APAC Analog IC Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 7.42 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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APAC Analog IC Market Analysis
The Asia-Pacific analog IC market was valued at USD 55.8 billion in the previous year. It is expected to register a CAGR of 7.42%, reaching USD 86.91 by the end of the forecast period.
- An analog IC is a network of interconnected components manufactured over a single wafer of semiconducting material. These components operate over a continuous range of input signals in discrepancy to their counterpart digital circuits having only two input and output voltage levels.
- These ICs are used in various applications, including third and fourth-generation (3G/4G) radio base stations and portable device batteries. RFICs (radio frequency ICs) are analog circuits that usually run in the frequency range of 3 kHz to 2.4 GHz (3,000 hertz to 2.4 billion hertz) circuits that would work at about 1 THz (1 trillion hertz). They are widely used in cell phones and wireless devices.
- The Japanese telecommunications market is one of the biggest in the world by revenue, with few large fixed and mobile network operators that have invested heavily in towers and fiber infrastructure over the past two decades despite an overall market underpinned by low economic and population growth. 5G adoption is also attaining traction in the region, and the region strives to reach almost full 5G coverage by the end of 2030.
- However, while advanced integrated circuit technologies and many other factors help digital circuits to be reliable, lower in cost, and smaller in size, the lack of skilled engineers and the complexity of the designs can result in expensive analog circuits and restrict the market's growth.
- The COVID-19 outbreak across the world significantly disrupted the supply chain and production of the market in the initial phase of 2020. Many end-user industries in the market were also affected due to the pandemic. The pandemic significantly impacted the country's production of integrated circuits. For instance, in April 2022, China's monthly output of chips shrunk to its lowest level since 2020, as strict lockdowns in Shanghai and other cities disrupted production in downstream industries, from cars to robotics. The output of integrated circuits in April declined by 12.1% Y-o-Y to 25.9 billion units, the lowest since December 2020, according to the National Bureau of Statistics.
APAC Analog IC Market Trends
Surging Demand for Communication Devices Drives Market Growth
- In recent years, the emergence of different technologies, including smartphones, tablets, and various cloud-based services, has driven a steady increase in demand for faster and more pervasive personal mobile communication systems, which has resulted in the introduction of a growing variety of wireless base stations (BTS), creating the connection points between the mobile terminals and the main wired network.
- With the increasing investments in 5G, the number of 5G base stations is also rising in the region. For instance, according to the Ministry of Industry and Information Technology (MIIT), China aims to have 2 million installed 5G base stations by the end of 2022 to expand the country's next-generation mobile network. The Chinese mainland at the time has 1.425 million installed 5G base stations that support more than 500 million 5G users nationwide, making it the biggest network in the world, as per MIIT.
- The rapid growth of smartphones and smart home devices in the markets in recent years has fueled the demand for analog ICs in India and South Korea. The increasing adoption of the fifth-generation (5G) wireless technology for digital devices is also a major factor in the growing demand for connected devices and smart products, thereby increasing the need for the analog ICs used in these devices.
- As per the Korea Information Society Development Institute (KISDI), the ownership rate of smartphones in South Korea increased significantly to 92.7% in 2021 compared to 91.2% in 2020 and 89.6% in 2019. Such an increase in the adoption of smartphones in the region is expected to increase the demand for analog ICs in the market.
- According to the Ministry of Internal Affairs and Communications (Japan), there were over 45 million 5G subscriptions in the country in 2022. The domestic rollout of 5G networks by countries' major mobile carriers like KDDI, SoftBank, NTT Docomo, and Rakuten Mobile began in 2020 with an initial emphasis on urban areas. In addition, the Japanese government intends to reach a coverage of 95% of the population by March 2024. Such factors may play a significant role in driving the analog IC market in the region.
China to Hold a Significant Market Share
- China is among the top countries creating semiconductors and related devices and consumption. The government has noticed a boost in the electronics industry, particularly since the infamous trade dispute with the United States. Although the local analog IC design and manufacturing houses are still behind their international counterparts, the favorable industry regulations and growing focus of different industry stakeholders are anticipated to facilitate the industry's growth.
- In China, the automotive industry is among the leading market drivers for analog Ics. The fast growth of the new energy vehicle (NEV) in the domestic and international market and the growing demand for analog chips employed in automotive electronics are promoting the growth of the market. For instance, according to the China Association of Automobile Manufacturers (CAAM), in April 2022, China's new energy vehicle sales amounted to 299,000 units, of which 280,000 were electric passenger vehicles and 19,000 were commercial electric vehicles. Sales of passenger battery electric vehicles (BEVs) and passenger plug-in hybrid electric vehicles (PHEVs) were 212,000 and 68,000 units, respectively.
- The development of the automotive industry is driving the need for analog ICs, encouraging IC manufacturers to extend their production capacities further and design innovative solutions. For instance, in August 2022, analog IC foundry GTA Semiconductor started its capacity expansion project in the Lingang Special Area in the Shanghai Pilot Free Trade Zone. It plans to set up new production lines for automotive chips.
- The increasing penetration of 5G technology is driving the demand for 5G-enabled smartphones and supporting the digitization of other industries in the country. The high-speed data connectivity facilitated by 5G is expected to positively impact industrial automation and the adoption of advanced technologies such as AI, IoT, etc. As a broad range of electronic devices is used to establish such infrastructure, the demand for analog circuits is also expected to grow.
- China is also among the biggest manufacturers and consumers of consumer electronic products. According to China Customs, the country exported approximately USD 3.36 trillion in 2021, reporting a growth export value of about 30% compared to the previous year. As consumer electronics and other electrical products constitute a significant portion of the export value, the analog IC market is anticipated to notice sustained growth in the country.
