Semiconductors

The global semiconductors market was valued at US$ 330 billion in 2016 is projected to surpass US$ 395 billion by 2024 with a CAGR of 2%. Significant growth opportunities offered by industrial and automotive segments, tremendous growth potential in BRIC nations and increasing focus on technological advancements in U.S. and China are expected to favor growth of the semiconductors market. In addition to industrial and automotive segments, the semiconductor market can be broadly classified into data processing, communications, and consumer electronics. On the basis of components, the industry can be further segmented into memories, MPUs & MCUs, logic, analogue ICs, discrete semiconductors, optical semiconductors, and sensors and actuators.

The semiconductors market is characterized by advancements and adoption of innovative business models in several industrial processes to improve speed, optimize size and provide enhanced functionality of certain applications. Major applications of semiconductors include designing, packaging technologies, assembly and testing.

Packaging Technologies Overview

Since 1965, the semiconductor packaging technology has expanded into several types of semiconductor packaging methodologies. The industry has witnessed several transformative technologies from dual In-line packaging in 1970, to the current 3D packaging technology. Features of 2.5D and 3D technologies include 30-40% more compactness, 2x to 3x faster speeds, increased scalability, and design flexibility at minimal costs.

Intel, Samsung, and TSMC increasing their 10nm finFET production ahead of the projected increase in demand. TSMC plans to produce 7nm finFET. Industry players such as TSMC, GlobalFoundries, Intel, and Samsung are investing in R&D activities for introducing technologies beyond 5nm in downsizing the chip sizes. The scalable and processing efficiencies offered by these products is expected to facilitate their demand. However, with growing miniaturization, cost associated with SoC designing is expected to witness considerable surge. Our analysis shows that the SoC designing at 5nm will cost over US$ 500 million which in turn, is projected to result in a shift in consumer preference towards alternative packaging technologies such as 7nm, 10nm, and 28nm.

Fabless manufacturing

Fabless manufacturing defines the business model that involves designing and sale of semiconductor chips and hardware devices, while outsourcing fabrication of the components. Labor intensive assembly tasks of the chips were mostly outsourced since the 1960s. Texas Instruments, Analog Devices, and Intel were among the few early adopters of outsourcing fabrication operations, and to overcome challenges that included weak infrastructure, growing production demand, and long supply lines. Fabless business models have helped market players gain an average annual EBITDA of around 15%. Outsourcing of fabricating operations has helped in achieving exceptional product qualities through specialist process operations. For instance, semiconductor fabrication operations are outsourced to foundries. TSMC, UMC, GlobalFoundries, Samsung, SMIC, Powerchip, TowerJazz, Vanguard International, and Fujitsu Semiconductor accounted for around 90% of the total semiconductor foundry market share in 2014.

Semiconductor processing technology is rapidly shifting to larger wafer fabrication that involves higher capital expenditure and operational costs for testing and assembling. Thus, industry participants are expected to remain inclined towards fabless manufacturing and focus on their fundamental capabilities, and outsource third party expertise for packaging, testing, and assembling of semiconductor devices.

Application Industries

Brazil, Russia, India, and China are projected to be key markets for semiconductors. In the last few years, the average number of semiconductors used per vehicles has increased owing to usage in safety systems, drivetrain technologies, telematics, ADAS, and hybrid and electric cars. Freescale Semiconductor, Infineon, STMicroelectronics, Texas Instruments, Renesas and Cypress are among the major players in the automotive semiconductor business domain.

Trends such as connected cars and autonomous driving or driverless cars have garnered interests of the automotive brands such as Volvo, BMW, Daimler, and GM. This is expected to generate huge investments in the semiconductor industry owing to the utilization of semiconductors in all the components including actuators, sensors to communication and infotainment devices. Moreover, growing energy demand, increasing inclination towards harnessing renewable sources, proliferation of high speed rail transportation, rampant penetration of electronic devices and smart grids will generate huge industrial application demands for semiconductors. According to our analysis, the focus on enhancing capacities of data storage has increased in the past few years owing to the requirements to tackle network congestions, privacy, power reliability, and enable secure access from any place across the globe. Moreover, data processing and communication market will also drive strong sales owing to increased usage of phablets, laptops and desktops across the globe.

Regional Landscape

China has emerged as the single largest manufacturer and consumer of semiconductor electronics over the last decade, and is expected to continue its dominance over the forecast period. According to Semiconductor Industry Association (SIA), annual sales in China increased by 14% in 2016. U.S. semiconductor market is expected to remain the designing and skill intensive process development hub for the industry. Advent of V2V communication and cloud mobility solutions in the region are expected to provide considerable growth prospects over the next few years.

Industry Landscape

Key players operating in the semiconductor industry are Intel, Samsung, TSMC, Broadcom, Qualcomm, SK Hynix, Micron, TI, Toshiba, and NXP. The industry has witnessed consistent disintegration in order to maintain constant focus on specialized businesses skills. However, there have been some instances of reintegration of these specialized business skills by major technology players. For instance, in October 2016, Qualcomm Inc. announced its acquisition of NXP Semiconductors for over US$ 47 billion. The strategy was to diversify Qualcomm business through the acquisition.

R&D activities in the semiconductor industry over the past few years are expected to continue over next few years. However, increasing capital investments to cope with the miniaturization are likely to present a significant challenge for players operating in the industry.

