Asia-Pacific micro components market is estimated to be valued at US$47.698 billion in 2020.
Semiconductor micro components are an essential component of any electronic device, including smartphones, laptops, automated door locks, coffee makers, wearable devices, GPS-enabled pet trackers, mobile phones, and other devices that contribute to creating a network of connected devices. According to The Semiconductor Industry Association (SIA), worldwide semiconductor sales were $41.8 billion in April 2021, a 1.9 percent increase from the $41.0 billion total in March 2021 and a 21.7 percent increase from the $34.4 billion total in April 2020. The global demand for electronic devices has a direct impact on the demand for semiconductor micro components. The Asia Pacific region's rapid growth in consumer electronics production and demand is fueling the demand for micro components. Furthermore, the growing popularity of smartphones and smart wearables, as well as the brisk expenditure by manufacturers in this region to bring out cutting-edge technology, are expected to drive demand for these components at a significant rate. Simultaneously, various government policies encouraging data centre development will have a significant impact on the semiconductor micro-components market in this region during the forecast period.
Market Trend
The Semiconductor micro component market is expected to dominate the market due to the growing popularity of internet of things (IoT) devices in the market. The increasing acceptance of implanted DSP (digital signal processors) in the production of high-performance smartphones to process more MIPS (million instructions per second) while using less power will propel the semiconductor micro-components market even further. Furthermore, the advancement of VLSI (very large scale integration) technology to meet the surging demand for technologically advanced DSPs required for power-efficient smart gadgets, televisions, and air conditioners. In 2020, according to observatory economic complexity and international trade centre, the top exporters & importers of semiconductors micro components were the Asia Pacific region making it the largest consumer of the devices and were contributing more than half of the revenues of the industry.
Growth Factors
A rise in demand for microprocessors
Due to increasing demand for smartphones, computers, and other consumer electronic devices, COVID-19 has led to increased demand for microprocessors, hence increasing the overall price for it. As a result of the rise in demand, microprocessor prices are expected to rise by about 3.2 percent over the next year, according to semiconductor buyers according to north shores Components.
Restraint
Low Revenue inflow for manufacturers
A low point for manufacturers in the Asia- pacific, majorly Taiwan, as its one of the largest manufacturers of semiconductors and micro components in the world. The country is home to Taiwan Semiconductor Manufacturing Limited (TSMC), United Microelectronics Corporation, and other major players that are propelling Taiwan's semiconductor industry. Furthermore, Taiwan has been the world's largest consumer of semiconductor materials for more than a decade, according to SEMI's March 2021 report. Nevertheless, due to decrease in the offering price of the semiconductor micro components results in a lower revenue influx for the manufacturers will further derail the growth of the semiconductor micro components in the forecasted period.
Impact of COVID-19 Pandemic:
The COVID-19 pandemic had a negative impact on the market during the first quarter of 2020, causing disruptions in supply chains in China and other significant electronics manufacturing countries in Asia, resulting in a global shortage of semiconductor chips. As a result, various businesses are focusing on increasing their orders and maintaining a stockpile of the required semiconductor components for end-product manufacturing to avoid delays in the event of a component shortage. According to Semiconductor Industry Association, markets dropped in 2020 but picked up their pace in march 2021, with sales increasing by 21.7%.
Segmentation: