Integrated Circuits Market Size (2024 - 2029)

Integrated Circuits Market Analysis

The Integrated Circuits Market is the core of the Information Technology (IT) industry; it is a basic, strategic, and leading industry supporting economic and social development. With market demand, the integrated circuit industry has been experiencing rapid growth and improved general competency in recent years. The integrated circuit design and manufacturing industry have been keeping pace with global development.

• The Global Integrated Circuits industry is undergoing an important phase of transformation and adjustment. The global market order has been going through an accelerated adjustment period, investment volumes are substantially increasing, and market share is becoming concentrated among dominant companies.
• New trends such as the Internet of Things (IoT), cloud computing, and big data are progressing rapidly, which is expected to lead integrated circuit technology in new directions.
• Regional governments are extending their support to develop their national IC industry ecosystem. For instance, China has been aggressively building new fab capacities, accelerated by the introduction of the China Integrated Circuit Investment Fund. According to SEMI China, these investments are paying off, as China's wafer fab capacity market share surged from 9% in 2010 to 17% in 2020.
• The surge in demand for high-tech products was further accelerated by working from home, lockdown, and a shift to e-commerce. IC market players didn't expect this tremendous demand in the last few years. Building new fabs cost billions of dollars and took years to operational; the unexpected surge caused a global shortage of ICs due to limited manufacturing capacity. The market is expected to normalize not until 2023.
• The COVID-19 pandemic has impacted multiple sectors of the Integrated Circuits industry. The global supply chain was disrupted owing to transport stoppages, border closures, and general uncertainty leading to challenges in IC production. COVID-19 exposed many vulnerabilities in the supply chain.

Integrated Circuits Industry Segmentation

An Integrated Circuit (IC) is also called a microchip, microelectronic circuit, or chip, an assembly of electronic components fabricated as a single unit. These units are integrated with miniaturized with active devices (e.g., diodes, transistors, etc.) and passive devices (e.g., resistors, capacitors, etc.), and their interconnections are established on a thin substrate of semiconductor material (usually silicon).

The Global Integrated Circuits Market is Segmented by Type (Digital IC, Analog IC, Mixed-Signal IC), Product Type (General-Purpose IC, Application-Specific IC), End-user Industry (Consumer Electronics, Automotive, IT & Telecommunications, Manufacturing, and Automation), and Geography.