Americas Logic IC Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 9.69 % |
| Market Concentration | Medium |
Major Players_Market.webp)
*Disclaimer: Major Players sorted in no particular order |
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Americas Logic IC Market Analysis
The Americas Logic IC Market was valued at USD 41.14 billion in the previous year. It is expected to register a CAGR of 9.69%, reaching USD 49.40 billion over the forecast period. Logic semiconductors process the digital data for controlling the operation of the electronic systems. Digital circuits are often built from small microelectronic circuits, also called logic gates, and they can be easily used to create combinational logic.
Logic chips have a wide range of applications in almost every digital product ranging from smartphones to arithmetic-logic units (ALU). In recent years, the automotive and smartphone industry's growth has mainly driven the logic semiconductor component's growth. Logic accelerators play a significant role in AI and HPC. By 2023, the shipments of AI edge processors are expected to cross 1.4 billion units globally. Such application growth, like HPC and AI, application growth further expands the logic components' scope.
The tech giants like Google, Apple, and Amazon are designing their own logic chipsLikemany tasks involving AI and server performance to lengthen battery life. Many companies optimize advanced logic technologies for mobile and HPC applications.
The electronics and semiconductor industries suffered significantly also invest the COVID-19 outbreak. Due to the increase in COVID-19 cases, businesses and manufacturing facilities across many countries closed down. Additionally, a partial or total lockdown disrupted the world's supply chain, making it harder for manufacturers to reach due to customers. The entire production process suffered a setback. However, the global standard logic IC market was anticipated to advance with the growth of the healthcare and automotive sector.
The COVID-19 pandemic influenced society and the global economy. The closure of manufacturing facilities in the regions resulted in a significant loss of revenue and business under lockdown. Further, the COVID-19 pandemic has changed the production and manufacturing processes, resulting slight decline in the growth of the logic IC market.
Since the beginning of 2021, the concern over the shortage of semiconductor chips spread across the global supply chains. A significant factor responsible for this supply shortage includes under-investment in wafer capacity (especially in matured nodes of logic Ics) during 2015-2019, supply chain disruptions due to COVID-19 and the US-China trade war, and a surge in demand from various applications.
However, the Logic IC market grew in the region owing to the increasing requirements of ICs for 5G technology by smartphones. Logic ICs are used to manufacture wired communication devices such as switches, adapters, and controllers. Logic ICs used in wireless local area network adapters, mobile Wi-Fi chips, Bluetooth transceivers, global positioning system receivers, near-field communication chips, and other devices are wireless communication semiconductors.
The development and growing demand for wireless technology to establish fast connections between devices are expected to increase the demand for Logic IC in the market. Furthermore, manufacturing the growing adoption of IoT, deploying significantly impacted the growth of smart devices, and increasing demand for high-performance computing is expected to promote the growth of Logic IC markets in the region.
Americas Logic IC Market Trends
Growing Adoption of Logic IC in Automotive Industries
To keep drivers safe, integrated circuits are used in vehicles. ICs improve connectivity driving and safety innovation among drivers, which is expected to fuel their market demand. The rapid electrification of vehicles is driving the growth of the automotive IC market. The increasing demand for electric vehicles worldwide, because of rising consumer awareness about environmental pollution and rising oil prices, is influencing semiconductor demand and has led the market of logic IC to grow.
Some of the key drivers of the market include increased vehicle production, rising demand for electric vehicles, and the growing need for electronics in vehicles to enhance their features. Additionally, several technological advancements, such as the implementation of IoT and favorable government standards to produce autonomous, connected, and low-emission vehicles, are further fuelling the demand for logic ICs in the market during the forecast period.
Further, the automotive industry is regularly looking forward to wide-scale electrification and advancements. The introduction of smart connected tech and autonomous features are also driving the demand for the implementation of semiconductors. Hence, the increased use of circuitry, MPUs, and sensors directs the increased deployment of standard logic ICs for power regulation and rectification.
