Semiconductor and Electronic Parts Manufacturing Market Size

Semiconductor & Electronic Parts Manufacturing Market Analysis

The semiconductor and electronic parts manufacturing market is expected to register a CAGR of 7.1% over the forecast period. With the advent of miniaturization, the adoption of emerging technologies in the Industrial Internet of Things (IIoT), and enhanced communication posed by 5G, the electronic component design and assembly have been revolutionized, boosting the market's growth studied. Further, increasing demand from the industrial sector for IoT and automation devices, owing to the policies of Industry 4.0, increased capital expenditure from the foundries, and demand for MEMS sensors are some of the major factors governing the increasing demand for the semiconductor and electronic parts.

• The manufacturing of semiconductor and electronic parts entails design and engineering, assembly, manufacturing, and testing services for electronic and semiconductor components and printed circuit board (PCB) assemblies. Aimed at original equipment manufacturers, it simplifies investment in automated assembly equipment. In the current market scenario, as almost all electronic devices, including laptops, smartphones, and computers, use ICs, PCBs, and other packages, the demand for manufacturing is rising.
• The increasing number of Internet of Things (IoT) devices is expected to force the semiconductor industry to increase its investment in semiconductor and electronic parts manufacturing to fulfill the growing demand for these products. This is evident from the fact that semiconductor companies (including foundries and OEMs) are spending considerable amounts on semiconductor equipment. For instance, according to SEMI, the global sales of total semiconductor manufacturing equipment are forecast to reach USD 117.5 billion in 2022, rising 14.7% from the previous industry high of USD 102.5 billion in 2021.
• Asia is expected to continue dominating the semiconductor manufacturing market as the favorable ecosystem and government regulations support the market's growth. Additionally, governments across various countries of the Asia Pacific region are taking initiatives to boost the local semiconductor manufacturing markets. For instance, in 2021, the government of India unveiled an INR 76,000 crore package to facilitate the country's semiconductor manufacturing industry.
• However, the factors such as the miniaturization of semiconductors and electronic components are further increasing the complexity of the manufacturing processes, which is among the significant challenges looming over the vendors involved in the manufacturing of semiconductors and electronic parts.
• The COVID-19 outbreak impacted the semiconductor and electronic part manufacturing industry, as the widespread lockdown and restriction on the utilization of the workforce in factories significantly impacted the manufacturing capabilities of the vendors. However, with most countries restoring their normal operations at all their semiconductor manufacturing sites, the studied market is also expected to witness an upward growth trend driven by increasing market demand.