APAC Analog IC Industry Overview
The Asia-Pacific analog IC market is moderately consolidated, with many companies supplying ICs, and few have a small market share. The companies enter strategic partnerships and develop new technologies to maintain their market share.
- November 2022 - Magnachip Semiconductor Corporation announced that it launched its first Power Management Integrated Circuit (PMIC) for IT devices equipped with OLED screens, a core component to supply power to electronic devices. It plays an essential role as the battery life of handheld IT devices like laptops and tablets is highly dependent on power efficiency. The new IC incorporates one boost regulator for the power supply to source and gate drivers, one low dropout (LDO) regulator, two voltage reference operational amplifiers, three negative output LDO regulators, three high-current buck regulators for power supply to a timing controller, and two operational amplifiers for the gamma buffer.
- September 2022 - Analog Devices announced that it would increase its investment in the Chinese market and upgrade Analog Devices (Shanghai) Co. Ltd to Analog Devices (China) Co. Ltd as ADI's headquarters-based organization for investment and operation in China, which is an essential action to enforce the localization strategy in the Chinese market. After this upgrade, ADI China will have all-around capabilities from need research, product definition, R&D, market sales, and operations. The new company will create local independent decision-making products for the Chinese market and deliver a flexible RMB payment and settlement model.
APAC Analog IC Market Leaders
ON Semiconductor
Analog Devices Inc
Infineon Technologies AG
Microchip Technology Inc
NXP Semiconductors NV
*Disclaimer: Major Players sorted in no particular order
APAC Analog IC Market News
- June 2022 - Australia's Silicon Quantum Computing chained 10 quantum dots to develop a quantum integrated circuit (IC) to simulate molecular behavior. SQC made the processor using a scanning tunneling microscope to precisely place multiple atomic components within a single device at its facility in Sydney.
- May 2022 - Toshiba Electronic Devices & Storage Corporation and Japan Semiconductor Corporation developed a highly dedicated and versatile analog platform with an embedded non-volatile memory (eNVM) for automotive applications. The 0.13-micron generation analog platform for analog integrated circuits (ICs) delivers an optimized blend of processes and devices, according to rated voltage, performance, reliability, and cost, for automotive analog circuits and eNVM on a single chip.
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 Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Impact of Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Surging Demand for Communication Devices
5.1.2 Growing Automtive Sector in the Region
5.2 Market Challenges
5.2.1 Increasing Design Complexity of Analog IC
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 General-purpose IC
6.1.1.1 Interface
6.1.1.2 Power Management
6.1.1.3 Signal Conversion
6.1.1.4 Amplifiers/Comparators (Signal Conditioning)
6.1.2 Application-specific IC
6.1.2.1 Consumer
6.1.2.1.1 Audio/Video
6.1.2.1.2 Digital Still Camera and Camcorder
6.1.2.1.3 Other Consumers
6.1.2.2 Automotive
6.1.2.2.1 Infotainment
6.1.2.2.2 Other Infotainment
6.1.2.3 Communication
6.1.2.3.1 Cell Phone
6.1.2.3.2 Infrastructure
6.1.2.3.3 Wired Communication
6.1.2.3.4 Short Range
6.1.2.3.5 Other Wireless
6.1.2.4 Computer
6.1.2.4.1 Computer System and Display
6.1.2.4.2 Computer Periphery
6.1.2.4.3 Storage
6.1.2.4.4 Other Computers
6.1.2.5 Industrial and Others
6.2 By Country
6.2.1 China
6.2.2 Japan
6.2.3 South Korea
6.2.4 Rest of Asia-Pacific
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Analog Devices Inc.
7.1.2 Infineon Technologies AG
7.1.3 Microchip Technology Inc.
7.1.4 NXP Semiconductors NV
7.1.5 ON Semiconductor
7.1.6 Skyworks Solutions Inc.
7.1.7 Stmicroelectronics NV
7.1.8 NXP Semiconductors NV
7.1.9 Renesas Electronics Corporation
7.1.10 Texas Instruments Incorporated
7.1.11 Qorvo Inc.
7.1.12 tek Technology Corporation (MediaTek Inc.)
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
APAC Analog IC Industry Segmentation
Analog integrated circuits are dedicated to designing and applying analog, radio frequency (RF), mixed-signal integrated circuits (ICs), and signal processing circuits and systems. Most digital consumer products, from appliances and cell phones to music players, have analog ICs feeding their digital heart, including other applications, such as automotive, military, and government.
The Asia-Pacific analog IC market is segmented by type (general-purpose IC (interface, power management, signal conversion, amplifiers/comparators (signal conditioning)), application-specific IC (consumer (audio/video, digital camera and camcorder), automotive (infotainment), communication (cell phone, infrastructure, wired communication, short range, short range), computer (computer system and display, computer periphery, storage), and industrial and others)), and country. The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.
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Frequently Asked Questions
What is the current APAC Analog IC Market size?
The APAC Analog IC Market is projected to register a CAGR of 7.42% during the forecast period (2024-2029)
Who are the key players in APAC Analog IC Market?
ON Semiconductor , Analog Devices Inc, Infineon Technologies AG , Microchip Technology Inc and NXP Semiconductors NV are the major companies operating in the APAC Analog IC Market.
What years does this APAC Analog IC Market cover?
The report covers the APAC Analog IC Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the APAC Analog IC Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
APAC Analog IC Industry Report
Statistics for the 2024 APAC Analog IC market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. APAC Analog 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.
