Market Trends of Semiconductor Device Industry For Processing Applications
Memory Segment Under Integrated Circuits is Expected to Boost The Demand in The Market
- The semiconductor memory is a digital electronic data storage device implemented with semiconductor electronic devices on an integrated circuit. Different types of memory are available, such as DRAM, SRAM, Nor Flash, NAND Flash, ROM, and EPROM. They find widespread application in digital consumer products like PCs, laptops, cameras, and phones.
- The increasing demand for data centers is also bolstering the demand for memory components. Currently, large data center projects in North America have contributed to the strong demand for memory, such as DRAM. However, according to the measure of data center space per user, China's internet data centers are poised to grow to at least 22 times that of the United States or at least 10 times the current space of Japan. Hence, DRAM has a significant opportunity for growth and thus is impacting the semiconductor device industry.
- Further, the growth of the portable systems market attracted the semiconductor industry's interest in non-volatile memory (NVM) technologies for mass storage applications. The rise in demand for greater efficiency, faster memory access, and low power consumption are some of the significant factors driving the NVM market growth. There is an increasing need for NVM in data center applications to protect data losses from a sudden power outage. With the growth of data centers, the adoption of next-generation non-volatile memory is also expected to increase, driving market growth.
- Moreover, according to WSTS, In 2022, it is projected that revenue from memory component sales will amount to USD 134.41 billion, and in 2021 the recorded revenue of USD 154.84 billion. However, the revenue from memory component sales decreased, with an estimated amount of USD 111.62 billion, but it is likely to grow in the near future, and by the end of 2023, it will achieve good growth. Such factors are likely to boost the market growth.
- Samsung participates in partnerships; end users may be sure that various device suppliers and vertically integrated hardware and software firms will support its upcoming storage solutions. For instance, in March 2022, Samsung Electronics and Western Digital agreed to work together to standardize and promote next-generation data placement, processing, and fabrics (D2PF) storage technologies. They hope that by taking these steps, the industry will be able to concentrate on a wide range of applications that will ultimately provide customers with more value.
- Also, in July 2022, Micron Technology, Inc. announced that it had begun volume production of the world's first 232-layer NAND, built with industry-leading innovations to drive unprecedented performance for storage solutions. The company's 232-layer NAND is a watershed moment for storage innovation as the first proof of the capability to scale 3D NAND to more than 200 layers in production.
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European Region Expected to Witness the Significant Growth
- The European region is home to some of the most crucial technology hubs across the globe and a critical driver and adopter of modern technology. The increasing penetration of advanced technologies and the increasing adoption of semiconductors drives market growth in the region.
- With the rise of the Internet of Things (IoT), semiconductor devices are being incorporated into all types of devices, with a wider range of computing and data storage applications. Demand for these devices is also steadily increasing. Materials and architecture are steadily evolving to improve the performance of cutting-edge memory and logic devices, power semiconductor devices, and various types of sensors.
- Furthermore, the rollout of 5G is perceived to be the enabler of IoT connectivity, automation, and edge technologies. New devices in this smarter standard will require fabs to produce higher-performing wafers with even greater capacity for memory and storage.
- 5G networks and technology are further revolutionizing wireless communications by transforming existing market sectors and industries. As per the company, between 2021 and 2025, 5G will drive up to EUR 2.0 trillion (USD 2.17 trillion) in total new sales across all major industries in the European economy. As such, new devices that enable 5G will require fabs to produce higher-performing wafers with even greater capacity for memory and storage.
- In March 2022, Intel issued the first phase of its EUR 80 billion (USD 86.84 billion) investment plan in the EU over the next decade across the semiconductor value chain, including R&D, manufacturing, and packaging technologies. Further in this investment, the company plans to invest approximately EUR 17 billion (USD 18.45 billion) in establishing a semiconductor fab mega-site in Germany, as well as the development of a new R&D and design facility in France, and to invest in R&D, manufacturing, and foundry services in Italy, Poland, Ireland, and Spain.
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