South Korea Analog Integrated Circuits Market Size
| Study Period | 2018 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 2.77 Billion |
| Market Size (2029) | USD 3.58 Billion |
| CAGR (2024 - 2029) | 5.27 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South Korea Analog Integrated Circuits Market Analysis
The South Korea Analog Integrated Circuits Market size is estimated at USD 2.77 billion in 2024, and is expected to reach USD 3.58 billion by 2029, growing at a CAGR of 5.27% during the forecast period (2024-2029).
- Analog integrated circuits (ICs) are essential components in many electronic devices. They are designed to process continuous signals representing real-world phenomena such as sound, light, and temperature. Unlike digital circuits, which operate using discrete binary values (0s and 1s), analog circuits handle signals that vary smoothly over time, making them crucial for applications that require precise signal representation.
- Analog circuits can achieve high-speed processing with minimal latency. Since they process signals in their natural form without needing conversion to and from digital formats, they can respond to changes in input signals almost instantaneously. This characteristic is useful in applications like high-frequency communication systems and real-time data acquisition, where delay can significantly impact performance.
- Analog ICs can be more straightforward in design than digital circuits, especially for certain functions like amplification or filtering. This simplicity often translates to fewer components, leading to smaller circuit boards and reduced overall size of electronic devices. This compactness is a critical advantage in devices where space is at a premium, such as mobile phones and wearable technology.
- Advancements in semiconductor fabrication technologies are anticipated to have a profound impact on the analog IC market in South Korea. The transition to advanced process nodes, such as 7nm and below, will allow for better performance and lower power consumption. Techniques such as technology and silicon-on-insulator (SOI) substrates will enable the creation of analog circuits with superior characteristics, including higher speed and reduced leakage currents. These advancements are also likely to facilitate the development of mixed-signal ICs that incorporate analog and digital functionalities, further enhancing their versatility.
- Moreover, industrial automation is estimated to be a significant driver of the market studied. With the push toward Industry 4.0, manufacturers are increasingly adopting advanced automation solutions that rely on analog ICs for data acquisition and control systems.
- On the flip side, the high cost of research and development is a significant barrier to the growth of the market studied. Developing advanced ICs requires substantial investment in technology and skilled personnel, which can be prohibitive, particularly for smaller companies.
- High inflation can significantly impact the analog IC market by raising production costs. Higher prices for raw materials, components, and labor can lead to increased manufacturing expenses, which may be passed on to customers through higher product prices. This can dampen demand, particularly in price-sensitive segments.
- Inflation can strain consumer purchasing power, leading to reduced investment in advanced technologies. According to the International Monetary Fund (IMF), in 2023, the average inflation rate in South Korea amounted to about 3.59% compared to the previous year.
South Korea Analog Integrated Circuits Market Trends
The Power Management Segment is Anticipated to Drive the Demand for the Market Studied
- Power management analog integrated circuits (PMICs) are crucial in enhancing the efficiency and performance of 5G networks and data centers. In 5G, PMICs optimize power distribution to various components such as antennas, base stations, and user devices, ensuring they operate efficiently while minimizing energy consumption. They manage voltage regulation, battery charging, and thermal management, which are essential for maintaining the reliability and longevity of 5G infrastructure.
- In data centers, PMICs play a pivotal role in managing power supply to servers, storage units, and networking equipment. They enable dynamic voltage scaling, which adjusts power usage based on workload demands, thus improving overall energy efficiency. PMICs also facilitate power sequencing, ensuring that components receive the correct power at the right time during startup and operation, enhancing system stability.
- Moreover, both 5G and data centers benefit from PMICs that support advanced features like load monitoring, fault detection, and energy harvesting, contributing to sustainable operations. As the demand for higher data rates and increased processing power grows, the integration of sophisticated PMICs becomes vital for optimizing performance and reducing operational costs in these high-demand environments.
- South Korea boasts one of the most advanced telecommunications infrastructures globally, with widespread adoption of 5G technology. The deployment of 5G networks necessitates using high-performance analog ICs for signal processing, power management, and RF applications. The rising demand for high-speed data services and the proliferation of connected devices will continue to drive the need for analog ICs in telecommunications. The government's support for expanding telecommunications infrastructure further enhances market prospects.
- The South Korean government has implemented several initiatives to bolster the semiconductor and electronics industries. Programs aimed at fostering innovation, supporting startups, and investing in R&D contribute to the growth of the analog IC market. The government's focus on creating a facilitative environment for technological advancements encourages companies to invest in analog IC design and manufacturing capabilities.
- For instance, in 2024, the South Korean government announced plans to increase the budget for the semiconductor industry to KRW 1.3 trillion (equivalent to approximately USD 1 billion). It would focus on enhancing infrastructure, investment environments, ecosystems, and advanced semiconductor technologies. Moreover, SK Hynix is scheduled to invest USD 90 billion in building the world's largest mega fab complex in South Korea, with plans for completion by 2046.
