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 Power Management Ics Market

Published Date : Apr 2023

Power management integrated circuits (PMICs) is an electronic device, which is used to control and manage power in an effective manner. These integrated circuits are commonly used in any consumer electronics device including portable media players, medical equipment, ... View more

Coherent Market Insights Secondary Battery Market

Published Date : Feb 2023

Secondary batteries, also known as rechargeable batteries, are used to power portable electronic devices and electric cars. They are also an important part of the global energy storage market. Various rechargeable batteries are available, including lithium-ion, lead-a... View more

Coherent Market Insights Tilt Sensor Market

Published Date : Feb 2023

Tilt sensors are used for the detection of tilting position and for determining the inclination angle in various applications. These devices are used in a number of industries for making decisions related to operations and ensuring safety. They are available in a vari... View more

Coherent Market Insights Solid Oxide Fuel Cell Market

Published Date : Feb 2023

Solid Oxide Fuel Cells are rapidly emerging as a viable alternative to conventional combustion-based power generation. Designed to deliver higher efficiencies and greater versatility in the use of ... View more

Coherent Market Insights Mems Pressure Sensors Market

Published Date : Feb 2023

Pressure sensors are vital to a number of applications. They are required in many sectors and their use is gaining popularity. MEMS pressure sensors can be either capacitive or piezoresistive. Capacitive pr... View more

Coherent Market Insights 3d Scanning Market

Published Date : Feb 2023

3D scanning is a technique that captures and analyses real world objects. It is used in a wide range of fields. This technology is also gaining traction in the gaming industry, which is seeing rapid advancement. Many of the most common types of 3D scanners work with ... View more

Coherent Market Insights Industrial Battery Market

Published Date : Feb 2023

Batteries are manufactured to perform in extreme conditions. They can be used in remote locations, such as on boats and in arctic climates. Industrial batteries are designed to handle heavy use and vibrations. However, the initial cost can be high, especially when com... View more

Coherent Market Insights Optical Transceiver Market

Published Date : Feb 2023

Optical transceivers are used in data centers because they can support high-speed communication at distances up to 120km. These devices are used to connect switches and computers together in an Ethernet network. The ability to operate in a wide range of temperatures a... View more

Coherent Market Insights Wigig Market

Published Date : Jan 2023

Developed by the Wireless Gigabit Alliance, WiGig is the next generation of high-speed wireless networking. Although the technology has not yet hit the market, its promises are exciting. Some of its key benefits include increased speed, low latency, and reduced interf... View more

Coherent Market Insights Grow Lights Market

Published Date : Jan 2023

The use of LEDs for grow lights reduces the cost of maintenance. Unlike traditional grow lights, LEDs use low power and emit low heat radiations, and therefore, they can be used in indoor environments. The average LED grow light will draw 32 watts to cover a square fo... View more

Coherent Market Insights Breathing Battery Market

Published Date : Jan 2023

Breathing battery is battery which generates electricity through the lithium oxidation process. As compared to standard lithium-ion batteries, the breathing battery combines the benefits of both lithium and oxygen, providing approximately 5 to 20 times the specific en... View more

Coherent Market Insights Laser Processing Market

Published Date : Jan 2023

Laser Processing is the laser beam radiation to the surface of work piece that is used to melt material and change the properties of the material by using high energy emission. Laser processing technologies is used for marking/engraving consumer goods, electronic comp... View more

Coherent Market Insights Hazardous Location Led Lighting Market

Published Date : Jan 2023

The National Electrical Code and the Canadian Electrical Code are some of the regulations governing the use of hazardous location lighting. Both of these codes specify a series of requirements that must be met before a light is considered to be suitable for hazardous ... View more

Coherent Market Insights Cable Glands Market

Published Date : Jan 2023

A cable gland has an inner component that has a rubber or elastomer seal. The inner part of the gland closes when the nut is tightened. This helps to prevent kinking of the cable and protects the line from corrosive elements. Besides preventing kinking, the rubber or ... View more

Coherent Market Insights Elevator Control Market

Published Date : Jan 2023

Elevator Control systems are the devices that control the functions and services of an elevator. An elevator control system includes a power circuit for the lifting motor, an accumulator, and a pump that pushes pressurized fluid from a tank toward the cylinder. The mo... View more

Coherent Market Insights Microelectromechanical Systems Mems Market

Published Date : Jan 2023

Microelectromechanical systems are used in many fields and are widely found in the aerospace, industrial, and healthcare industries. MEMS are also used in smart wearables. Although the concept of a micro-mechanical device is simple, it is actually difficult to build o... View more

Coherent Market Insights Laser Displacement Sensor Market

Published Date : Jan 2023

A laser displacement sensor contains a light-emitting element and a position-sensitive detector (PSD), which detects its target by using the triangulation method. In this, a semiconductor laser is utilized as a light-emitting element. Moreover, a lens focuses the beam... View more

Coherent Market Insights Embedded Temperature Sensor Market

Published Date : Dec 2022

Temperature sensors are used to detect heat or temperature. These sensors detect physical temperature and provide results in analog and digital form. These sensors are used in various industries such as automotive, healthcare, metal manufacturing, aerospace and defens... View more

Coherent Market Insights Passive Electronic Components Market

Published Date : Dec 2022

Passive electronic components are used in a variety of different applications, from light sensors to alarm systems. Passive components can store energy. They can also dissipate it. The energy can be stored in the form of an electric field or a magnetic field. Som... View more

Coherent Market Insights Photonic Ic Market

Published Date : Dec 2022

Photonics integrated circuits is a breakthrough technology that uses photons as data carriers as compared to the electron that is used in electronic ICs. The main difference between electronic integrated circuits and photonic ICs lies in the type of raw material used ... View more

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