View More

Semiconductors Published Insights

Coherent Market Insights Radio Frequency Generator Market

Published Date : Jan 2024

The radio frequency generator is a device that produces signals for various applications. It can be used in wireless and cellular communications, radar, electronic warfare, and others. Its ability to vary the signal's amplitude, frequency, and other characteristics is... View more

Coherent Market Insights Electronic Chemicals Market

Published Date : Dec 2023

The electronic chemicals market has been growing steadily over the past few years. Electronic chemicals refer to the various chemicals that are used in the manufacturing of electronic components and products. They play a vital role in ensuring functionality, performan... View more

Coherent Market Insights General Electronic Components Market

Published Date : Dec 2023

Global general electronic components market has been witnessing steady growth over the past few years due to rapid advancements in semiconductor technologies. Electronic components are integral to almost every electronic device across various industries such as consumer electronics, automotive, i... View more

Coherent Market Insights Server Pcb Market

Published Date : Dec 2023

Printed Circuit Boards (PCBs), abbreviated as PCBs, are commonly known as the "central component of electronic system products" due to their crucial role as the primary electrical connectors for electronic components. Within the supply chain, PCBs are predominantly ut... View more

Coherent Market Insights Programmable Silicon Market

Published Date : Dec 2023

In the realm of non-terrestrial networks (NTN), programmable silicon is emerging as a transformative force, introducing adaptability and optimization capabilities that redefine network operations. While satellite communications have long been a stalwart in connecting ... View more

Coherent Market Insights Foundry Service Market

Published Date : Dec 2023

The foundry service market refers to the manufacturing industry that produces metal castings from various ferrous and non-ferrous materials. Foundries are involved in activities such as melting, alloying, casting, and heat treatment as contracted by original equipment... View more

Coherent Market Insights Precision Meter Market

Published Date : Dec 2023

The global precision meter market has been witnessing significant growth over the past few years owing to burgeoning demand from various industries including automotive, healthcare, electronics manufacturing and construction. Precision meters are used to measure diffe... View more

Coherent Market Insights Peer To Peer Carsharing Market

Published Date : Dec 2023

Peer-to-peer car sharing is an innovative approach to car rental that allows people to rent out their personal vehicles or use other people's cars for short periods of time. By leveraging modern technology and the sharing economy model, peer-to-peer car sharing platfo... View more

Coherent Market Insights Submarine Battery Market

Published Date : Dec 2023

A submarine is a watercraft, which is used for various commercial and military applications. In submarines, a battery plays a major role in its smooth running. Submarines require high electric power to operate the equipment on board. For power supply, submarines are e... View more

Coherent Market Insights Led Rental Market

Published Date : Nov 2023

The global LED rental market has seen significant growth in the recent years owing to increasing demand for energy-efficient and cost-effective lighting solutions across various industries. LED rental services provide an economical alternative to buying expensive LED ... View more

Coherent Market Insights Depot Repair Service Market

Published Date : Nov 2023

... View more

Coherent Market Insights Ribbon Cable Market

Published Date : Nov 2023

Ribbon Cable, also known as multi-planar cables or flat ribbon cable, is a type of cabling that has many conductors on one single flat plane. This gives them a look that resembles ribbon and is where they get their name from. They are used in many electronics, such as... View more

Coherent Market Insights Structural Battery Market

Published Date : Nov 2023

Structural Battery Market Detailed Segmentation: By Material Type Metal-Based Structural Batteries Polymer-Based Structural Batteries Composite-Based Structural Batteries By Application... View more

Coherent Market Insights 3d Printed Antenna Market

Published Date : Nov 2023

The antenna developed using 3D printing technology is known as 3D printed antenna. It helps in rapid prototyping of the antenna design. 3D printing is commonly used to manufacture dielectric-based antennas due to the fact that printing dielectric materials is far easi... View more

Coherent Market Insights Flash Based Array Market

Published Date : Sep 2023

An all-flash array is a storage device that contains only flash memory drives, and it majorly based on high speed, electrically programmable memory. All-flash storage is also referred to as a solid-state array, and it offers speed, agility, and performance, for the bu... View more

Coherent Market Insights Semiconductor Assembly And Testing Services Market

Published Date : Aug 2023

Manufacturing semiconductors, microcircuits, and microchips requires extremely precise conditions to be kept in the production/processing area. Hygroscopic components are typically employed in semiconductor manufacturing or processing, making them extremely vulnerable... View more

Coherent Market Insights Circuit Protection Market

Published Date : Jul 2023

An electric circuit is a closed path of charge between a power source, connecting wires and electric devices. Every circuit has a maximum amount of current it can allow to pass through - over this, the wires could overheat and melt or fires might break out. Thankfully... View more

Coherent Market Insights Computer Numerical Control Machine Market

Published Date : Jul 2023

CNC (Computer Numerical Control) machines are fully automatic solutions for computer-controlled metalworking tools. This machine has become a key component of the machine tool industry as it offers advantages to various end-use industries such as automotive and manufa... View more

Coherent Market Insights Chipless Rfid Market

Published Date : Jul 2023

The global chipless RFID market is a rapidly evolving sector with immense potential and opportunities for growth. Chipless RFID technology eliminates the need for traditional silicon-based chips, offering a cost-effective alternative for various industries. With its s... View more

Coherent Market Insights Flexible Display Market

Published Date : Jul 2023

In the field of display technology, the global flexible display market has emerged as a disruptive force that has revolutionized the interaction with electronic devices. Due to the growing demand for innovative products, the market for flexible displays has grown sign... View more

© 2024 Coherent Market Insights Pvt Ltd. All Rights Reserved.