- South Korea stands out on the global stage as a hub for communication technology. Bolstered by its advanced ICT infrastructure, which offers the world's fastest internet speeds, and a tech-savvy populace, the nation is home to industry giants like Samsung Electronics, SK Hynix, LG Electronics, and Naver. Committed to upholding its reputation as a global ICT leader, South Korea continues to channel substantial investments into pioneering technologies, including advanced semiconductors, next-gen networks, Artificial Intelligence, big data, quantum computing, and cybersecurity.
- The rollout of 5G technology is set to revolutionize telecommunications and data transmission. With lower latency and increased bandwidth, 5G enables faster data transfer rates, increasing the need for high-speed memory solutions. Applications like augmented reality (AR), virtual reality (VR), and real-time data analytics are anticipated to benefit from the enhanced capabilities offered by 5G, leading to a surge in demand for memory ICs that can support these technologies.
- The robust 5G ecosystem in South Korea is likely to drive the growth of the studied market significantly. For instance, according to the Ministry of Science and ICT (South Korea), as of March 2023, South Korea had approximately 29.6 million 5G subscribers, a significant increase from 22.91 million in March 2022. As of March 2024, South Korea had approximately 33.4 million 5G subscribers.
The Automotive Sector is Anticipated to Hold a Major Market Share
- Analog ICs are extensively used in automobile power management. These circuits regulate voltage and current to various vehicle components. For example, voltage regulators ensure that sensitive electronic systems receive a stable voltage, preventing damage from fluctuations. Battery management systems (BMS) in EVs utilize analog ICs to monitor battery health, charge levels, and temperature, ensuring optimal performance and safety.
- Analog ICs are essential for interfacing with various sensors used throughout vehicles. These sensors gather data on temperature, pressure, speed, and more. The analog ICs convert the sensor outputs, typically analog signals, into digital signals that the vehicle’s microcontroller or processor can process. For instance, in tire pressure monitoring systems (TPMS), analog circuits process signals from pressure sensors to provide real-time data to the driver, improving safety.
- These ICs are also widely used in automotive audio systems. They are involved in signal amplification, processing, and conversion, enabling high-quality sound reproduction in vehicles. Audio amplifiers, equalizers, and digital-to-analog converters (DACs) are all critical components that rely on analog ICs to deliver an immersive auditory experience for passengers.
- In both conventional and electric vehicles, analog ICs are pivotal in motor control applications. They help manage the operation of electric motors for various functionalities, such as power steering, window lifts, and seat adjustments. Analog controllers ensure precise control over motor speed and torque, improving overall vehicle performance and energy efficiency.
- The increasing automotive manufacturing is likely to aid the growth of the market studied. For instance, according to the Korea Automobile Manufacturers Association (KAMA), in 2023, approximately 4.24 million units of vehicles were manufactured in South Korea. This was an increase from nearly 3.76 million units in the previous year and the highest figure recorded since 2015.
South Korea Analog Integrated Circuits Industry Overview
The South Korean analog integrated circuits market is a fragmented market with the presence of several major players like Analog Devices Inc., Infineon Technologies AG, Microchip Technology Inc., NXP Semiconductors NV, Texas Instruments Inc., etc. The market players are striving to innovate new products through extensive investments in R&D, collaborations, and mergers to cater to the evolving demands of consumers.
•October 2023: Skyworks Solutions Inc. introduced its Si469xx family of automotive digital radio coprocessors for future in-vehicle infotainment (IVI) systems. With its integration, flexibility, and low cost, the Si469xx family of coprocessors is claimed to be optimized to operate with Skyworks' Si479xx Hybrid Software Defined Radio (SDR) Tuners to achieve a cost-effective digital radio receiver. The Si469xx product family supports advanced capabilities such as Maximal Ratio Combining (MRC) and seamless linking of digital radio, analog radio, and Internet Protocol content.
•September 2023: In response to the swift ascent of Artificial Intelligence computing at the network's edge and its related inferencing algorithms, Intelligent Hardware Korea unveiled its initiative to craft a neuromorphic computing platform tailored for neurotechnology devices and field-programmable neuromorphic devices. Microchip Technology, through its subsidiary Silicon Storage Technology, plays an important role in this endeavor by supplying an evaluation system for the SuperFlash memBrain neuromorphic memory solution. This innovative solution leverages Microchip's established nonvolatile memory (NVM) technology, known as SuperFlash. It is optimized to perform vector-matrix multiplication (VMM) for neural networks through an analog in-memory computing approach.
South Korea Analog Integrated Circuits Market Leaders
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Analog Devices Inc.
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Infineon Technologies AG
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STMicroelectronics N.V.
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Texas Instruments Inc.
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NXP Semiconductors N.V.
