Thin Films: Raw Materials, Technology and Applications

Report Highlights

• The worldwide market for thin film raw materials is estimated at $7.1 billion in 2004 and is projected to reach $13.5 billion by 2009, rising at a healthy AAGR (average annual growth rate) of 13.7%.
• Chemical processes accounted for more than 70% of the market, driven by sales of plating chemicals. Materials for chemical processes are expected to rise at an AAGR of 12.9% to $9.3 billion by 2009.
• Raw materials for physical processes were a $2 billion market in 2004 and will expand at an AAGR of 15.7% to $4.2 billion by 2009.
• Market drivers include technical advancements and versatility, miniaturization, material and equipment availability and increasing penetration in developing countries.

INTRODUCTION

Thin film technologies continue to evolve and their use is broadening. In fact, with the growing need for component and assembly miniaturization, well established thick film processes are rapidly approaching their technological limits. As a result, more and more manufacturers of electronic, mechanical, chemical, optical and energy supply devices now are considering replacing conventional thick film processes with thin film technologies to manufacture smaller components and parts. In addition, thin film technology allows the creation of new families of products, modifying and enhancing the properties of bulk material by deposition of a top thin layer having different composition and morphology.

This BCC study supplies an updated review of the technologies used in the fabrication of thin film devices, outlines the various applications of these technologies, identifies the most common raw materials used for each thin film deposition process and evaluates worldwide markets for thin film raw materials. The report also assesses the thin film industry’s growth potential over a five-year period through 2009. Particular focus is placed on investigating emerging thin film technologies, applications and materials, and the way they will affect the market. The result is a comprehensive market analysis of the thin film industry at the present time and an outline of its future direction.

SCOPE OF STUDY

The report contains:

• An updated and comprehensive review of conventional and innovative thin film technologies
• A detailed analysis of raw materials markets by technology type
• Worldwide market analysis for thin film raw materials by types of materials and applications, with forecasts through 2009
• A detailed analysis of the industry’s structure worldwide, including leading manufacturers and their products, company profiles and relative market share of the top 25 players
• An analysis of worldwide research and development activities
• An extensive U.S. patent analysis and examples of significant patents.

METHODOLOGY

BCC, Inc.'s market analysis is divided into five parts.

In the first, a summary of the overall worldwide thin film industry is performed and global raw materials revenues (sales data in millions of dollars) are presented for each type of process and by application. Actual data refers to 2002 and 2003 with estimated data for 2004. Forecasts for the period 2004 through 2009 are supplied (in current U.S. dollars).

The second part of the report entails a detailed analysis of the raw materials market by technology type. This section provides an updated and comprehensive review of conventional and innovative thin film technologies. For each technology, there is a description of the process and the raw materials used for formation of the thin film. In addition, the report report_highlightss various devices fabricated using each technology and outlines the most important technological developments and improvements to date.

After raw materials have been identified for each thin film technology, a worldwide market analysis is performed. The market for thin film raw materials is studied by type of materials (such as pure elements, metals, organic compounds and inorganic compounds), and by applications (such as electronics, mechanical, chemical and energy supply). Sales data are reported for the period 2002 to 2004 with forecast AAGR% (average annual growth rate) for the period 2004 to 2009. Geographic distribution of raw material sales for the same period is also discussed in this section.

In the third part, covering worldwide industry structure, a list of the leading manufacturers of thin film raw materials and a description of their products are supplied. The analysis includes descriptions of the geographic distribution of raw materials suppliers and an evaluation of raw materials availability, production and consumption, always from a geographic standpoint. Detailed company profiles and relative market share of the top 25 players are also offered.

In the fourth part of this study, an analysis of industry competitiveness is performed which encompasses a review of worldwide research and development activities, divided by region, and an outline of the most critical factors contributing to industry competitiveness.

The fifth and final section includes an extensive U.S. patent analysis and examples of significant patents.

INFORMATION SOURCES

To perform this study, BCC analyzed 337 manufacturers of raw materials, accounting for at least 90% of the worldwide thin film raw materials market. Data for each company were obtained by thoroughly analyzing SEC filings, Internet Web sites, annual reports, industry directories, industry magazines, government sources and other public sources. In some cases, data were obtained directly from the manufacturers.

Specifically, the most relevant sources of information include:

• EDGAR - U.S. Securities and Exchange Commission filings
• U.S. Patent and Trademark Office
• company Web sites
• company annual reports
• Thomas Register
• Moody's Directory
• S & P industry survey
• Dun & Bradstreet directory
• American Ceramic Society annual meeting abstract
• foreign chamber of commerce directories
• foreign stock exchange listings.

ANALYST CREDENTIALS

Margareth Gagliardi has more than 20 years' experience in the field of advanced materials, specializing in ceramic formulations, materials processing and new product development. She has held management positions in both manufacturing and R&D with U.S. and European firms producing electronic, mechanical, chemical and structural components. She holds a B.S. in Chemical Engineering and an M.S. in Ceramic Engineering.