Asia Pacific Integrated Circuit (IC) Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 8.54 % |
| Market Concentration | Low |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
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Asia Pacific Integrated Circuit (IC) Market Analysis
The Asia Pacific Integrated Circuit (IC) Market was valued at USD 128.31 billion the previous year and is expected to reach USD 212.59 billion over the forecasted period, registering a CAGR of 8.54%. With the increasing use of mechatronics in consumer, industrial, telecom, and automotive applications, the demand for electronic components with integrated circuits is expected to drive market growth.
An integrated circuit (IC) is a small silicon semiconductor chip. It is an electronic component assembly comprising fabricated miniature active and passive devices. ICs are used in various industries, including automotive, telecommunications, electrical, electronics, and medicine.
One of the key factors boosting the demand for ICs is the increasing investment by fabs to improve production capabilities. For example, the Indian government intends to establish an "India Semiconductor Mission" with an investment of INR 76,000 Crores (approximately USD 10 Billion) to drive long-term strategies for the chip and display industries' sustainable development. Such initiatives to expand chip manufacturing capabilities will propel the market.
The growing use of application-specific Analog integrated circuits in consumer electronics such as smartphones, PCs, Smartwatches, and tablets is expected to drive regional demand. An ASIC is an integrated circuit designed specifically for a particular application or purpose. These Integrated Circuits (ICs) combine all electronic components onto a single chip.
Moreover, one of the significant factors driving IC demand is the region's increasing investments in expanding consumer electronics production. For example, in January 2021, the Chinese government hoped to increase the domestic market for electronic components to RMB 2.1 trillion (327 billion USD) by 2023. Such government initiatives are expected to boost demand for IC components and devices used in consumer electronics.
The APAC's integrated circuits market is gaining traction, owing to high demand in various industries ranging from consumer electronics (smartphones, laptops, digital cameras) to automobile industries. Furthermore, technological advancements in several regions' IT and telecommunications initiatives are expected to boost the market.
The increasing adoption of 5G technology drives demand for 5G-enabled smartphones while also assisting in the digitization of other industries. High-speed data connectivity enabled by 5G is expected to benefit industrial automation and the adoption of advanced technologies such as AI, IoT, etc. According to the Ministry of Industry and Information Technology, by the second quarter of 2022, the number of 5G base stations in China surpassed 1.85 million. The country added nearly 300,000 5G base stations in the second quarter of 2022. Such developments are expected to create demand for ICs.
Moreover, the market is expected to be fueled by the increasing installation of memory devices across various industries. With multiple product launches, acquisitions, and expansions, significant vendors in the APAC region are also contributing to the market's growth. For example, GigaDevice introduced the GD25UF series of SPI NOR Flash in March 2023 as part of its strategic roadmap of 1.2V Flash products supporting SoCs and applications processors built on advanced function nodes. The GD25UF SPI NOR Flash products are designed for applications requiring extremely low power consumption or a small board footprint.
The automotive industry accounts for a sizable portion of the region's total demand for analog integrated circuits. In addition, the steps taken to increase the adoption of autonomous vehicles drive demand for analog integrated circuits. The Japanese government passed legislation in August 2022 to establish new rules for next-generation mobility, such as unmanned self-driving vehicles, automated delivery robots, and electric kick scooters. Government initiatives to advance the automotive industry are expected to increase demand for integrated circuits.
One of the factors limiting market growth is the complex fabrication process caused by decreasing chip size. There are numerous design challenges in today's IC technology. The manufacturing process for advanced technology nodes is highly variable. Analog integrated circuit (IC) design, for example, focuses on developing courses that operate in and are optimized for continuous time-domain behavior. Such factors are expected to restrain the market's growth.
However, factors such as the recent US government ban on advanced electronic design automation (EDA) software exports to China may prevent Chinese chip companies from accessing advanced semiconductor technology, which may hurt the country's IC market growth.
The outbreak of COVID-19 across the globe significantly disrupted the supply chain and production of the market in the initial phase of 2020. However, the COVID-19 pandemic had a significant impact on sales of consumer electronics. Many categories like computers and peripherals benefitted as consumers work from home, leading to more sales of these products. In addition, the trends of digitalization and growing IoT technology amid the pandemic accelerated the demand for analog integrated circuits.
