Published Date : 09 May 2023
The global semiconductor chip ecosystem industry is surging with an overall revenue growth expectation of hundreds of millions of dollars from 2023 to 2032.
Due to the rising demand for connected devices, rising semiconductor sales, and rising R&D expenditures, the worldwide semiconductor chip ecosystem industry is developing quickly.
Market Growth:
Simply stated, they are the main element that fuels the electrical devices you encounter every day. Semiconductor chips, which are typically made of silicon, are used to regulate electricity in a variety of electrical devices, including our vehicles, laptops, cellphones, freezers, etc. Semiconductors (chips) are substances with a permeability that lies between that conductors and insulators, technically speaking. Pure metals and combinations like silicon, germanium, gallium, and arsenide or cadmium selenide are examples of semiconductor materials.
The worldwide scarcity of semiconductor processors was made worse by the shutdown brought on by the Covid-19 pandemic. Countries like the US and India introduced policies to satisfy demand when supply interruptions deteriorated the situation.
Due to the development of new technologies like 5G, AI, and the Internet of Things, the demand for electronics has never been higher and is predicted to continue doing so. (IoT). This would require more semiconductor manufacturing, which would result in a significant rise in energy and water use. Up to 1 TWh of electricity and two to four million liters of ultra-pure water per day can be used by a single semiconductor fab. Industry pioneers like TSMC and Intel are proactively taking action and developing significant environmental initiatives.
Regional Snapshot:
Other nations' investments in semiconductor manufacturing have contributed to the depletion of American semiconductor production capability. The U.S. government has plans for a federal semiconductor reward scheme as a response to this. Over 50 billion dollars will be allocated through the CHIPS for America Fund for research and development in the chip industry. This is a component of the larger CHIPS and Science Act, which was passed into law in 2022 to enhance U.S. semiconductor supremacy by fostering innovation and providing greater national security protection.
China accounted for just under half of the sales across the Asia Pacific region in February 2021, with total chip sales in the Asia Pacific region, China, and Japan totaling about 28.11 billion U.S. dollars. Comparatively, in February 2015, chip sales in the Asia Pacific area, excluding China and Japan, totaled about USD 8.33 billion.
Semiconductor Chip Ecosystem Industry Report Scope:
| Report Coverage | Details |
| Largest Market | Asia Pacific |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Company Mentioned | Samsung, Intel, SK Hynix, TSMC, Global Foundries, UMC, AMD, Nvidia, Qualcomm, Advanced Semiconductor Engineering (ASE) Inc., and Others. |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America and Middle East & Africa |
Market Dynamics:
Drivers:
Automotive semiconductor demand patterns have already changed as a result of the intense emphasis on autonomous vehicles (AVs), with sales of specialized silicon—chips designed for particular applications growing rapidly. Only a few semiconductor firms offer these specialized chips, and some OEMs are now developing them internally to speed up development and increase control. Other OEMs might follow this path given the rising demand for specialized silicon. Both car and semiconductor companies must comprehend the effect of new and future AV technologies on chip demand to manage the changes that lie ahead and become industry champions.
Restraints:
Since they attempted to avoid investing in new capital machinery above and beyond what was necessary to satisfy customer demand, semiconductor fabs were already getting close to capacity before the pandemic. In reaction to erratic trade dynamics, several companies raised their semiconductor storage levels to ensure supply. The epidemic increased demand for laptops and other remote-working tools by driving up consumer demand. As a result, there is a scarcity of semiconductors due to increased demand and decreased output.
Opportunities:
OEMs are getting more engaged in design, which could be referred to as superficial verticalization. In this paradigm, OEMs specify the chip specifications and speak with IDMs and design firms directly. Then they instruct a factory to start producing. This approach appeals to some OEMs because it places less of the responsibility for assuring quality on the IDM or manufacturer and calls for less in-house talent. The shallow-verticalization approach has drawbacks, including higher material prices and fewer opportunities for OEMs to include their specs and develop specialized chips. Lack of customization may make it challenging to set their goods apart from the competition, particularly if rivals use specialized processors that offer higher computational efficiency.
Communication Insights:
The kinds of devices and uses that network and communication processors are used in various. As buffers, frames, front ends, isolators, link layer controllers, media access controllers (MAC), or physical layer controllers, some devices are employed. (Phy controllers). Others are employed as powerline networking devices, protectors, repeaters, receivers, RFID devices, sample rate converters, serializers-deserializers (SerDes), SLICs, storage interfaces, transmitters, transceivers, terminators, or universal asynchronous receiver/transmitters. (UART).
Application Insights:
According to the application, the consumer electronics industry is expected to experience the greatest growth in 2023. Companies that make semiconductors produce parts for a variety of consumer technology products, including TVs, watches, and video games. Another factor that is expected to drive semiconductor development in the industry is the increasing use of remote patient tracking devices, improvements in diagnosis and therapy methods, and the high incidence of noncommunicable illnesses.
End-User Insights:
The chip intellectual property components are anticipated to expand at the highest rate by end-user. A particular business owns the architecture of a microprocessor. Some companies lease chip designs for general use as IP Cores, which are fundamental software building blocks. IP Cores processors are sold by over 150 companies. Furthermore, a great CAGR is expected to be achieved by electrical design automation tools. To create circuits, engineers use specialized electronic design automation (EDA) tools. Three US vendors, Cadence, Synopsys, and Mentor, are the industry leaders.
Recent Development:
Market Segmentation:
By Communication
By Application
By Types of Companies
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