Market Trends of Semiconductor Industry
The Discrete Semiconductors Segment is Expected to Hold a Significant Share in the Market
- The discrete semiconductors segment includes devices like MOSFET, IGBT, bipolar transistors, thyristors, and rectifiers. The rising need for high-energy and power-efficient devices, the increasing prevalence of wireless and portable electronic products, and the increased use of these devices in the automotive industry due to the transition toward electrification are some of the key factors driving the segment's growth.
- One of the significant trends in discrete semiconductors is efficient power management. New system architectures improve AC-DC power adapters' efficiency while reducing their size and component count. New standards for power-over-ethernet (PoE) allow higher power transfer, enabling the development of new devices, like connected lighting.
- MOSFET has always played an essential part in the telecom sector, as switching power supplies are the most prevalent application for power MOSFETs, which are also commonly utilized for MOS RF power amplifiers, allowing mobile networks to move from analog to digital. According to Ericsson, 5G subscriptions are expected to increase drastically globally from 2019 to 2028, from over 12 million to over 4.5 billion subscriptions, respectively. Such reasons are expected to spur the demand for power semiconductors, increase the demand for MOSFETs, and lead to several breakthroughs in the telecom sector.
- The increasing demand for consumer electronic appliances like UPS, power conditioners, and air conditioners, which use discrete IGBT types for lower-current applications, is credited with driving the growth of the discrete IGBT market. Discrete IGBTs have been found to have the lowest power losses in consumer goods, which is expected to be a key factor influencing the segment's growth in the market.
- Furthermore, rectifiers are mainly used as AC-to-DC converters to generate DC power from an AC source. Almost all electronic equipment's power supplies contain rectifiers. Linear and switched-mode power supplies are two basic categories of AC/DC power supplies. In such a power supply, the rectifier will be connected in series with the transformer, followed by a smoothing filter and perhaps a voltage regulator. The market is expected to expand due to rising demand for rectifier diodes in various power sector applications and the miniaturization of conventional electronic equipment.
- Rectifiers are frequently used in electrical components to reference voltages, rectify voltages, change the size of signals, and isolate signals from their sources. Distinct rectifiers are utilized in electronic parts circuits to guard against the risks caused by the forced reversal of supply voltage. Rectifiers are essential components of DC power supplies and HVDC transmission systems. Therefore, the need for rectifiers is anticipated to be driven by factors such as rising government spending on power distribution infrastructure and increasing demand for smart grids.
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Asia-Pacific is Expected to Hold a Significant Share in the Market
- Asia-Pacific in the global market is anticipated to emerge as a prominent hub for equipment manufacturers to capitalize on the available prospects. This region has a substantial presence of semiconductor and electronic product manufacturers, predominantly in countries such as China, India, Taiwan, and Japan. Furthermore, numerous regions within Asia-Pacific are making substantial investments to augment their production capabilities, fueling the demand for semiconductor manufacturing equipment in the region.
- For instance, Taiwan plays a significant role in the semiconductor industry and substantially needs advancements in emerging technologies like 5G, IoT, AI, and big data. Additionally, the surge in investment toward new fab equipment to produce semiconductor goods is expected to drive market expansion in the coming years. Moreover, semiconductor manufacturing equipment manufacturers employ various tactics such as mergers, joint ventures, acquisitions, new product advancements, and regional expansion to enhance their market presence and meet evolving technological requirements.
- For instance, in October 2023, Tokyo Electron launched the Betelex 2700 PICP EX Plus, a cutting-edge chamber with superior plasma etching capabilities for 8.7th generation 1 glass substrates. This development was driven by the need to cater to the requirements of high-definition, high-value, and expansive displays in producing 8.7th-generation organic EL displays for IT products. Tokyo Electron successfully created the 8.7th generation plasma module PICP EX Plus to address these demands.
- In April 2023, Samsung Electronics Co., a significant foundry player, began package turnkey service for contract chip manufacturing. It aims to take on global player Taiwan Semiconductor Manufacturing Co. (TSMC) amid rapid growth in the artificial intelligence sector. Samsung focuses on the technology of packaging its flagship products, such as DRAMs, together with central processing units (CPUs) to attract Big Tech names, such as Alphabet Inc.’s Google LLC, which are developing their own AI semiconductors, as customers for the service.
- Moreover, semiconductor fabrication facilities in Asia-Pacific countries such as China, Singapore, and Korea are enhancing their activity. Numerous multinational memory manufacturers direct a large amount of investment into the Chinese semiconductor fabrication market. The country’s government initiatives, such as Made in China 2025, especially support these initiatives. Such initiatives are expected to draw more investments into the country, thus driving the market during the forecast period.
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