Semiconductor Market (Updated Version Available)

Key Market Overview:

Semiconductor Market is estimated to reach over USD 1401.74 Billion by 2030 from a value of USD 586.34 Billion in 2022, growing at a CAGR of 11.8% from 2022 to 2030.

A semiconductor possess electrical conductivity between a conductor and an insulator. Manufacturing of electronic devices such as microprocessors, transistors, diodes, and others offers wide variety of application of semiconductors. Semiconductor have unique properties that make them suitable for use in a wide range of electronic applications, including computing, telecommunications, and renewable energy. Key raw materials required for the manufacturing of semiconductors include silicon, germanium, and gallium arsenide.

The semiconductor market is an essential industry that performs a significant role in the development of contemporary technology. The market is highly competitive and characterized by strong demand driven by the increasing adoption of electronic devices such as smartphones, laptops, and other consumer electronics. The market is also influenced by advancements in technology such as artificial intelligence (AI), 5G networks and Internet of Things (IoT) which leads to the development of new and more advanced semiconductor products. The industry is dominated by a few large players such as Intel, Samsung, and TSMC, who compete to offer the most advanced and cost-effective semiconductor products.

Semiconductor Market Report Coverage:

Market Dynamics:

Driver

The popularity of smartphones, laptops, and other consumer electronics, along with the development of new technologies such as Internet of Things (IoT), and 5G, has led to an increased demand for semiconductors. The increasing use of connected devices and the growing demand for advanced safety and autonomous driving features in the automotive industry have contributed to the growth of the semiconductor market. Moreover, government initiatives aimed at promoting the adoption of semiconductors in various industries such as renewable energy and healthcare are driving the growth of the market. For instance, the Indian government introduced scheme for setting up of Semiconductor Fabs in India which provides economic support to suitable applicants for planting semiconductor fabs. The major aim of the scheme is to attract large investments in order to set up semiconductor wafer fabrication facilities in the country.

Restraint

Environmental concerns regarding the production and disposal of semiconductors, such as the use of hazardous chemicals including ammonia, arsine and fluorine are restraining the growth of the market. Moreover, intellectual property issues, such as patent disputes and infringement lawsuits are further hampering the market growth.

Opportunities

The increasing demand for AI-powered devices and IoT technology across various industries, such as healthcare and automotive, are expected to create new opportunities for the semiconductor market. For instance, in the automotive industry the adoption of safety-related electronics systems such as anti-lock braking system made by semiconductor components has grown gradually owing to rising concern towards the safety will thus raise the demand for semiconductors market.

Semiconductor Market Segmentation:

By Component

The component segment is characterized by logic device, memory devices, analog IC, MCU (microcontroller unit) MPU (microprocessor unit), discrete power devices sensors, and others. The MPU component holds the largest share in the semiconductor market growth. Owing to the increasing demand for computing power in various end-use applications, including personal computers, data centers, and cloud computing. The rise of artificial intelligence, 5G, and the Internet of Things (IoT) has also driven demand for microprocessors for greater processing power and efficiency.

The memory device component is estimated to register the fastest CAGR in the market. This is attributed to the fact that semiconductors are used in a wide range of applications and industries, providing crucial data storage and retrieval capabilities. For instance, in the computing industry, memory chips are used as the main memory in personal computers, laptops, and servers.

By Type

The type segment is divided into analog, digital, mixed-signal, and others. The digital type holds the dominant share in the semiconductor market in terms of revenue owing to the increasing demand for computing power in a wide range of applications, including personal computers, smartphones, data centers, and the Internet of Things (IoT). Moreover, the growth of cloud computing and the increasing need for data processing and storage have further fueled the demand for digital semiconductors, particularly microprocessors.

Furthermore, the analog type is projected to hold the fastest growing CAGR in the forecast period. This is attributed to the fact that analog semiconductors are used in a wide range of applications, including audio and video processing, telecommunications, and industrial control systems.

By Technology

The Technology segment is separated into CMOS, BiCMOS, Bipolar, DMOS, and SOI. The CMOS technology contributed the largest shares to the market growth in terms of value. Complementary Metal-Oxide-Semiconductor (CMOS) technology is a widely used process for manufacturing semiconductor devices, including both digital and analog semiconductors. The main advantages of CMOS technology are its low power consumption, high density, and high performance. CMOS devices consume very little power when operating, making them ideal for portable and battery-powered devices owing to the aforementioned factor CMOS technology finds a wide range of applications, including microprocessors, memory chips, analog-to-digital converters, and many more.

By Application

The application segment is classified into Consumer Electronics, Automotive, Communication, Industrial, Healthcare, and Others. The consumer electronics sector accounted for the largest contribution to the Semiconductor Market shares. A wide range of electronic devices, such as smartphones, laptops, tablets, and televisions come under consumer electronics and they find wide use of semiconductors. For instance, microprocessors, memory chips, and wireless communication chips semiconductors are used in consumer electronics.

The communication segment is projected to register the fastest CAGR in the forecast period. This is attributed to the fact that semiconductors find a wide range of electronic systems used in the communication sector including cellular networks, data centers, and optical communication systems. These systems are used to provide processing power, memory, and connectivity.

By Region

The regional segment is divided into Asia Pacific, Europe, North America, Middle East and Africa, and Latin America. Asia Pacific accounted for the largest market share growth due to presence of largest market manufacturers for semiconductors in the countries such as China, Japan, and South Korea. The region is home to several major semiconductor companies, including Samsung, SK Hynix, and TSMC. The Asia-Pacific region has a rapidly growing economy, and expanding consumer base, which drives demand for semiconductors. Additionally, the countries such as China, South Korea and Singapore has a strong manufacturing capacity, which supports the growth of the semiconductor industry. The countries including India, Australia, and China is a major hub for the production of consumer electronics, computers, and other electronic devices, which drives demand for semiconductors.

Furthermore, North America is expected to contribute to the market in terms of shares. This is attributed to the fact that the U.S. is home to several major semiconductor companies, including Intel, Qualcomm, and Texas Instruments. The North American semiconductor market is also characterized by high levels of investment in research and development, and a highly skilled workforce, which supports the growth of the industry.

Semiconductor Market Competitive Landscape:

The market research report published on the Semiconductor Market offers an inclusive analysis of macroeconomic statistics such as market dynamics, segmental analysis, SWOT analysis, and others. In terms of market players, the data is related to business collaborations, mergers and acquisitions, product innovations, and strategies adopted by competitors. These factors are examined to offer an insightful understanding of current market circumstances. Following are the major market players that comprise the latest market concentration–

• Intel Corporation
• Samsung
• Toshiba Semiconductor
• Taiwan Semiconductor Manufacturing Company Limited (TSMC)
• SK Hynix Inc.
• Qualcomm Inc.
• Texas Instruments Inc.
• Broadcom Inc.
• Micron Technology, Inc.
• NXP Semiconductors
• Infineon technologies AG
• STMicroelectronics N.V.
• Renesas Electronics Corporation

Recent Developments

• In December 2022, Hitachi, a Japanese multinational conglomerate announced that it will release its revolutionary module of power semiconductor the RoadPak for electrical vehicles (EV) at the global power electronics trade fair in Nuremberg, the PCIM. RoadPak technology features state-of-the-art silicon carbide (SC) to accomplish an exceptional level of power density for fast charging and the lowest power loss for the longest possible driving range.
   
• In 2020, TSMC, a Taiwanese multinational semiconductor contract manufacturing and design company launched its new 5nm process node, which is designed to offer improved performance and energy efficiency compared to previous generations of semiconductor technology. TSMC’s N5 technology enables innovations for both smartphone and HPC applications