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East Asia - Semiconductor Market size is estimated to grow at a CAGR of 6.21% between 2023 and 2028. The market size is forecast to increase by USD 99.54 billion. The growth of the market depends on several factors, including the increasing automation in automobiles, the sustainable growth in the global semiconductor industry, and the increasing use of advanced driver assistance systems in the automotive industry. A semiconductor IC functions as a timer, an amplifier, and a microprocessor, and it has a data storage capability. Manufacturers fabricate ICs using designs provided by fabless semiconductor companies. Fabless semiconductor companies design and sell hardware devices and semiconductor chipsets. However, fabless semiconductor companies outsource the fabrication process of hardware devices to semiconductor foundries. Semiconductor ICs find applications in major segments, including communications, consumer electronics, automotive, and industrial.
The report offers extensive research analysis on East Asia - Semiconductor Market, with a categorization based on End-user, including memory, foundry, and IDM. It further segments the market by Product, encompassing ICs, optoelectronics, discrete semiconductors, and sensors. Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD billion) for all the mentioned segments.
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One of the key factors driving the East Asia semiconductor market growth is the increasing use of advanced driver assistance systems in the automotive industry. There is an increasing demand for ADAS as they help in monitoring, warning, braking, and steering tasks, which are expected to increase over the next decade, which not only helps fuel the East Asia - semiconductor market but also increases consumer interest in safety applications. In addition, many of the semiconductor companies have now been offering ADAS products and developing them.
Moreover, as new technology is developing, much uncertainty persists about the market, which comprises consumer feedback and its advanced applications where computer controls assist with steering and other critical driving functions. In addition, the driver heavily relies on the combination of sensors, cameras, and semiconductors to perform tasks such as collision warnings, adaptive cruise control, and others, which enhances the safety of vehicles. Therefore, due to such advancements and the vast applications of semiconductors in the automotive industry, the ADAS will drive the growth of the East Asia semiconductor market during the forecast period.
A key factor shaping the East Asia semiconductor market growth is the developments in sensor technologies and communication devices. There is an increasing adoption of sensors across various industries as they help in achieving enterprise mobility, remote monitoring, and remote controlling of systems. In addition, all these factors pave the way for significant cost savings and boost revenues.
Moreover, the increased adoption of communication services and the emergence of new players in the market are factors that have led to a decline in the prices of communication devices. In addition, technological advances have helped manufacturers standardize the capacity and throughput of their products, resulting in the simplification of the manufacturing process at low costs. Hence, such factors are driving the East Asia semiconductor market growth during the forecast period.
Excess semiconductor inventory is one of the key challenges hindering the East Asia semiconductor market growth. The main challenge faced by the East Asia semiconductor market is the overstock of semiconductors. In addition, as the semiconductor market is extremely volatile, demand forecasting becomes a significant challenge. For instance, in the second quarter of 2022, the average inventory period increased to 121 days from 117 days in the last quarter of 2021.
Moreover, the high level of inventory in the industry is majorly due to the gradual decrease in the demand for DRAM and NAND memory. In addition, with respect to semiconductors, the release of a new generation of any product class by competitors and its successful adoption in the market may lead to an entire line of equipment being written off. Therefore, the excess components purchased during a bulk sale by suppliers may also need to be written off, which can lead to huge operational losses. Hence, such factors hinder the East Asia semiconductor market growth during the forecast period.
The memory segment is estimated to witness significant growth during the forecast period. The increasing adoption and development of NOT-AND (NAND) technology will fuel the growth of the memory segment. In addition, many prominent memory device manufacturers have announced the development and commercialization of various products integrated with such technology.
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The memory segment was the largest segment and was valued at USD 130.72 billion in 2018. Moreover, the manufacturing process of such advanced NAND is highly complicated and requires advanced manufacturing equipment. In addition, the market for such advanced technology has high growth potential. Hence, many companies, such as Samsung, are investing heavily in revamping and increasing their production lines. Therefore, it will fuel the growth of the memory segment of the East Asia semiconductor market during the forecast period.
The wide range of applications of ICs segment in various industries will increase the market growth. IC segment refers to small squares or rectangles of semiconductor material, which are often silicon-made and contain electronic circuits that are laid down and made to perform computation or other tasks. In addition, this segment is embedded in a number of transistors and other devices, which are onto a single piece of silicon and form the interconnections within silicone itself. Some of the main classifications of ICs include analog, digital, and mixed-signal circuits. Moreover, this segment is the building block of modern electronic devices and plays a fundamental role in powering various industries. Hence, the wide range of applications will fuel the growth of this segment which in turn drive the East Asia semiconductor market growth during the forecast period.
The East Asia semiconductor market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
East Asia Semiconductor Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Broadcom Inc: The company offers semiconductors such as SAS IO controllers, ROC ICs, and SAS expander IC.
GigaDevice Semiconductor Inc: This company offers semiconductors by the name ARM Cortex M3 or Cortex M4 cores.
Ingenic Semiconductor Co. Ltd: The company offers semiconductors for various applications such as image recognition, smart gateways, smart appliances.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The East Asia semiconductor market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018-2028.
East Asia Semiconductor Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.21% |
Market Growth 2024-2028 |
USD 99.54 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.75 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Broadcom Inc., GigaDevice Semiconductor Inc., Ingenic Semiconductor Co. Ltd., MediaTek Inc., NXP Semiconductors NV, Qualcomm Inc., Renesas Electronics Corp., Restar Holdings Corp., ROHM Co. Ltd., Samsung Electronics Co. Ltd., Shanghai Fortune Techgroup Co. Ltd, Sharp Corp., SK hynix Co. Ltd., Sony Group Corp., STMicroelectronics International N.V., Taiwan SEMICONDUCTOR CO. LTD, Taiwan Semiconductor Manufacturing Co. Ltd., TDK Corp., Toshiba Corp., and United Microelectronics Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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