Market Trends of Global Special Purpose Logic IC Industry
This section covers the major market trends shaping the Special Purpose Logic IC Market according to our research experts:
Growing Adoption of Logic IC in Automotive Industries
- The increasing demand for electric vehicles worldwide, because of rising consumer awareness about environmental pollution and rising oil prices, is influencing semiconductor demand which has led the market of special purpose logic IC to grow.
- To keep drivers safe, special purpose logic integrated circuits are used in vehicles. ICs improve connectivity driving and safety innovation among drivers, which is expected to fuel market demand. The rapid electrification of vehicles is driving the growth of the automotive special purpose logic IC market.
- The growing adoption of advanced driver-assistance systems (ADAS) and increasing government regulations globally mandating ADAS are also expanding the scope of this segment. Also, the growing adoption of infotainment in vehicles is expected to provide growth opportunities. The growing complexity of automotive digital applications requires the constant evolution of special purpose logic IC and technologies.
- The factors driving the global special purpose logic integrated circuit market's growth 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 for the production of autonomous, connected, and low-emission vehicles, are further fuelling the market growth of the automotive integrated circuit during the forecast period.
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Asia Pacific Expected to Witness Significant Market Share
- Asia-Pacific holds a prominent share of the market due to a significant number of semiconductor manufacturing operations in the region. The pure-play manufacturers operating in the region are increasing their production capacity to cater to the growing demand from fabless vendors.
- The Thai government launched an EV action plan in 2016 to encourage the production of BEVs and PHEVs to have 1.2 million such vehicles on the road by 2036. As a result, 13 companies have benefited from preferential tax treatment for electric vehicles. Thailand announced an EV roadmap in March 2020 to produce 250,000 EVs by 2025 and establish an ASEAN EV hub, which will drive market growth.
- Japan holds a significant position in the market as it is home to some of the significant IC chipset manufacturers and the electronics industry. The country focuses on luring semiconductor companies and engaging in partnerships with other nations to boost its semiconductor industry.
- Also, in April 2021, Japan and the United States agreed to partner on sensitive supply chains, including semiconductors. With Japan and the U.S. combining their respective strengths and sharing responsibilities, Japan plans on reinstating its competitiveness, signaling a comeback for the Japanese semiconductor industry.
- Due to the escalating technology standoff with the United States, China is strengthening its efforts to strengthen local software companies. This trend has touched many sectors, including chip access, 5G network construction, social media applications, and internet regulation. Beijing considers the technology industry strategically important, and government funding is projected to grow in the coming years.
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