Semiconductor Industry Landscape is expected to register a healthy CAGR of over 6% during the forecast period (2021 - 2026). Technical advancements across the semiconductor industry are continuously evolving along with increased investments in memory devices and semiconductor component.
- The advent of IoT and artificial intelligence (AI), along with the proliferation of sophisticated electronics are driving the high-end application segment across the consumer electronics and automotive industries. These dynamics have increased the rate of adoption of the latest semiconductor manufacturing, to meet the growing demand. - The consumer electronics market is expected to generate about 50% of its revenue from the sales of TVs, video-game consoles & handhelds, and digital set-top boxes, where wearables are expected to grow at a very high rate by the end of 2022, thereby driving the growth of the semiconductor market landscape. - Increasing concerns regarding what data capture and communications services their chips enable, along with their ability to collaborate with other players across the IoT value chain, are making semiconductor companies approach their markets differently. Production of custom chipsets, based on consumer requirements are expected to grow rapidly, increasing demand for several advanced semiconductor application.
Key Market Trends Consumer Electronics Sector is Gaining Traction During the Forecast Period
- The electronics market has a constant demand for higher power dissipation, faster speeds, and higher pin counts, along with smaller footprints. The miniaturization and integration of semiconductors have given rise to smaller, lighter, and more portable devices, such as tablets, smartphones, and the emerging IoT devices. Each new iteration of consumer electronics products is smarter, lighter, and more energy-efficient than its predecessors. This creates huge expectations among customers for the next iteration, which is a major selling point for the producers of consumer electronics sector. - The semiconductor technology is consistently scaling down to smaller sizes and geometries, where a single chip is able to house more and more devices, thereby implying more functionalities per chip, due to which a number of previously-used chips are now being merged into a single chip, by providing highly-integrated solutions. - Recent advancements in silicon wafer materials have allowed the process of Wafer Level Packaging (WLP), where an IC is packaged, resulting in a component that is practically the same size as that of the die, increasing the usage of semiconductor ICs across the consumer electronics components.
Asia-Pacific to Register the Largest Growing Region During the Forecast Period
- The growth of the semiconductor industry landscape in the region correlates with the end-user growth across the region, being one of the significant markets for smartphones, and is witnessing rising investments in renewable, automotive (EVs specifically), among various others. - With the rise in electronic equipment production across the region, the largest country market across the Asia Pacific region is China. According to the World Semiconductor Trade Statistics (WSTS) and SIA Estimates, China is the single largest country of APAC region, thereby accounting for 56% of the Asia Pacific market and is capturing 34% of the total global market. - The consumption of semiconductor components is rapidly increasing in China, Japan, South Korea as compared to other countries, owing to the continuing transfer of diverse electronic equipment to China. Also, China is home to three of the top five largest consumer electronics sector in the world, posing tremendous opportunities for semiconductor adoption across the region during the forecast period. - Also, the region boasts of the highest investment in the electrical & electronics segment, for instance in 2018, Taiwan-based Powertech Technology announced an investment of more than USD 1.68 billion, in an advanced factory, to ride on the next technology wave of artificial intelligence, high-performance computing, and connected cars. This is set to fuel innovation in the semiconductor industry in the aforementioned applications.
Competitive Landscape The Semiconductor Industry Landscape is highly competitive and consists of several players. In terms of market share, some of the major players currently dominate the market. However, with the advancement in the chip manufacturing process for providing enhanced applications, new players are increasing their market presence thereby expanding their business footprint across the emerging economies.
- September 2019 - Kyocera Corporation announced its new 5655 Series electronic Board-to-Board connectors optimized for high-speed data transmission, featuring a 0.5mm-pitch and a stacking height of just at 4mm, among the world’s thinnest for this class of connector. - June 2019 - Texas Instruments introduced an automotive system basis chip being the industry’s first to integrate a controller and transceiver for Controller Area Network with Flexible Data Rate (CAN FD). The TCAN4550-Q1 helps designers lower system power consumption when in standby mode through the wake and inhibit features.
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