|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
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The semiconductor industry landscape was valued at USD 549.19 billion in 2021. It is projected to be worth USD 906.32 billion by 2027, registering a CAGR of approximately 8.23% during the forecast period (2022-2027). The semiconductor industry is witnessing rapid growth, with semiconductors emerging as the basic building blocks of all modern technology. The advancements and innovations in this field are resulting in a direct impact on all downstream technologies.
- The number of semiconductor components used in the world is constantly expanding. Chips form the essential core of many cutting-edge technological devices such as smartphones, tablets, flat-screen monitors and television sets, sophisticated cars, new aircraft, and many medical devices. Semiconductors are critical technology enablers and power today's cutting-edge digital devices.
- Computing devices continue to get smaller, faster, and cheaper, ranging from the mainframe to the mini and PCs to smartphones. These shifts depend on advancements in semiconductor technology and the ongoing impact of Moore's Law, as individual transistors give way to the integrated circuit and the sophisticated system on a chip.
- Additionally, IoT is transforming the semiconductor industry. Rather than being dependent on a single kind of device, the IoT-oriented chip market is highly diverse. Semiconductors are needed for many cloud integration and connectivity aspects, including computing, sensors, communications, and interactivity.
- The growing trend of adopting connected devices in the residential and industrial sectors is augmenting the demand for semiconductors. The benefits offered by IoT in reducing costs, predictive maintenance, and data analytics are driving the adoption rates in the industrial segment. According to a recent Forbes study, almost 94% of the executives surveyed mentioned that IoT has helped or will help boost their annual profits by at least 5-15%.
- Some experts believe it is no longer possible to shrink the transistor further. A rough idea to understand the dimensions is to compare the scale of the modern transistor, whose typical gate is about 20 nanometers long. In contrast, a water molecule is only 2.75 angstrom or 0.275 nanometers in diameter. At such a limited scale, many factors restrict the fabrication expectations of the transistor. One of the fundamental challenges is to control materials at the atomic level. It becomes difficult to place individual atoms to create a transistor.
- The semiconductor shortage is negatively impacting the electronics and auto industries, as only five countries supply chips, namely China, Taiwan, Japan, South Korea, and the United States. These countries are dealing with a significant demand and supply imbalance. Chipmakers' development to certification cycles is lengthy. It is challenging to keep track of and coordinate with market shifts, with the market players being in disagreement. The supply-demand equilibrium is far too precarious. The consumption of chips is high in the consumer electronics segment due to the increasing consumption of video games or personal computers. However, carmakers should not be prevented from producing automobiles.
Scope of the Report
Semiconductors are essential technology enablers that power many cutting-edge digital devices. The semiconductor industry is projected to continue its robust growth well into the next decade due to advancements in emerging technologies, such as autonomous driving, artificial intelligence (AI), 5G, and the Internet of Things (IoT), coupled with consistent spending on R&D and competition among the prominent players.
The semiconductor industry landscape is segmented by type, application, and geography.
|Discrete (Diodes, Signal Transistors, Power Transistors, Rectifiers, and Thyristors)|
|Optoelectronics (Displays, Lamps, Image Sensors)|
|Asia-Pacific (Excluding China and Japan)|
Key Market Trends
Consumer Electronics Sector is Expected to Gain Significant Traction
- Consumer electronics is one of the prominent application segments for the semiconductor market. The growing adoption of consumer electronics devices, such as laptops, earphones, wearables, and smartphones, is boosting the segment's growth.
- Semiconductors are essential consumer electronics components, enabling advances in different applications, such as communication and computing. The rapid development in the technology and size of consumer electronics is also boosting the demand for advanced semiconductor technology.
- With the advent of 5G technology, there has been an increase in the adoption of 5G-enabled smartphones supporting the adoption of different foundry nodes. The deployment of 5G may significantly enhance the wireless data communication bandwidth, latency, and density of connected devices.
- 5G also enables service providers to collect enormous data for deep learning AI-based new services. Various chip suppliers of 5G smartphones witnessed a surge in demand for 5G chips due to the sale of 5G-enabled smartphones. This demand growth is contributing to the development of the semiconductor foundry market.
- According to Cisco Systems, the number of connected wearable devices in North America will reach 439 million by 2022 from 378.8 million in 2021. The demand for semiconductors is massive, and the shortage of semiconductor fabs is catering to such strong demand. TSMC pledged USD 100 billion investment to expand its semiconductor fabrication capacity in line with the demand growth in the consumer and automotive industries.
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Asia-Pacific is Expected to Witness the Highest Growth
- The growth of the semiconductor industry landscape in Asia-Pacific correlates with the end-user growth across the region, being one of the significant markets for smartphones. It is witnessing rising investments in the renewable and automotive (EVs specifically) sectors.