Asia Pacific Integrated Circuit (IC) Market Trends
Analog IC is Expected to Drive the Market
An analog integrated circuit (IC) is a network of interconnected components built on a semiconducting wafer. In contrast to digital circuits, which have only two levels of input and output voltages, these components operate over a continuous range of input signals. They're common in cellphones, wireless devices, third and fourth-generation (3G/4G) radio base stations, 5G, and portable device batteries.
The region's market for analog integrated circuits is expected to be driven by the evolution of technological transformation in the consumer electronics, Telecom, and automotive sectors in countries such as India, China, South Korea, and Japan. The use of analog ICs in systems is growing due to technological developments like temperature sensors and power management in devices like wireless headphones, speakers, home appliances, and smartphones.
Moreover, Internet of Things (IoT) adoption is growing steadily due to the increasing availability of high-speed connectivity, cloud adoption, and data processing and analytics; Internet of Things (IoT) adoption is expected to drive the market for Analog ICs. According to Ericsson, North East Asia is expected to be the leading region in cellular IoT connections, surpassing 2 billion by 2023.
Over the forecast period, the rapidly growing demand for smartphones and tablets is expected to boost the market for application-specific integrated circuits. Furthermore, with the introduction of smart electronic and electrical products such as televisions, wearables, digital cameras, and laptops that feature advanced technologies such as flat screens, touchscreen monitors and displays, and Bluetooth functions, demand for analog ICs is expected to rise.
The increasing deployment of 5G connectivity across the region is driving the incorporation of connected car features in vehicles, supporting market growth. According to Ericsson, 5G will account for nearly 40% of mobile subscriptions in India by the end of 2027, with 500 million subscribers. Such development factors will increase the demand for Analog ICs in the sector.
Moreover, China is one of the world's leading producers and consumers of semiconductors and related devices. The government has seen a surge in the electronics industry, particularly since the infamous trade war with the United States. According to China Unicom, the country's commercial roll-out of 6G mobile services is expected to begin in 2030. The market for ICs in the electronics industry is expected to be driven by China's growth in mobile communications.
Furthermore, India has emerged as one of the world's fastest-growing economies due to its rise in population. With the help of substantial incentives and assistance from Foxconn in Taiwan, India intends to launch a chip fab industry. Foxconn, for example, announced in December 2022 that it would build a semiconductor fabrication facility in Gujarat. The company already manufactures Apple iPhones in the country and is expected to build a USD 20 billion semiconductor fabrication plant on the site in collaboration with commodities behemoth Vedanta Group. Such investments will help to develop the region's IC market.
Automotive is Expected to Hold Significant Share
The APAC automotive industry is among the leading demand drivers for ICs. The rapid emergence of the new energy vehicle (NEV) market in several nations, such as China, Japan, Korea, and other markets, as well as the rising demand for analog chips used in automotive electronics, are driving the development of the market under consideration. For instance, according to the China Association of Automobile Manufacturers (CAAM), around 2.9 million battery electric vehicles were sold in 2021, showing an increase of 166 percent compared to 2020.
Moreover, according to China Passenger Car Association, it is estimated that sales of passenger NEVs in China will reach 8.5 million in 2023, up from 6.5 million in 2022. Total NEV sales in 2023, including those of commercial vehicles, are expected to reach 9 million. In addition, NEVs are expected to account for 30 percent of total vehicle sales in 2023, up from 25.6 percent last year. Such factors and developments within the region's automotive segment will drive the demand for ICs for their extensive usage.
Application Specific IC segment is also finding various opportunities for their use in automotive end equipment such as infotainment systems, which include information and passenger electronics systems. The region's automotive industry developments are expected to drive demand for Application specific analog ICs. According to the Japan Automotive Dealers Association and the Japan Light Motor Vehicle and Motorcycle Association, sales in Japan increased 16.7% to 349,592 units in April 2023. From January 2023 to April 2023, total sales increased 15.7% to 1,731,150 units. Such advancements in Japan's automotive industry will necessitate using Analog ICs in their applications.
