for high-precision manufacturing processes. LG Chem’s advanced production techniques and quality control measures ensure that its IPA products are of the highest quality, making them suitable for critical applications in the electronics industry.
Recent Financial Data:
In the most recent year, LG Chem reported a revenue of 11.74 million USD from its high-purity IPA sales. The company achieved a gross margin of 29.17%.