Advanced packaging demands are driving consistent growth in semiconductor material demand, with distributors reporting strong contributions from the sector. Demand for high-end materials is expected to soar as manufacturers prepare for 2nm technology mass production in 2025. The acceleration in the global expansion of wafer fabs is prompting material distributors to explore international markets and expand their market presence.
Advanced packaging materials, particularly CoWoS thick-film photoresist, have generated robust sales and shipments for key players like Topco Scientific Co. (TSC) and Wah Lee Industrial Corp., fueled by the growing need for high-end chips.
Record growth marks TSC's advanced semiconductor success
TSC achieved unprecedented performance in 2024, driven by strong demand for advanced semiconductor processes. The company set new records in December, the fourth quarter, and annual revenues, establishing new benchmarks across the board.
In December 2024, TSC posted a record NT$5.45 billion (US$164.7 million) in consolidated revenue, up 4.4% from the previous month and 38.7% compared to the same period last year. Fourth quarter revenue reached NT$15.91 billion, a 3.5% increase from the third quarter and 30% growth compared to the same period last year. Full-year revenue for 2024 hit NT$57 billion, reflecting 15.7% annual growth and marking a historic high.
2nm advancement drives material demand surge
With major wafer foundries set to increase advanced process output in 2025, consumable material demand is expected to surge. Encouraging developments in 2nm technology indicate a trial production phase in early 2025, further driving material needs and boosting operational performance for suppliers.
Wah Lee leverages photoresist dominance for revenue gains
Wah Lee holds a competitive edge in the photoresist market as the exclusive distributor for JSR in Greater China, a region dominated by Japanese leaders JSR and Shin-Etsu Chemical.
The company has benefited from the timely progress of 2nm technology and rising demand for AI servers and edge computing, which has spurred growth in photoresist and advanced process materials.
In December 2024, Wah Lee posted NT$6.39 billion in revenue, down 11.2% from the previous month but up 20.9% compared to the same period last year. Fourth quarter revenue hit NT$20.21 billion, a 5.6% quarterly decline but a 17.3% annual increase. For 2024, Wah Lee's total revenue rose 19.8% to NT$80.03 billion, with contributions of 38% from ICT, 26% from semiconductors, and 29% from optoelectronics.
Supply chain expansion meets global demand
In Taiwan, material distributors anticipate steady growth in demand as major customers sustain full utilization of advanced process capacities, ensuring a stable supply chain for semiconductor materials.
Globally, SEMI projects the construction of 18 new wafer fabs in 2025, comprising three 8-inch and fifteen 12-inch facilities. Most are expected to begin operations and mass production by 2026–2027, further boosting material demand.
Material distributors are strengthening their global presence, setting up operations in key markets like the US, Europe, and Japan to align with major customers. In China, the ramp-up of mature process capacities is expected to sustain demand growth for ICT-related materials.
TSC has announced plans to establish a European logistics center, with significant progress anticipated by late 2025, enhancing its global supply chain capabilities.
Wah Lee has built a strong international presence with operations in the US, Japan, Singapore, and Malaysia. In Europe, the company manages electronics-related businesses worth over NT$10 billion and plans to expand its semiconductor footprint to support major customers' evolving needs.
As supply chain diversification becomes increasingly critical, material distributors are adopting multi-regional strategies to mitigate risks. The growing production capacity across various markets has made alignment with the overseas expansion of wafer foundries crucial for maintaining competitiveness.
Article translated by Levi Li
