Asia-Pacific Semiconductor Device Market Size (2024 - 2029)

Asia-Pacific Semiconductor Device Market Analysis

The Asia-Pacific Semiconductor Device Market size is estimated at USD 466.12 billion in 2024, and is expected to reach USD 695.73 billion by 2029, growing at a CAGR of 8.34% during the forecast period (2024-2029).

The increasing demand for semiconductor devices from the electronics and automotive industries is expected to contribute significantly to revenue generation in the coming years; however, a shortage of skilled labor-intensive tasks may impede industry expansion in the coming years.

• In recent years, India has witnessed a significant surge in the usage of connected devices, including smart home devices and wearables. According to Cisco, India will have around 2.1 billion Internet-connected devices by 2023. The country is also expected to cross the 900 million mark of Internet users, according to the recently published Cisco Annual Internet Report (2018-2023), owing to the increased penetration of affordable smartphones and cheaper Internet plans. Demand for connected devices will drive the market's growth during the forecast period.
• In April 2023, Japan's trade minister pledged the government will increase its financial support for chipmaker Rapidus as it works to develop advanced semiconductors, claiming domestic production of such components is crucial for the country to excel in artificial intelligence and autonomous driving. The project is noticed as a quasi-public sector effort, with Rapidus becoming a potential national champion as the country tries to develop a robust local chip sector. The government contributed USD 530 million in financial aid for its launch.
• Moreover, Taiwan Semiconductor Manufacturing Co. and Sony Corp., in November 2021, announced that they would establish a USD 7 billion chip facility in Japan by the end of 2024. As trade tensions between China and the United States threaten to disrupt supply chains and demand for essential components grow, Sony Corp. has announced a USD 500 million investment in factories to provide chips to Japan's electronic device makers and auto businesses. Such investments are likely to boost the growth of the studied market.
• Further, the growing reliance on digital connectivity across various end-user industries has led to a sharp rise in data usage worldwide. For instance, according to Nokia's annual Mobile Broadband Index (MBiT) report, the average data consumption per user in India reached 19.5GB per user a month in 2022, equivalent to 6,600 songs. Mobile data traffic in India jumped 3.2 times in the last five years, reaching over 14 exabytes per month towards the end of 2022. Increased online education, work-from-home model, and higher over-the-top (OTT) viewership increased data traffic. Such factors are aiding the growth of the market for data centers.
• Conversely, the semiconductor industry faces various challenges in developing and producing semiconductor devices. A major challenge is that as transistors continue to get smaller, maintaining the same performance and reliability becomes more challenging. Further, due to the high complexity of modern semiconductor devices, there is a need for efficient heat dissipation. Issues with thermal management can lead to reduced device lifetime and performance. However, variability among individual devices is prevalent in semiconductor manufacturing and can lead to problems with yield and reliability.

Asia-Pacific Semiconductor Device Industry Segmentation

A semiconductor device is an electronic component that relies on the electronic properties of semiconductor material for its function.

The Asia-Pacific semiconductor device market is segmented by device type (discrete semiconductors, optoelectronics, sensors, integrated circuits [analog, logic, memory, micro [microprocessors, microcontrollers, and digital signal processors]]), by end-user vertical (automotive, communication [wired and wireless], consumer, industrial, and computing/data storage), and by country (Japan, China, Korea, Taiwan, and Rest of Asia-Pacific). The report offers market forecasts and size in value (USD) for all the above segments.