Semiconductor Industry Report by Regional Category Spend, Price Analysis, Key Demand, and Price Indicators, and Best Buying Practices

The global Semiconductor market reached a value of about USD 433 billion in 2021. The industry is projected to grow at a CAGR of around 11.7% in the forecast period of 2022-2027 to reach a value of about USD 943 billion by 2027.

The global Semiconductor industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The extensive application of the chip in various electronics is primarily driving the market growth. The Asia Pacific is the highest category spender by region that is driving the demand for the semiconductor industry.

Industry Definition and Segmentation

The electrical conductivity of a semiconductor material is between a conductor, such as metallic copper, and an insulator, like glass. Semiconductors are used to produce diodes, transistors, and integrated circuits, among other electronic devices. Such gadgets have found extensive usage owing to their compactness, consistency, power proficiency, and low cost. The Semiconductor industry report comprises segments by component type (ICs, Optoelectronics, Discrete Semiconductors, Sensors), by end-use (Automotive, Industrial, Data Centre, Telecommunication, Consumer Electronics, Aerospace and Defence, Healthcare), and region (North America, Europe, Asia Pacific, the Middle East, and Africa, and South America).

The Asia Pacific Region is Driving the Growth of the Industry

The Asia Pacific is the largest market in the industry. The region's semiconductor industrial environment is growing due to smartphones being a significant market and seeing increased investments in renewable energy, automotive (EVs in particular), and other sectors. Furthermore, China holds a considerable share owing to increased electronic equipment output across the region. Also, Korea's primary export is semiconductors.

The market is being driven by the wide range of electronics that employ the chip. It finds application in the cutting-edge modern devices, including smartphones, tablets, flat-screen displays, television sets, high-tech cars, new planes, and various medical devices. The growing popularity of laptops, earbuds, wearables, smartphones, and other devices is fueling the industry's expansion. Furthermore, the rapid advancement of consumer electronics technology and size is driving the demand for sophisticated semiconductor technologies.

However, the continuously changing functionality of semiconductor chips and the specific demands of end-users from various industries, such as power efficiency, unrealistic timetables, and cost-cutting considerations, are factors hampering the market growth.

Best Procurement Practices

The global Semiconductor industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global Semiconductor regions, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

The most extensively used semiconductor material is silicon. Protons are positively charged, while electrons are negatively charged. Neutrons have no charge. Semiconductors work because electrons with a negative charge are in an unbalanced state. Positive (where there are extra protons) and negative (where there are excess electrons) charges are generated at two ends of the semiconductor material's surface due to this electron imbalance. This is how a semiconductor functions.

Technological Breakthroughs in the Product, Further Driving the Procurement of Semiconductor

The technological advances in the product are propelling the industry. Automakers are moving forward with self-driving cars, advanced driver assistance systems (ADAS), and graphics processing units (GPUs), driving the industry. In addition, the integration of the Internet of Things (IoT) in the product is further boosting the demand. Furthermore, With the introduction of 5G technology, the number of 5G-enabled devices has increased, allowing for the deployment of various foundry nodes. In addition, the introduction of 5G will considerably improve wireless data connection bandwidth, latency, and device density. Also, the rising integration of advanced systems such as collision warning systems, smart cameras, and autonomous brake systems would enhance demand for semiconductor ICs, assisting the semiconductor market's growth.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Semiconductor Industry Report

• Intel
• Samsung
• Texas Instruments
• TSMC
• SK Hynix
• Infineon

Market Landscape

The Semiconductor Industry Landscape is fiercely competitive, with a slew of participants. Some of the biggest competitors now lead the market in terms of market share. New firms are boosting their market presence, consequently expanding their commercial footprint throughout emerging nations, thanks to advancements in the chip manufacturing process for providing enhanced applications. Players in the Semiconductors Market use technology launches, acquisitions, and R&D efforts as effective strategies.

Key Initiatives by Companies

• Samsung Electronics Co. Ltd introduced the Exynos 2200, a new premium mobile processor, in January 2022. The Samsung Xclipse graphics processing unit is based on the AMD RDNA 2 architecture, and the Exynos 2200 is a newly built mobile processor (GPU).
• Intel announced plans to invest USD 20 billion in developing two new cutting-edge chip facilities in Ohio in January 2022. The investment will support enhancing the manufacturing to meet the rising demand for advanced semiconductors, powering a new generation of innovative products from Intel, and servicing the needs of foundry customers, as a part of Intel's IDM 2.0 strategy.