The global semiconductor market size is projected to reach USD 726.73 billion by 2027, exhibiting a CAGR of 4.7% during the forecast period. Increasing smartphone usage will be a key growth factor for this market, finds Fortune Business Insights™ in its report, titled “Semiconductor Market Size, Share & COVID-19 Impact Analysis, By Components (Memory Devices, Logic Devices, Analog IC, MPU, Discrete Power Devices, MCU, Sensors and Others), By Application (Networking & Communications, Data Processing, Industrial, Consumer Electronics, Automotive, Government) and Regional Forecast, 2020-2027”. Greater affordability and improving accessibility to mobile phone technology have led to wider smartphone adoption over the past few years. According to the American think tank, Pew Research Center, approximately 2.5 billion people worldwide own at least one smartphone. Semiconductors are the heart of smartphones and other consumer electronics, embedded into microprocessors and transistors that power all electronic devices. Most of the semiconductor chips are made from silicon, with the element powering a multi-billion dollar tech industry. The demand for these materials is thus unlikely to fall in the near future owing to their essentiality in the electronics industry.
List of Key Companies Profiled in this Market Report:
· NXP Semiconductors N.V. (Eindhoven, The Netherlands)
· Micron Technology (Idaho, United States)
· Toshiba Corporation (Tokyo, Japan)
· Taiwan Semiconductors (Hsinchu, Taiwan)
· Samsung Electronics (Suwon-si, South Korea)
· Intel Corporation (California, United States)
· NVIDIA Corporation (California, United States)
· Maxim Integrated Products, Inc. (California, United States)
· Texas Instruments (Texas, United States)
· SK Hynix (Gyeonggi, South Korea)
· Qualcomm (California, United States)
· Broadcom, Inc. (California, United States)
Steadily Climbing Demand for Advanced Electronics to Fuel the Market in Asia Pacific
Asia Pacific is expected to dominate the semiconductor market share during the forecast period on account of the steadfast rise in demand for advanced electronics and components across the region. The region’s leading position is further bolstered by the expanding chip manufacturing operations in China, which holds a significant share in the global industry. In 2019, the market size of Asia Pacific stood at USD 279.77 billion.
Heavy investments in R&D are anticipated to propel the market in North America. The SIA estimates that between 1999 and 2019, spending on semiconductors in the US grew by 6.6% annually. In Europe, on the other hand, the market will be primarily driven by the widespread adoption of these materials across the region’s robust automotive industry.
Capacity Expansion to Fulfill Long-Term Growth Strategies of Key Players
With exponential spread of electronics around the globe, the demand for semiconductors is skyrocketing. To meet this demand, key players in the market are making massive investments to elevate their production capacities. In addition, several players are intensely focused on innovation to deepen their footprint in the market.
· February 2020: Samsung Electronics announced that mass production has commenced at its semiconductor fabrication plant at Hwaseong, Korea. The facility, called V1, is the company’s maiden production plant devoted to the extreme ultraviolet lithography technology and manufactures chips utilizing process nodes of 7 nanometers or below.
· February 2020: Toshiba expanded its micro-stepping motor driver Integrated Circuits (ICs) product line, adding a new IC to the mix, the TC78H670FTG. Having a maximum rating of 18V/2.0A, the IC can power a variety of motors at different ranges of operating voltages.