The new-age technology catering to safety and modification of ride dynamics is aggressively increasing the use of semiconductors in passenger vehicles. To meet safety norms like airbags, autonomous features, and electronic stability control (ESC) programs, companies follow strict regulations on the circuit level and use one of the best logic ICs available. For instance, companies like Texas Instruments (TI) offer automotive logic devices compliant with the AEC-Q100 standard. The ICs support a wide range of supply voltages, ranging between 5V and 1.2V, to meet the requirements of any automotive system, including infotainment systems, body control modules, automotive lighting, and advanced driver assistance systems (ADAS).
Moreover, IoT Services and remote access features like geofencing, telematics, fleet management systems, autonomous and semiautonomous driving assists, in-vehicle infotainment, and other SIM-based utilities are taking the automotive sector towards dense communication applications. This encourages the deployment of communication modules and more sensors to provide detailed schematic input parameters for further processing. The modules and sensors use logic ICs extensively to maintain electrical safety standards and power efficiency, especially in electric vehicles.
Furthermore, as the world is shifting toward Electric Vehicles (EVs), the requirement of extensive regulation of electrical parameters invites logic gate ICs for safer implementation of the charging and discharging technologies. Automotive companies utilize the potential and wide range of voltage handling capabilities of logic ICs through the vehicles and final deployment stages and charging infrastructure. These factors drive the innovation and advancement in the standard logic IC industry to optimize power consumption, operating voltages, and scaling properties.
Increasing Demand For Consumer Electronics Promote Market Growth
The electronic component market has encountered robust growth in the past few years owing to its expanding application areas. This growth is significantly contributed by the increase in consumer electronics products such as DVDs, TV, mobile phones, etc., and office automation products such as computers, printers, etc. This high growth has forced several companies in this industry to set up novel manufacturing facilities and expand their production capacity. Furthermore, continuous technological advancements are expected to boost the application areas of standard logic ICs, thus driving the growth of the consumer standard logic ICs market in the coming years.
The growth of the consumer standard logic devices market has arisen from the advancements made in the packaging of modern, low-power logic products. The standards underlying configuration and functionality have grown simultaneously. Electronics manufacturers constantly seek to leverage the underlying technologies for designing logic ICs.
Consumer electronics significantly contribute to the market growth of communication standard logic IC. Manufacturers in the consumer electronics industry increasingly emphasize creating devices that use the least amount of power possible while still providing the required performance in a compact design. The increased emphasis on device integration is therefore anticipated to fuel the market for logic ICs.
The increasing demand for smartphones, laptops, and tablets, and internet penetration worldwide due to the adoption of work-from-home and learn-from-home culture during the COVID-19 pandemic, has further led to demand for advanced semiconductor components. The advent of 5G has led to significant demand for 5G-enabled mobile phones worldwide. Thus, the growing demand for mobile phones is anticipated to drive the demand for advanced chips, such as standard logic ICs, during the forecast period.
With the ecosystem of connected devices flourishing, applying logic ICs in smartphones is projected to boost the adoption rate. The United States is one of the major countries in the region, driving the adoption of connected devices and supporting the adoption of the technology. For instance, according to the Consumer Technology Association (CTA), and the US Census Bureau, the sales value of smartphones sold in the United States is forecasted to increase from USD 73 billion in 2021 to USD 74.7 billion in 2022. Such trends in the market are expected to further emphasize the adoption of logic ICs for various applications in the consumer electronics industry during the forecast period.
Americas Logic IC Industry Overview
The Americas Logic IC Market is moderately concentrated, with significant players like Analog Devices INC., Intel Corporation, Texas Instruments Incorporated, Advanced Micro Devices, Inc, and Broadcom Inc., among others. Players in the market are adopting various strategies such as partnerships, mergers, collaborations, innovations, and acquisitions to enhance their product offerings and gain a sustainable competitive advantage.
In February 2023, Fortinet launched its FortiSP5 application-specific integrated circuit (ASIC) technology as a tool to 'deliver significant secure computing power advantages over traditional CPU and network ASICs,' The company also plans to integrate FortiSP5 into its next generation of entry and mid-range FortiGate firewalls, which is planned for launch later this year.
In April 2022, Intel launched its new Intel Blockchain ASIC (application-specific integrated circuit), delivering energy-efficient hashing for proof-of-work consensus networks. Intel's Blockchain ASIC would also provide proof-of-work algorithms compatible with ASIC-based systems and SHA-256 hashing the computing power and the energy efficiency needed to achieve sustainability and scalability.
