Ammonia (NH₃) for Semiconductor Market to Reach $1.8 Billion by 2025 Amid Rising Demand for Ultrapure Materials

Surging semiconductor fabrication and technological advancements drive the global ammonia (NH₃) market, forecast to grow at a CAGR of 6.9% through 2025.

The global Ammonia (NH₃) for Semiconductor market is projected to reach $1.8 billion by 2025, up from an estimated $1.3 billion in 2024, expanding at a compound annual growth rate (CAGR) of 6.9%. This growth is driven by the increasing need for ultrapure ammonia used in the production of advanced semiconductor devices, particularly in chemical vapor deposition (CVD) and nitridation processes. Strong demand from leading chip manufacturing regions—South Korea, Taiwan, the U.S., and Japan—is accelerating adoption, especially as the global race for high-performance computing, AI, and automotive chips intensifies.

Applications in Wafer Cleaning and Deposition Processes Fuel Market Expansion

Two key segments are contributing to the robust demand for semiconductor-grade ammonia: wafer surface treatment and thin film deposition. Ammonia is widely used in cleaning processes to remove metal and organic contaminants, crucial for maintaining nanoscale precision. Additionally, its role in forming nitride layers (e.g., GaN, AlN) in transistor and LED fabrication continues to grow, particularly in next-generation 5G and power electronics applications. The expansion of foundry and logic chip production, alongside increasing R&D investments in compound semiconductors, is further supporting demand.

Price Trends Reflect Supply Chain Adjustments and Purity Requirements

Ammonia prices for semiconductor use showed a moderate increase from 2024 to 2025, with ultrapure NH₃ in Japan rising by approximately 4.2%, and South Korea experiencing a 3.7% hike. These increases are primarily attributed to stringent purity standards, higher purification costs, and regional transportation bottlenecks. Meanwhile, Taiwan saw a more stable price change of 2.1%, supported by strategic supply agreements with domestic chemical manufacturers. The market’s reliance on stable, ultra-high purity (UHP) supply chains remains a critical price determinant.

Key Players Shaping the Competitive Landscape

Prominent suppliers in the ammonia-for-semiconductor space include Air Liquide (France) and Linde plc (UK/Germany), known for their extensive global gas networks and semiconductor-grade offerings. In Asia, Taiyo Nippon Sanso (Japan) and SK Materials (South Korea) play key roles in providing localized UHP ammonia solutions. Meanwhile, Versum Materials (U.S.), now part of Merck KGaA, continues to innovate in ammonia purification technologies tailored for advanced node manufacturing.