Asia Pacific Integrated Circuit (IC) Market Market Size (2024 - 2029)

Asia Pacific Integrated Circuit (IC) Market Analysis

The Asia Pacific Integrated Circuit Market is expected to register a CAGR of 8.54% during the forecast period.

With the increasing use of mechatronics in consumer, industrial, telecom, and automotive applications, the demand for electronic components with integrated circuits is expected to drive market growth.

• An integrated circuit (IC) is a small silicon semiconductor chip. It is an electronic component assembly comprising fabricated miniature active and passive devices. ICs are used in various industries, including automotive, telecommunications, electrical, electronics, and medicine.
• One of the key factors boosting the demand for ICs is the increasing investment by fabs to improve production capabilities. For example, the Indian government intends to establish an "India Semiconductor Mission" with an investment of INR 76,000 Crores (approximately USD 10 Billion) to drive long-term strategies for the chip and display industries' sustainable development. Such initiatives to expand chip manufacturing capabilities will propel the market.
• The growing use of application-specific Analog integrated circuits in consumer electronics such as smartphones, PCs, Smartwatches, and tablets is expected to drive regional demand. An ASIC is an integrated circuit designed specifically for a particular application or purpose. These Integrated Circuits (ICs) combine all electronic components onto a single chip.
• Moreover, one of the significant factors driving IC demand is the region's increasing investments in expanding consumer electronics production. For example, in January 2021, the Chinese government hoped to increase the domestic market for electronic components to RMB 2.1 trillion (327 billion USD) by 2023. Such government initiatives are expected to boost demand for IC components and devices used in consumer electronics.
• The APAC's integrated circuits market is gaining traction, owing to high demand in various industries ranging from consumer electronics (smartphones, laptops, digital cameras) to automobile industries. Furthermore, technological advancements in several regions' IT and telecommunications initiatives are expected to boost the market.
• The increasing adoption of 5G technology drives demand for 5G-enabled smartphones while also assisting in the digitization of other industries. High-speed data connectivity enabled by 5G is expected to benefit industrial automation and the adoption of advanced technologies such as AI, IoT, etc. According to the Ministry of Industry and Information Technology, by the second quarter of 2022, the number of 5G base stations in China surpassed 1.85 million. The country added nearly 300,000 5G base stations in the second quarter of 2022. Such developments are expected to create demand for ICs.
• Moreover, the market is expected to be fueled by the increasing installation of memory devices across various industries. With multiple product launches, acquisitions, and expansions, significant vendors in the APAC region are also contributing to the market's growth. For example, GigaDevice introduced the GD25UF series of SPI NOR Flash in March 2023 as part of its strategic roadmap of 1.2V Flash products supporting SoCs and applications processors built on advanced function nodes. The GD25UF SPI NOR Flash products are designed for applications requiring extremely low power consumption or a small board footprint.
• The automotive industry accounts for a sizable portion of the region's total demand for analog integrated circuits. In addition, the steps taken to increase the adoption of autonomous vehicles drive demand for analog integrated circuits. The Japanese government passed legislation in August 2022 to establish new rules for next-generation mobility, such as unmanned self-driving vehicles, automated delivery robots, and electric kick scooters. Government initiatives to advance the automotive industry are expected to increase demand for integrated circuits.
• One of the factors limiting market growth is the complex fabrication process caused by decreasing chip size. There are numerous design challenges in today's IC technology. The manufacturing process for advanced technology nodes is highly variable. Analog integrated circuit (IC) design, for example, focuses on developing courses that operate in and are optimized for continuous time-domain behavior. Such factors are expected to restrain the market's growth.
• However, factors such as the recent US government ban on advanced electronic design automation (EDA) software exports to China may prevent Chinese chip companies from accessing advanced semiconductor technology, which may hurt the country's IC market growth.

Asia Pacific Integrated Circuit (IC) Industry Segmentation

An integrated circuit (IC), a chip, microchip, or microelectronic circuit, is a semiconductor wafer fabricating thousands or millions of tiny resistors, capacitors, diodes, and transistors. ICs can be used for various purposes, such as amplifiers, video processors, computer memory, switches, and microprocessors, in various applications such as communication systems, computing devices, consumer electronics, automotive, and others.

Asia Pacific integrated circuit (IC) market is segmented by type (analog (general-purpose IC, application-specific IC), logic (TTL (transistor transistor logic), CMOS (complementary metal oxide semiconductor), mixed-signal IC), memory (DRAM, flash), micro (microprocessors (MPU), microcontrollers (MCU), digital signal processors )), application (consumer electronics, automotive, IT & telecommunications, industrial) . The report offers the market size in value terms in USD for all the abovementioned segments.