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World - Electronic Integrated Circuits and Microassemblies - Market Analysis, Forecast, Size, Trends and Insights
Report Update: Nov 1, 2024

World - Electronic Integrated Circuits and Microassemblies - Market Analysis, Forecast, Size, Trends and Insights

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Jul 23, 2021

Global Chip Shortage Set to Persist as Planned Supply Expansions Slow to Catch Up to Rising Demand

IndexBox has just published a new report: 'World - Electronic Integrated Circuits and Microassemblies - Market Analysis, Forecast, Size, Trends and Insights'. Here is a summary of the report's key findings.

Global demand for semiconductor chips continues to outpace supply, mainly driven by increasing procurement from both the consumer electronics and automobile sectors in 2021, catching major semiconductor foundries TSMC and Samsung off-guard. In response, many major Asian chip manufacturers have hiked their prices by up to 20% this year. While both TSMC and Samsung have pledged to increase production capacity, market players project the chip shortfall to persist until 2022/2023.

Key Trends and Insights

While covid lockdowns in 2020 had led to increased demand for consumer electronics such as smartphones, personal computers and server equipment, the resulting increase in demand for semiconductor chips from this sector was offset by a fall in purchases from the automobile sector. When automobile sales rebounded as lockdowns eased in early 2021, this led to a severe shortfall in chip supply, despite semiconductor fabs already operating at close to maximum utilization rates.

In the short-term, semiconductor shortages for the automobile industry are set to ease later this year, as the world's largest chipmaker TSMC ramps up the output of automobile chips in recent months. Automobile chip production is set to increase by 60% compared to last year's volume.

More broadly, however, TSMC Chief Executive Dr C.C. Wei has stated that overall chip supply shortages in the industry could last until 2022. This sentiment is echoed by UMC executive Chien Shan-chieh, who has predicted overall chip shortages to worsen in the shortterm and persist until 2023. These shortfalls have led Asian chip manufacturers to hike their prices by an average of 20% this year, with TSMC in particular suspending discounts that the company offers to bulk clients. These elevated prices are likely to remain until chip supply can fully catch up with demand.

Part of the issue stems from the complex and time-consuming semiconductor chip manufacturing process. Semiconductor fabs are already operating at full capacity, and even under ideal conditions, it can take 12 to 26 weeks to complete one batch of chip manufacture. While TSMC has committed to investing $100B into expanding chip manufacturing and R&D across the next three years in response to rising demand, the effects of this expansion would likely only manifest from 2022 onwards. Samsung has also announced plans to invest $141B into its semiconductor business over the next 10 years, including a new Korean production facility set to come online in late 2022.

These recent shortages have also highlighted the geographical vulnerability of the semiconductor supply chain: the majority of chip production is concentrated in Taiwanese facilities under the control of TSMC, which account for 56% of the world's chip production. Major economies such as the U.S. have made recent efforts to lure major chip manufacturers into setting up production facilities domestically. Construction started in June this year of a $12B TSMC chip plant in Arizona, while Samsung is potentially looking to sink $17B into a new Texas manufacturing facility. TSMC has additional plans to expand manufacturing to Germany and Japan in the future. The June U.S. Innovation and Competition Act has also set aside $52B for domestic semiconductor research and manufacturing projects in attempts to develop the U.S.' own semiconductor manufacturing capacity.

Global Exports of Electronic Chips

In 2020, shipments abroad of electronic chips increased by 7% to 1,180B units, rising for the eighth consecutive year after two years of decline. In value terms, electronic chip exports stood at $888.4B (IndexBox estimates) in 2020.

In value terms, Taiwan (Chinese) ($218.8B), Hong Kong SAR ($150.1B) and China ($116.6B) appeared to be the countries with the highest levels of exports in 2020, together accounting for 55% of global exports.

Hong Kong SAR (243B units), China (242B units) and Taiwan (Chinese) (198B units) represented roughly 58% of total exports of electronic chips in 2020. Singapore (127B units) occupied the next position in the ranking, followed by Malaysia (119B units), Japan (72B units) and the Philippines (69B units). All these countries together held approx 33% share of total exports.

From 2007 to 2020, the most notable growth rate in terms of shipments amongst the main exporting countries was attained by China, while exports for the other global leaders experienced more modest paces of growth.

The average electronic chip export price stood at $0.8 per unit in 2020, growing by 7.4% against the previous year. From 2007 to 2020, the most notable rate of growth in terms of prices was attained by Malaysia, while the other global leaders experienced a decline in the export price figures.

Source: IndexBox Market Intelligence Platform

This report provides an in-depth analysis of the global electronic chip market. Within it, you will discover the latest data on market trends and opportunities by country, consumption, production and price developments, as well as the global trade (imports and exports). The forecast exhibits the market prospects through 2030.

