Middle East: Electronic Chip Market 2025

Electronic Chip Market Size in the Middle East

The Middle Eastern electronic chip market declined to $X in 2021, shrinking by -9% against the previous year. The total consumption indicated measured growth from 2012 to 2021: its value increased at an average annual rate of +3.9% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, consumption increased by +7.1% against 2019 indices. Over the period under review, the market reached the peak level at $X in 2020, and then shrank in the following year.

Electronic Chip Production in the Middle East

In value terms, electronic chip production contracted rapidly to $X in 2021 estimated in export price. The total production indicated a resilient increase from 2012 to 2021: its value increased at an average annual rate of +8.2% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, production increased by +22.1% against 2019 indices. The most prominent rate of growth was recorded in 2013 with an increase of 72%. Over the period under review, production reached the peak level at $X in 2020, and then contracted notably in the following year.

Electronic Chip Exports

Exports in the Middle East

In 2021, shipments abroad of electronic chips increased by 38% to X units, rising for the second year in a row after four years of decline. In general, exports, however, showed a deep contraction. The volume of export peaked at X units in 2015; however, from 2016 to 2021, the exports remained at a lower figure.

In value terms, electronic chip exports soared to $X in 2021. Over the period under review, exports saw tangible growth. The pace of growth appeared the most rapid in 2013 when exports increased by 43% against the previous year. Over the period under review, the exports hit record highs at $X in 2015; however, from 2016 to 2021, the exports failed to regain momentum.

Exports by Country

In 2021, Israel (X units) represented the major exporter of electronic chips, achieving 65% of total exports. It was distantly followed by Turkey (X units) and the United Arab Emirates (X units), together committing a 33% share of total exports.

Exports from Israel decreased at an average annual rate of -4.6% from 2012 to 2021. At the same time, the United Arab Emirates (+9.3%) displayed positive paces of growth. Moreover, the United Arab Emirates emerged as the fastest-growing exporter exported in the Middle East, with a CAGR of +9.3% from 2012-2021. By contrast, Turkey (-14.4%) illustrated a downward trend over the same period. From 2012 to 2021, the share of Israel and the United Arab Emirates increased by +13 and +9.4 percentage points, respectively.

In value terms, Israel ($X) remains the largest electronic chip supplier in the Middle East, comprising 95% of total exports. The second position in the ranking was held by the United Arab Emirates ($X), with a 4% share of total exports.

In Israel, electronic chip exports expanded at an average annual rate of +2.8% over the period from 2012-2021. The remaining exporting countries recorded the following average annual rates of exports growth: the United Arab Emirates (+2.9% per year) and Turkey (+10.9% per year).

Export Prices by Country

In 2021, the export price in the Middle East amounted to $X per unit, dropping by -5.1% against the previous year. Over the period under review, the export price, however, saw a strong increase. The pace of growth was the most pronounced in 2013 an increase of 35% against the previous year. The level of export peaked at $X per unit in 2020, and then contracted in the following year.

There were significant differences in the average prices amongst the major exporting countries. In 2021, amid the top suppliers, the country with the highest price was Israel ($X per unit), while Turkey (less than $X per unit) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Turkey (+29.5%), while the other leaders experienced mixed trends in the export price figures.

Electronic Chip Imports

Imports in the Middle East

In 2021, purchases abroad of electronic chips increased by 13% to X units for the first time since 2018, thus ending a two-year declining trend. In general, imports, however, saw a drastic downturn. The growth pace was the most rapid in 2015 when imports increased by 28%. The volume of import peaked at X units in 2012; however, from 2013 to 2021, imports stood at a somewhat lower figure.

In value terms, electronic chip imports surged to $X in 2021. Over the period under review, imports recorded a relatively flat trend pattern. The level of import peaked at $X in 2016; however, from 2017 to 2021, imports remained at a lower figure.

Imports by Country

Turkey (X units) and Israel (X units) represented roughly 79% of total imports in 2021. It was distantly followed by the United Arab Emirates (X units), committing a 12% share of total imports. The following importers - Iran (X units) and Palestine (X units) - together made up 7.1% of total imports.

From 2012 to 2021, the biggest increases were recorded for Palestine (with a CAGR of +40.9%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, Israel ($X) constitutes the largest market for imported electronic chips in the Middle East, comprising 51% of total imports. The second position in the ranking was held by Turkey ($X), with a 24% share of total imports. It was followed by the United Arab Emirates, with a 17% share.

In Israel, electronic chip imports contracted by an average annual rate of -2.3% over the period from 2012-2021. In the other countries, the average annual rates were as follows: Turkey (+4.8% per year) and the United Arab Emirates (+10.4% per year).

Import Prices by Country

In 2021, the import price in the Middle East amounted to $X per unit, increasing by 43% against the previous year. Import price indicated a prominent expansion from 2012 to 2021: its price increased at an average annual rate of +6.6% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, electronic chip import price increased by +80.5% against 2018 indices. As a result, import price reached the peak level and is likely to continue growth in the immediate term.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Israel ($X per unit), while Palestine (less than $X per unit) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by the United Arab Emirates (+14.8%), while the other leaders experienced more modest paces of growth.

Source: IndexBox Platform

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