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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
By Material Type
By End-User Industry
Southeast Asia Semiconductor Market