Product coverage:

  • Prodcom 26113003 - Multichip integrated circuits: processors and controllers, w hether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits
  • Prodcom 26113006 - Electronic integrated circuits (excluding multichip circuits): processors and controllers, whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits
  • Prodcom 26113023 - Multichip integrated circuits: memories
  • Prodcom 26113027 - Electronic integrated circuits (excluding multichip circuits): dynamic random-access memories (D-RAMs)
  • Prodcom 26113034 - Electronic integrated circuits (excluding multichip circuits): static random-access memories (S-RAMs), including cache random-access memories (cache-RAMs)
  • Prodcom 26113054 - Electronic integrated circuits (excluding multichip circuits): UV erasable, programmable, read only memories (EPROMs)
  • Prodcom 26113065 - Electronic integrated circuits (excluding multichip circuits): electrically erasable, programmable, read only memories (E.PROMs), including flash E.PROMs
  • Prodcom 26113067 - Electronic integrated circuits (excluding multichip circuits): other memories
  • Prodcom 26113080 - Electronic integrated circuits: amplifiers
  • Prodcom 26113091 - Other multichip integrated circuits n.e.c.
  • Prodcom 26113094 - Other electronic integrated circuits n.e.c.

Country coverage:

Worldwide - the report contains statistical data for 200 countries and includes detailed profiles of the 50 largest consuming countries:

+ the largest producing countries

Data coverage:

  • Global market volume and value
  • Per Capita consumption
  • Forecast of the market dynamics in the medium term
  • Global production, split by region and country
  • Global trade (exports and imports)
  • Export and import prices
  • Market trends, drivers and restraints
  • Key market players and their profiles

Company coverage:

Samsung Electronics, Intel, TSMC, SK Hynix, Micron, Qualcomm, Broadcom, Kioxia, Texas Instruments, Analog Devices, Microchip, NXP, MediaTek, Infineon, Bosch, STMicroelectronics, Sony, ARM, AMD, Nvidia, Renesas, GlobalFoundries, ON Semiconductor, UMC, Apple, IBM, Mitsubishi Electric, Imagination Technologies, Graphcore, Tower Semiconductor, Xilinx, SMIC

Reasons to buy this report:

  • Take advantage of the latest data
  • Find deeper insights into current market developments
  • Discover vital success factors affecting the market

This report is designed for manufacturers, distributors, importers, and wholesalers, as well as for investors, consultants and advisors.

In this report, you can find information that helps you to make informed decisions on the following issues:

  1. How to diversify your business and benefit from new market opportunities
  2. How to load your idle production capacity
  3. How to boost your sales on overseas markets
  4. How to increase your profit margins
  5. How to make your supply chain more sustainable
  6. How to reduce your production and supply chain costs
  7. How to outsource production to other countries
  8. How to prepare your business for global expansion

While doing this research, we combine the accumulated expertise of our analysts and the capabilities of artificial intelligence. The AI-based platform, developed by our data scientists, constitutes the key working tool for business analysts, empowering them to discover deep insights and ideas from the marketing data.

  1. 1. INTRODUCTION

    Making Data-Driven Decisions to Grow Your Business

    1. REPORT DESCRIPTION
    2. RESEARCH METHODOLOGY AND AI PLATFORM
    3. DATA-DRIVEN DECISIONS FOR YOUR BUSINESS
    4. GLOSSARY AND SPECIFIC TERMS

  2. 2. EXECUTIVE SUMMARY

    A Quick Overview of Market Performance

    1. KEY FINDINGS
    2. MARKET TRENDS This Chapter is Available Only for the Professional Edition PRO

  3. 3. MARKET OVERVIEW

    Understanding the Current State of The Market and Its Prospects

    1. MARKET SIZE
    2. CONSUMPTION BY COUNTRY
    3. MARKET FORECAST TO 2030

  4. 4. MOST PROMISING PRODUCT

    Finding New Products to Diversify Your Business

    This Chapter is Available Only for the Professional Edition PRO
    1. TOP PRODUCTS TO DIVERSIFY YOUR BUSINESS
    2. BEST-SELLING PRODUCTS
    3. MOST CONSUMED PRODUCT
    4. MOST TRADED PRODUCT
    5. MOST PROFITABLE PRODUCT FOR EXPORT

  5. 5. MOST PROMISING SUPPLYING COUNTRIES

    Choosing the Best Countries to Establish Your Sustainable Supply Chain

    This Chapter is Available Only for the Professional Edition PRO
    1. TOP COUNTRIES TO SOURCE YOUR PRODUCT
    2. TOP PRODUCING COUNTRIES
    3. TOP EXPORTING COUNTRIES
    4. LOW-COST EXPORTING COUNTRIES

