Southeast Asia Semiconductor Market Overview:
The semiconductor refers to the material whose conductivity is between conductor and insulator at normal temperature. Semiconductors are used in integrated circuits, consumer electronics, communication systems, photovoltaic power generation, lighting applications, high-power power conversion, and other fields. Common semiconductor materials are silicon, germanium, gallium arsenide, etc., and silicon is the most influential one among various semiconductor materials in commercial applications. Matters exist in many forms, solids, liquids, gases, plasmas, etc. We usually call materials with poor conductivity, such as coal, artificial crystal, amber, ceramics, etc., as insulators. And metals with better conductivity such as gold, silver, copper, iron, tin, aluminum, etc. are called conductors. The material between the conductor and the insulator can be called a semiconductor.
Southeast Asia Semiconductor Market Insights
The Southeast Asia
semiconductor market projected to grow with a noteworthy rate during the forecast period, 2020-2027. The growth of the market can be attributed to the surge in demand for the semiconductor in cloud computing, internet-connected devices (IoT), and artificial intelligence. Furthermore, the upsurge in demand for semiconductors in the automotive industry for the inclusion of components such as ICs, which are essential in controlling the operations of the integrated electronic components are factors estimated to drive the growth of the Southeast Asia semiconductor market size. Additionally, emerging technology such as AI in products and 5G networks, and the rapid increase in automotive and consumer electronics are estimated to propel the growth of the market in the coming years. The semiconductor industry has become the most active area for Southeast Asia innovation. The arrival of a new round of silicon content improvement cycles driven by 5G, automotive electronics,
Internet of Things, AI high-performance computing, data centers, industrial robots, smart wearables, etc., brings new opportunities to the Southeast Asia semiconductor industry.
Moreover, the growing demand for AI-based applications in Southeast Asia across various industries and evolving semiconductor industry trends will create new growth opportunities for Southeast Asia semiconductor manufacturers and suppliers. Furthermore, the consumption of automotive electronic components for safety, infotainment, navigation, and fuel efficiency will increase the demand for electronic components applied in advanced safety features added to vehicles. These will drive demand for ICs, MCUs, and sensors, which leads to the robust growth of Southeast Asia semiconductor market share in the analysis period.
Growth Driver
Increase in demand for semiconductor in the automotive industry
Networking, intelligence, and electrification are the main driving forces for the development of automotive semiconductors in the future, and automotive electronics has, therefore, become a rapidly growing market for semiconductor downstream applications. In terms of specific application fields, automotive electronic semiconductors are still concentrated in power systems, infotainment systems, chassis, safety, and bodywork.
Growing usages of semiconductor in communication and IT hardware industry
The smartphones, PCs, automotive electronics, IoT (
Internet of Things, Internet of Things), and servers are leading industry demanding for semiconductor applications. The rapid development of 5G, artificial intelligence, Internet of Things, and automotive electronics will increase the contribution to the world integrated circuit market, while consumer electronics (excluding wearables), feature phones, desktop computers, and notebooks will contribute to the market.
Artificial intelligence and IoT has become a new opportunity for the semiconductor industry
AI chips are overturning the four significant fields led by security, mobile phones, driverless cars, cloud computing, etc. at an unprecedented speed, and become new opportunities for the semiconductor industry. AI chips are mainly divided into GPU, FPGA (Field-programmable Gate Array), ASIC, which can be used for end-side reasoning, cloud Test reasoning, cloud test training, and IP core.
The IoT module is mainly divided into three functional parts: sensing, processing, and connection. It is realized by integrating or packaging related semiconductor components such as related sensors, MCU chips, memory, power IC, and radiofrequency devices on the PCB board.
Material type Segmental Analysis
Based on material type, the Southeast Asia
semiconductor market segregated into silicon, germanium, gallium arsenide, silicon carbide, gallium nitride, gallium phosphide, and others. The silicon segment captured the largest semiconductor market share in the Southeast Asia semiconductor market in 2019. It is owing to their highly conductive properties to maximize their performance, which is used in devices such as transistors, printed circuit boards, and integrated circuits.
The silicon carbide will grow with a significant CAGR during the forecast period on account of their properties such as 10x the breakdown electric field strength, and 3x the bandgap, used for power devices.
Components Segmental Analysis
Based on the components, the Southeast Asia Semiconductor market classified into analog IC, sensors, memory devices, lighting devices, discrete power devices, and others. The sensors held the largest market share in 2019, and it is projected to grow substantially over the forecast period. It is primarily attributed to the vast demand for the sensor in automotive due to shift to autonomous driving, enable autonomous capabilities, and help as security and control purposes.
Discrete power devices will grow with a lucrative rate during the forecast period due to the power devices used to regulate voltages, help lower power consumption, and reduce heat generation.
Process Segmental Analysis
By process, the Southeast Asia Semiconductor market segmented into water production, wafer fabrication, doping, masking, etching, and thermal oxidation. The wafer fabrication segment witnessed the highest market share in 2019. It is attributable to the wafer process used to create the integrated circuits that are present in everyday electrical and electronic devices.