- China is the largest market across the region due to the rising electronic equipment production. According to the World Semiconductor Trade Statistics (WSTS) and SIA Estimates, China is the largest country in the region, accounting for 56% of Asia-Pacific and 34% of the global market.
- The consumption of semiconductor components is rapidly increasing in China, Japan, and South Korea compared to other countries, owing to the continuous transfer of diverse electronic equipment to China. The country is home to three of the world’s top five largest consumer electronics sectors, posing tremendous opportunities for semiconductor adoption across the region during the forecast period.
- Semiconductors are Korea's largest export material. However, most of it is memory products, NAND Flash, and DRAM memory. The new plan aims to boost the advanced logic chip foundry capacity. Though Samsung operates a foundry service with technological capabilities on par with world leader TSMC, it does not have TSMC's volume. SK Hynix has few foundries, but those facilities are far less advanced.
- Samsung Electronics outlined its aim to spend KRW 133 trillion in logic gate chip production to compete with TSMC and Intel by focusing on collaborating with local suppliers. This move will create massive growth opportunities for local semiconductor manufacturers and suppliers. The company also announced its plans to mass-produce various products relevant to logic gate chips in collaboration with local Korean partners.
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The semiconductor industry landscape is highly competitive and consists of several players. Regarding market share, some of the major players currently dominate the market. However, with advancements in the chip manufacturing process for enhanced applications, new players are increasing their market presence and expanding their footprint across emerging economies.
- January 2022 - Samsung Electronics Co. Ltd announced its new premium mobile processor Exynos 2200. The Exynos 2200 is a freshly designed mobile processor with a powerful AMD RDNA 2 architecture-based Samsung Xclipse graphics processing unit (GPU).
- January 2022 - Intel announced an initial investment of USD 20 billion in constructing two new leading-edge chip factories in Ohio. The investment may help boost production to meet the surging demand for advanced semiconductors, powering a new generation of innovative products from Intel and serving the needs of foundry customers as part of the company’s IDM 2.0 strategy.
- March 2022 - Qualcomm Technologies Inc. and Square Enix Co. Ltd announced a collaboration to explore the extended reality (XR) experiences for Square Enix Co. The Advanced Technology Division (ATD) at Square Enix may work on the Snapdragon Spaces XR Developer Platform. The two companies will collaborate on new paths to push the boundaries of immersive gaming experiences.
- March 2022 - NVIDIA announced NVIDIA OVX, a computing system designed to power large-scale digital twins. It is built to operate complex digital twin simulations that will run within the NVIDIA Omniverse, a real-time, physically accurate world simulation and 3D design collaboration platform. THE NVIDIA OVX system combines high-performance GPU-accelerated compute, graphics, and AI with high-speed storage access, low-latency networking, and precision timing to provide the performance required to create digital twins with real-world accuracy.
Table of Contents
1.1 Study Assumption 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 Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rapid Advancements in AI, Automotive, and IoT are Driving the Market
5.1.2 Increasing Trend of Miniaturization in Semiconductor Devices
5.2 Market Challenges/Restraints
5.2.1 Complex Fabrication Process Due to the Decreasing Chip Size
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Discrete (Diodes, Signal Transistors, Power Transistors, Rectifiers, and Thyristors)
6.1.3 Optoelectronics (Displays, Lamps, Image Sensors)
6.1.4 Integrated Circuits
22.214.171.124 Analog (General Purpose and Application Specific)
126.96.36.199 Memory (DRAM, NAND, and Others)
188.8.131.52 Microcontrollers (MPU and MCU)
6.2 By Application
6.2.1 Consumer Electronics
6.2.3 Telecommunication Defense/Military
6.2.5 Other Applications
6.3 By Geography
6.3.3 Asia-Pacific (Excluding China and Japan)
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 Samsung Electronics Co. Ltd
7.1.2 Intel Corporation
7.1.3 SK Hynix Inc.
7.1.4 Micron Technologies Inc.
7.1.5 Qualcomm Incorporated
7.1.6 Nvidia Corporation
7.1.7 Broadcom Inc.
7.1.8 MediaTek Inc.
7.1.9 Texas Instruments Inc.
7.1.10 Infineon Technologies AG
8. INVESTMENTS/ FUTURE OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Semiconductor Industry Landscape market is studied from 2020 - 2027.
What is the growth rate of Semiconductor Industry Landscape?
The Semiconductor Industry Landscape is growing at a CAGR of 8.23% over the next 5 years.
Which region has highest growth rate in Semiconductor Industry Landscape?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Semiconductor Industry Landscape?
Asia Pacific holds highest share in 2021.
Who are the key players in Semiconductor Industry Landscape?
Qualcomm Technologies Inc., Samsung Electronics Co. Ltd, Intel Corporation, SK Hynix Inc. , Micron Technologies Inc. are the major companies operating in Semiconductor Industry Landscape.