With the transition to electric vehicles and the increase of vehicles with advanced driver assistance systems (ADAS), the IC market dominated by Analog ICs is expected to see continuous growth catering to their demand in Automotive applications. This has created a significant opportunity for the vendors in the market to enhance their presence through strategic investments.
For instance, in May 2022, Toshiba and Japan Semiconductor Co., Ltd. developed a highly reliable and versatile analog platform with built-in non-volatile memory (eNVM) for automotive applications. Co-developed. Applied analog integrated circuits (ICs), the 0.13-micron generation analog platform, is an optimized combination of processes and devices for voltage ratings, performance, reliability, and cost of automotive analog circuits and eNVM on a single chip.
In addition, in August 2022, Analog IC foundry GTA Semiconductor recently launched a production capacity expansion project in the Lingang Special Zone of the Shanghai Pilot Free Trade Zone, planning to set up a new automotive chip production line. The company has decades of experience in quality control systems for automotive IC production in mass production mode. Such investments are expected to boost the demand for automotive ICs in the region.
Moreover, the growing need for advanced driver assistance systems (ADAS) will drive the industry's growth during the forecast period. In addition, factors such as increasing vehicle production and new technology improving vehicle standards are accelerating the development of IC adoption in regions such as India, South Korea, and China. For example, the Indian government predicts that the automotive sector will attract investments of USD 8 billion to USD 10 billion from domestic and foreign sources by 2023. Such investments are expected to increase vehicle production capacity and create significant demand for semiconductor devices like ICs.
Asia Pacific Integrated Circuit (IC) Industry Overview
The Asia Pacific Integrated Circuit (IC) Memory market is fragmented, with a few vendors controlling a sizable portion. Infineon, SMIC, STMicroelectronics, and others are among the key players. These players use product launches, collaboration, and partnerships, among other strategic initiatives, to gain a competitive advantage in the regional market.
In January 2023, Geely Technology Group and GTA Semiconductor signed a strategic cooperation agreement for comprehensive cooperation in automotive chip development, manufacturing, market application, and talent training. The two companies will also focus on the coordinated development of the automotive chip industry and promote major domestic semiconductor technology breakthroughs.
In July 2022, Tokyo-based Mitsubishi Electric Corporation announced the launch of a 50W silicon radio-frequency (RF) high-power metal-oxide-semiconductor field-effect transistor (MOSFET) module for use in high-frequency power amplifiers of commercial two-way radios. The model, which offers a power output of 50W in the 763MHz to 870MHz band and high total efficiency of 40%, is expected to help expand the radio communication range and reduce power consumption.
In September 2022, Semiconductor Manufacturing International Corporation (SMIC) announced the official opening of Ningbo Semiconductor International Corporation, jointly established by China IC Capital (SMIC's wholly-owned investment fund), Hua Capital, and Ningbo Sensung Electronics. The joint venture will focus on developing analog and specialty semiconductor technology platforms in high-voltage analog, optoelectronics, and radio frequency.
In May 2022, Analog Devices, Inc. announced their collaboration to provide model libraries for DC/DC ICs and µModule (micromodule) regulators with Synopsys' industry-leading simulation tool, Saber, part of Synopsys' virtual prototyping solution. With this new library in the Saber system-level simulation system, powertrain designers for products such as electric vehicles, avionic machines, instrumentation equipment, and supercomputers can perform accurate multi-domain simulations with precision and speed, accelerating the design process and time-to-market.
Asia Pacific Integrated Circuit (IC) Market Leaders
Intel Corporation
Texas Instruments INC.
Analog Devices INC.
Infineon Technologies AG
NXP Semiconductors N.V.
*Disclaimer: Major Players sorted in no particular order
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Asia Pacific Integrated Circuit (IC) Market News
- January 2023: Siemens Digital Industries Software introduced Questa Verification IQ software, a breakthrough solution that enables logic verification teams to meet the challenges associated with the dramatic increase in design complexity of demanding next-generation integrated circuit (IC) designs. Logic verification traditionally accounts for over 70% of the overall IC development cycle. As a result, Questa Verification IQ helps accelerate verification completion, improve traceability, optimize resources, and reduce time to market.