Americas Logic IC Market Leaders
Analog Devices INC.
Intel Corporation
Texas Instruments Incorporated
Advanced Micro Devices, Inc
Broadcom Inc.
*Disclaimer: Major Players sorted in no particular order
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Americas Logic IC Market News
- October 2022: The Biden administration issued a new set of export controls. As per the new set of regulations, the US would be cutting China off from certain semiconductor chips made anywhere in the world with US equipment to slow down Beijing's technological and military advances. Such regulations are expected to further influence the demand for Logic ICs in the market.
- September 2022: The US Department of Commerce revealed its strategy to implement USD 50 billion from the bipartisan CHIPS Act of 2022. The act aims to reduce dependency on Asian Manufacturers and revitalize the domestic semiconductor industry to spur innovations in the country. As part of the strategy, the CHIPS incentives program will provide three-quarters of the incentives funding of around USD 28 billion to establish a domestic production facility for logic and memory chips. In addition, the Department also aims to seek proposals for the expansion or construction of manufacturing facilities to package, assemble, fabricate, and test the critical components and enhance the supplier ecosystems. Further, the Chips research and development program is expected to invest USD 11 billion in a National Advanced Packaging Manufacturing Program, a National Semiconductor Technology Center, and NIST metrology research and development programs. This is expected to create a network of innovation for the semiconductor ecosystem in the United States of America.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness- Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitutes
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Focus on Integration of Devices
5.1.2 Rising Capital Spending by Fabs to Increase Production Capacities
5.2 Market Challenges
5.2.1 Complex Fabrication Process owing to the Decreasing Chip Size
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Logic Standard
6.1.2 MOS Special Purpose Logic
6.2 By Product Type
6.2.1 ASIC
6.2.2 ASSP
6.2.3 PLD
6.3 By Application
6.3.1 Consumer Electronics
6.3.2 Automotive
6.3.3 IT & Telecommunications
6.3.4 Manufacturing and Automation
6.3.5 Other End-user Industries (Healthcare, Aerospace & Defense, etc.)
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Analog Devices INC.
7.1.2 Intel Corporation
7.1.3 Texas Instruments Incorporated
7.1.4 Advanced Micro Devices, Inc
7.1.5 Broadcom Inc.
7.1.6 Cirrus Logic Inc
7.1.7 ON SEMICONDUCTOR CORPORATION
7.1.8 Microchip Technology Inc
7.1.9 Bourns, Inc.
7.1.10 Integrated Silicon Solution, Inc. ( ISSI)
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Americas Logic IC Industry Segmentation
A logic IC is a semiconductor device that implements a basic logical operation performed on one or more digital input signals to produce a digital output signal.
Americas Logic Integrated Circuit (IC) Market is segmented by Type (Logic Standard and MOS Special Purpose Logic), by Product Type (ASIC, ASSP, and PLD), and by Application (Consumer Electronics, Automotive, IT & Telecommunications, Manufacturing and Automation, and Other End-user Industries (Healthcare, Aerospace & Defense). The report offers the market size in value terms in USD for all the abovementioned segments.
| By Type | |
| Logic Standard | |
| MOS Special Purpose Logic |
| By Product Type | |
| ASIC | |
| ASSP | |
| PLD |
| By Application | |
| Consumer Electronics | |
| Automotive | |
| IT & Telecommunications | |
| Manufacturing and Automation | |
| Other End-user Industries (Healthcare, Aerospace & Defense, etc.) |
Frequently Asked Questions
What is the current Americas Logic IC Market size?
The Americas Logic IC Market is projected to register a CAGR of 9.69% during the forecast period (2024-2029)
Who are the key players in Americas Logic IC Market?
Analog Devices INC., Intel Corporation, Texas Instruments Incorporated, Advanced Micro Devices, Inc and Broadcom Inc. are the major companies operating in the Americas Logic IC Market.
What years does this Americas Logic IC Market cover?
The report covers the Americas Logic IC Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Americas Logic IC Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Americas Logic IC Industry Report
Statistics for the 2024 Americas Logic IC market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Americas Logic IC analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