  6. 6. MOST PROMISING OVERSEAS MARKETS

    Choosing the Best Countries to Boost Your Exports

    This Chapter is Available Only for the Professional Edition PRO
    1. TOP OVERSEAS MARKETS FOR EXPORTING YOUR PRODUCT
    2. TOP CONSUMING MARKETS
    3. UNSATURATED MARKETS
    4. TOP IMPORTING MARKETS
    5. MOST PROFITABLE MARKETS

  7. 7. GLOBAL PRODUCTION

    The Latest Trends and Insights into The Industry

    1. PRODUCTION VOLUME AND VALUE
    2. PRODUCTION BY COUNTRY

  8. 8. GLOBAL IMPORTS

    The Largest Importers on The Market and How They Succeed

    1. IMPORTS FROM 2012–2023
    2. IMPORTS BY COUNTRY
    3. IMPORT PRICES BY COUNTRY

  9. 9. GLOBAL EXPORTS

    The Largest Exporters on The Market and How They Succeed

    1. EXPORTS FROM 2012–2023
    2. EXPORTS BY COUNTRY
    3. EXPORT PRICES BY COUNTRY

  10. 10. PROFILES OF MAJOR PRODUCERS

    The Largest Producers on The Market and Their Profiles

    This Chapter is Available Only for the Professional Edition PRO

  11. 11. COUNTRY PROFILES

    The Largest Markets And Their Profiles

    This Chapter is Available Only for the Professional Edition PRO
    • United States
    • China
    • Japan
    • Germany
    • United Kingdom
    • France
    • Brazil
    • Italy
    • Russian Federation
    • India
    • Canada
    • Australia
    • Republic of Korea
    • Spain
    • Mexico
    • Indonesia
    • Netherlands
    • Turkey
    • Saudi Arabia
    • Switzerland
    • Sweden
    • Nigeria
    • Poland
    • Belgium
    • Argentina
    • Norway
    • Austria
    • Thailand
    • United Arab Emirates
    • Colombia
    • Denmark
    • South Africa
    • Malaysia
    • Israel
    • Singapore
    • Egypt
    • Philippines
    • Finland
    • Chile
    • Ireland
    • Pakistan
    • Greece
    • Portugal
    • Kazakhstan
    • Algeria
    • Czech Republic
    • Qatar
    • Peru
    • Romania
    • Vietnam

  12. LIST OF TABLES

    1. Key Findings In 2023
    2. Market Volume, In Physical Terms, 2012–2023
    3. Market Value, 2012–2023
    4. Per Capita Consumption, By Country, 2018–2023
    5. Production, In Physical Terms, By Country, 2012–2023
    6. Imports, In Physical Terms, By Country, 2012–2023
    7. Imports, In Value Terms, By Country, 2012–2023
    8. Import Prices, By Country Of Destination, 2012–2023
    9. Exports, In Physical Terms, By Country, 2012–2023
    10. Exports, In Value Terms, By Country, 2012–2023
    11. Export Prices, By Country Of Origin, 2012–2023

  13. LIST OF FIGURES

    1. Market Volume, In Physical Terms, 2012–2023
    2. Market Value, 2012–2023
    3. Consumption, By Country, 2023
    4. Market Volume Forecast to 2030
    5. Market Value Forecast to 2030
    6. Products: Market Size And Growth, By Type
    7. Products: Average Per Capita Consumption, By Type
    8. Products: Exports And Growth, By Type
    9. Products: Export Prices And Growth, By Type
    10. Production Volume And Growth
    11. Exports And Growth
    12. Export Prices And Growth
    13. Market Size And Growth
    14. Per Capita Consumption
    15. Imports And Growth
    16. Import Prices
    17. Production, In Physical Terms, 2012–2023
    18. Production, In Value Terms, 2012–2023
    19. Production, By Country, 2023
    20. Production, In Physical Terms, By Country, 2012–2023
    21. Imports, In Physical Terms, 2012–2023
    22. Imports, In Value Terms, 2012–2023
    23. Imports, In Physical Terms, By Country, 2023
    24. Imports, In Physical Terms, By Country, 2012–2023
    25. Imports, In Value Terms, By Country, 2012–2023
    26. Import Prices, By Country, 2012–2023
    27. Exports, In Physical Terms, 2012–2023
    28. Exports, In Value Terms, 2012–2023
    29. Exports, In Physical Terms, By Country, 2023
    30. Exports, In Physical Terms, By Country, 2012–2023
    31. Exports, In Value Terms, By Country, 2012–2023
    32. Export Prices, 2012–2023

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