*Disclaimer: Major Players sorted in no particular order
South Korea Analog Integrated Circuits Market News
- April 2024: STMicroelectronics announced a new process technology to design and build transistors for next-generation embedded processing devices. The advanced technology was based on an 18nm fully depleted silicon on insulator (FD-SOI) process with embedded phase change memory. This is claimed to have reduced the feature size to 18nm from 20nm. PCMtechnology uses changes in the material phase to store data. It also supports 3V operation for analog features and delivers the reliability required for demanding industrial applications like high-temperature operation, radiation hardening, and data retention capabilities.
- January 2024: Damon Motors Inc. announced a collaboration with NXP Semiconductors, a prominent company in automotive processing and a renowned provider of vehicle electrical/electronic (E/E) architecture and electrification solutions. Through this collaboration, NXP's advanced technology has been integrated into Damon's electronic control units (ECU) and other electronic systems.
South Korea Analog Integrated Circuits Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Penetration of Smartphones, Feature Phones, and Tablets
5.1.2 Increasing Adoption of Industrial Automation
5.1.3 The Growing Emphasis on Energy Efficiency Across Various Sectors
5.2 Market Restraint
5.2.1 Increasing Design Complexity of Analog IC
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 General-purpose IC
6.1.1.1 Interface
6.1.1.2 Power Management
6.1.1.3 Signal Conversion
6.1.1.4 Amplifiers/Comparators (Signal Conditioning)
6.1.2 Application-specific IC
6.1.2.1 Consumer
6.1.2.1.1 Audio/Video
6.1.2.1.2 Digital Still Camera and Camcorder
6.1.2.1.3 Other Consumers
6.1.2.2 Automotive
6.1.2.2.1 Infotainment
6.1.2.2.2 Other Infotainment
6.1.2.3 Communication
6.1.2.3.1 Cell Phone
6.1.2.3.2 Infrastructure
6.1.2.3.3 Wired Communication
6.1.2.3.4 Short Range
6.1.2.3.5 Other Wireless
6.1.2.4 Computer
6.1.2.4.1 Computer System and Display
6.1.2.4.2 Computer Periphery
6.1.2.4.3 Storage
6.1.2.4.4 Other Computers
6.1.2.5 Industrial and Others
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Analog Devices Inc.
7.1.2 Infineon Technologies AG
7.1.3 Microchip Technology Inc
7.1.4 NXP Semiconductors NV
7.1.5 On Semiconductor Corporation
7.1.6 Richtek Technology Corporation (MediaTek Inc.)
7.1.7 Skyworks Solutions Inc.
7.1.8 STMicroelectronics NV
7.1.9 Texas Instruments Inc.
7.1.10 Renesas Electronics Corporation
7.1.11 Qorvo Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
South Korea Analog Integrated Circuits Industry Segmentation
Analog integrated circuits (ICs) are essential components in many electronic devices. They are designed to process continuous signals representing real-world phenomena such as sound, light, and temperature.
For market estimation, the revenue generated from sales of various types of analog integrated circuits used in various industries, such as consumer, automotive, communication, computer, industrial, etc., is tracked. Market trends are evaluated by analyzing investments made in product innovation, diversification, and expansion. Enhancements in 5G, IoT, AI, energy efficiency, artificial intelligence, autonomous systems, electric vehicles, and biomedical devices are also crucial in determining the growth of the market studied.
The South Korean analog integrated circuits market is segmented by type (general-purpose IC [interface, power management, signal conversion, and amplifiers/comparators], application-specific IC (consumer [audio/video, digital still camera & camcorder, and other consumers], automotive [infotainment and other infotainment], communication [cell phone, infrastructure, wired communication, short range, and other wireless], computer [computer system & display, computer periphery, storage, and other computers], and industrial and others]). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
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South Korea Analog Integrated Circuits Market Research FAQs
How big is the South Korea Analog Integrated Circuits Market?
The South Korea Analog Integrated Circuits Market size is expected to reach USD 2.77 billion in 2024 and grow at a CAGR of 5.27% to reach USD 3.58 billion by 2029.
What is the current South Korea Analog Integrated Circuits Market size?
In 2024, the South Korea Analog Integrated Circuits Market size is expected to reach USD 2.77 billion.
Who are the key players in South Korea Analog Integrated Circuits Market?
Analog Devices Inc., Infineon Technologies AG, STMicroelectronics N.V., Texas Instruments Inc. and NXP Semiconductors N.V. are the major companies operating in the South Korea Analog Integrated Circuits Market.
What years does this South Korea Analog Integrated Circuits Market cover, and what was the market size in 2023?
In 2023, the South Korea Analog Integrated Circuits Market size was estimated at USD 2.62 billion. The report covers the South Korea Analog Integrated Circuits Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South Korea Analog Integrated Circuits Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South Korea Analog Integrated Circuits Industry Report
Statistics for the 2024 South Korea Analog Integrated Circuits market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Korea Analog Integrated Circuits analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
