Asia Pacific Logic IC Market Size

Asia Pacific Logic IC Market Analysis

The Asia-Pacific logic integrated circuit (IC) market was valued at USD 123.58 billion in the previous year. It is expected to register a CAGR of about 7.65%, reaching USD 194.92 billion during the forecast period.

• The increasing demand for industrial automation solutions, advanced medical and consumer devices, and electric vehicles in the Asia Pacific regions are among the major factors driving the growth of the logic integrated circuits market.
• Logic integrated circuits or logic ICs are semiconductor device that implements a basic logical operation based on one or more digital input signals. These ICs are used in almost every electrical and electronic equipment and circuitry.
• Over the years, the Asia Pacific region has witnessed significant development, with countries such as China, Japan, and South Korea emerging as the leading countries in terms of infrastructural and economic growth. For instance, China's industrial and manufacturing industry has grown so much that it is widely regarded as the global manufacturing hub, as most global players have established their manufacturing units in the country.
• Inspired by the growth of China, countries such as India, Taiwan, Thailand, and Vietnam, among others, have also started to up the ante by taking several initiatives, such as launching PLI schemes and making regulatory changes, to create a favorable scenario for the growth of the industrial sector in their respective regions. Furthermore, with the growing entry of global countries in these regions, the adoption of advanced industrial solutions such as automation, robotics, IIoT, etc. are also increasing, which altogether creates a favorable outlook for the growth of the studied market in the region.
• Moreover, the IT and telecom industry in the Asia Pacific region has also expanded rapidly, with countries such as India, Singapore, and China, among others, witnessing the highest growth owing to factors such as the availability of skilled workforce at a lower cost and favorable government regulations making Some of the Asian countries a favorite destination to outsource IT services. The emergence of IT giants such as TCS, Infosys, Wipro, etc, also drives this growth.
• However, factors such as a higher development cost owing to the complexity associated with logic ICs are among the major factors challenging the studied market's growth. Additionally, the short life cycle of logic ICs is another major factor restraining the studied market's growth.