The etching segment will grow at a significant rate during the forecast period. It is used to remove material and create a specific pattern. The material that is removed can be done by either dry or wet etching.
End-User Industry Segmental Analysis
Based on the end-user industry, the Southeast Asia semiconductor market categorized into networking & communication, energy, automotive, computing, consumer electronics, sports & fitness, mobile accessories, gaming, healthcare, and others. The automotive segment estimated to hold the largest market share in 2019 due to the increasing usages of semiconductor in
ADAS safety systems that can reduce the number of traffic accidents, demand in traditional vehicles and EVs/hybrid electric vehicles (HEVs), and advanced vehicle connectivity (V2I, V2V, in-vehicle).
The networking & communication segment will grow with a significant rate during the forecast period owing to the surge in demand for semiconductors in 5G, automotive electronics, high-performance computing, data centers, industrial robots, smart wearables.
Country Segmental Analysis
Based on the country, the Southeast Asia semiconductor market segmented into Indonesia, Malaysia, Philippines, Thailand, Vietnam, Singapore, Myanmar, and the Rest of Southeast Asia. Singapore is likely to generate maximum revenue by the end of 2027 in the semiconductor market. It is owing to the rapid increases in the popularity of AI-based devices, the surge in penetration of the internet drove volume for
ethernet equipment, network processors, and ASICs. Additionally, the increased demand for mobile processors and the adoption of cloud computing has pushed growth for server CPUs and storage.
Indonesia will grow with a lucrative rate during the forecast period. It is due to the surge in demand for automotive, mobility (rail, air), and engineering and facilitates new applications like AI in various industries.
Competitor Analysis
Companies such as Qualcomm, Samsung Electronics, Toshiba Corporation, Micron Technology, Intel Corporation, Texas Instruments, NXP, MediaTek, Western Digital, STMicroelectronics, Infineon, Sony, Analog Devices and SK Hynix Inc. are the key players in the Southeast Asia Semiconductor Market.
Key Stakeholders
- Market research and consulting firms
- Industry associations
- Southeast Asia Semiconductor manufacturing firm
- Research organizations and consulting companies
- Organizations, associations, and alliances related to Southeast Asia semiconductor
- Regulatory bodies
- Suppliers
- Retailers
Recent Developments
- In August 2021, Samsung Electronics launched the Exynos W920, which integrates an LTE modem to offer robust and efficient performance demanded by next-generation wearable devices.
- In August 2021, Google unveils plans to build its semiconductor chips to power its Chromebooks, Nikkei Asia, by 2023
- In June 2021, Samsung Group announced that it would invest USD 206 billion in the next three years to expand its mark in biopharmaceuticals, artificial intelligence, semiconductors, and robotics in the post-pandemic era.
- In June 2021, the third-largest contract chipmaker globally, U.S.-based semiconductor manufacturer GlobalFoundries invests USD 4 billion to set up a new production site in Singapore.
The objective of the Research
- Market modeling starts with identifying a target market where historical data exists. A Market can include prediction problems, economic factors, analyzing customer behavior, and identifying new patterns from past events, which helps our client to have deep dive into the market.
- Product analysis involves steps such as examining product features, costs, availability, quality, and other aspects. Product analysis is conducted to understand potential buyers and measure competition in the market.
- Market Trend and Economic Factors Analysis helps in assessing potential changes to an economy’s inflation rate, taxes, interest rates, exchange rates, trading regulations, and excise duties that can or have a major effect on the target market.
- Market Segmental Analysis defines in-depth scenario of the target market by the process of grouping consumers into naturally existing created segments of consumers who share similar product preferences or characteristics
- The geographical mapping approach helps our clients to understand national or international markets because different consumers in different regions have different needs wants, and cultural characteristics that can be specifically targeted.
Market Modelling
By Material Type
- Silicon
- Germanium
- Gallium Arsenide
- Silicon Carbide
- Gallium Nitride
- Gallium Phosphide
- Others
By Components
- Analog IC
- Sensors
- Memory Devices
- Lighting Device
- Discrete Power Devices
- Others
By Process
- Water Production
- Wafer Fabrication
- Doping, Masking
- Etching
- Thermal Oxidation
By End-User Industry
- Networking & Communication
- Energy
- Automotive
- Computing
- Consumer Electronic
- Sports & Fitness
- Mobile Accessories
- Gaming
- Healthcare
- Others
By Country
- Indonesia
- Malaysia
- Philippines
- Thailand
- Vietnam
- Singapore
- Myanmar
- Rest of Southeast Asia
More Related Reports:
Automotive Usage-Based Insurance Market
Global Alarm Monitoring Market
Connected Drug Delivery Devices Market
Global Food Enzymes Market
Estrogen Replacement Therapy Market
Medical Foam Market
Loyalty Management Market
Global Anti-Fatigue Mats Market
Mechanical Ventilators Market