According to the report, the global compound semiconductor materials market is likely to grow from USD 48.1 Billion in 2025 to USD 96.4 Billion in 2035 at a highest CAGR of 7.2% during the time period. The compound semiconductor materials market is booming globally with faster adoption in 5G, electric vehicles (EVs), power electronics, and photonics. Semiconductor devices based on GaN and SiC are becoming popular in high-efficiency power devices and RF applications of the next generation.
In March 2025, Wolfspeed, Inc. announced the capacity scaling with 200 mm SiC wafer manufacturing in North Carolina to address the increasing EV inverter and fast-charging infrastructure demand, which the industry is trying to scale capacity. At the same time, II-VI Incorporated introduced GaN-on-SiC substrates to deploy in 5G base stations in April 2025, with a higher frequency and efficiency requirement.
SEMI record shipments of compound semiconductor wafers in industry association data reflect increasing demand in telecom, automotive, and renewable energy sectors in 2024. The trends show that market is being propelled by the fact that technology is improving, more people are utilizing it in high growth industry, and more people are expanding their capacities, all leading to improved energy efficient and fast electronics that involve compound semiconductors.
“Key Driver, Restraint, and Growth Opportunity Shaping the Global Compound Semiconductor Materials Market
The compound semiconductor materials market is being driven by the growing demand of electric vehicles and high-efficiency power electronics. Infineon increased its production of SiC MOSFETs in February 2025 to supply EV inverters, with Infineon noting that the emphasis on automaker energy efficiency and performance is driving this need, and that manufacturers are now demanding semiconductor materials based on GaN and SiC.
Costs of manufacturing and complicated fabrication processes still limit growth in the market. In early 2025 an unresponsiveness at the SiC wafer plant of Sumitomo Electric Japanese, restricted the manufacture of high-quality compound semiconductor substrates on large scales, restricting instantaneous provision, and hampering application in cost-sensitive uses.
Compound semiconductors have a great opportunity with the expansion of 5G networks and the next generation RF devices. As an example of how telecommunications growth opens new market opportunities to high-performance compound semiconductor materials, in March 2025, II-VI Incorporated announced GaN-on-SiC wafers optimized to support 5G base stations, with higher frequencies and lower energy usage.
“Tariff Policies Driving Supply Chain Realignment in Compound Semiconductor Materials Market”
Regional Analysis of Global Compound Semiconductor Materials Market
Prominent players operating in the global compound semiconductor materials market are Coherent Corp., Analog Devices, Inc., Broadcom Inc., Wolfspeed, Inc., Epistar Corporation, GaN Systems, Infineon Technologies AG, IQE plc, MACOM Technology Solutions, Mitsubishi Electric Corporation, Murata Manufacturing Co., Ltd., Navitas Semiconductor, NXP Semiconductors N.V., ON Semiconductor Corporation, Qorvo, Inc., Showa Denko K.K., Siltronic AG, Skyworks Solutions, Inc., STMicroelectronics N.V., Sumitomo Electric Industries, Ltd., Texas Instruments Inc., Toshiba Corporation, Xiamen Powerway Advanced Material Co., Ltd., and Other Key Players.
The global compound semiconductor materials market has been segmented as follows:
Global Compound Semiconductor Materials Market Analysis, by Material Type
Global Compound Semiconductor Materials Market Analysis, by Product Type
Global Compound Semiconductor Materials Market Analysis, by Device Type
Global Compound Semiconductor Materials Market Analysis, by Application Type
Global Compound Semiconductor Materials Market Analysis, by Deposition Technology
Global Compound Semiconductor Materials Market Analysis, by Technology Node
Global Compound Semiconductor Materials Market Analysis, by End-use Industry
Global Compound Semiconductor Materials Market Analysis, by Region
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