- September 2022: FPT Semiconductor, a chip design and manufacturing company, has officially launched its first product line of IC chips for Internet of Things (IoT) products in the medical field, designed in Vietnam and manufactured in Korea. FPT Semiconductor plans to ship 7 types and 25 million chips worldwide by 2023 to meet diverse communications, IoT, automobiles, energy, and electronics needs.
- June 2022: Wise-integration, a pioneer in digital control of gallium nitride (GaN) power supplies and GaN ICs, has launched its first commercial products. The company announced its WI62120 120 mOhm half-bridge power supply circuit that offers power electronics designers new power density levels, performance, and cost efficiency. Market segments include consumer (such as ultra-fast chargers for mobile and desktop devices), e-mobility, and industrial AC/DC power supplies.
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 Increasing Penetration of Consumer Electronics including Smartphones and Tablets in APAC
5.1.2 Continuous Evolution Of Mega Trends such as Cloud Computing, IoT and AI
5.1.3 Rising Capital Spending by Fabs to Increase Production Capacities in the Region
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 Analog
6.1.1.1 General-purpose IC
6.1.1.2 Application-specific IC
6.1.2 Logic
6.1.2.1 TTL (Transistor Transistor Logic)
6.1.2.2 CMOS (Complementary Metal Oxide Semiconductor)
6.1.2.3 Mixed-Signal IC
6.1.3 Memory
6.1.3.1 DRAM
6.1.3.2 Flash
6.1.3.3 Other Types
6.1.4 Micro
6.1.4.1 Microprocessors (MPU)
6.1.4.2 Microcontrollers (MCU)
6.1.4.3 Digital Signal Processors
6.2 By Application
6.2.1 Consumer Electronics
6.2.2 Automotive
6.2.3 IT & Telecommunications
6.2.4 Industrial
6.2.5 Other Applications
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Intel Corporation
7.1.2 Texas Instruments INC.
7.1.3 Analog Devices INC.
7.1.4 Infineon Technologies AG
7.1.5 STMicroelectronics N.V.
7.1.6 NXP Semiconductors N.V.
7.1.7 On Semiconductor Corporation
7.1.8 Microchip Technology INC.
7.1.9 Renesas Electronics Corporation
7.1.10 MediaTek INC.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Asia Pacific Integrated Circuit (IC) Industry Segmentation
An integrated circuit (IC), a chip, microchip, or microelectronic circuit, is a semiconductor wafer fabricating thousands or millions of tiny resistors, capacitors, diodes, and transistors. ICs can be used for various purposes, such as amplifiers, video processors, computer memory, switches, and microprocessors, in various applications such as communication systems, computing devices, consumer electronics, automotive, and others.
Asia Pacific Integrated Circuit (IC) Market is segmented by Type (Analog (General-purpose IC, Application-specific IC), Logic (TTL (Transistor Transistor Logic), CMOS (Complementary Metal Oxide Semiconductor), Mixed-Signal IC), Memory (DRAM, Flash), Micro (Microprocessors (MPU), Microcontrollers (MCU), Digital Signal Processors )), Application (Consumer Electronics, Automotive, IT & Telecommunications, Industrial) and Country. The report offers the market size in value terms in USD for all the abovementioned segments.
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Frequently Asked Questions
What is the current Asia Pacific Integrated Circuit (IC) Market size?
The Asia Pacific Integrated Circuit (IC) Market is projected to register a CAGR of 8.54% during the forecast period (2024-2029)
Who are the key players in Asia Pacific Integrated Circuit (IC) Market ?
Intel Corporation, Texas Instruments INC., Analog Devices INC., Infineon Technologies AG and NXP Semiconductors N.V. are the major companies operating in the Asia Pacific Integrated Circuit (IC) Market .
What years does this Asia Pacific Integrated Circuit (IC) Market cover?
The report covers the Asia Pacific Integrated Circuit (IC) Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Asia Pacific Integrated Circuit (IC) Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Asia Pacific Integrated Circuit (IC) Market Industry Report
Statistics for the 2024 Asia Pacific Integrated Circuit (IC) market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Asia Pacific Integrated Circuit (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.
