Global Interface IC Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global Interface IC Market is expected to register a CAGR of 15.5% over the forecast period from 2022 to 2027. The outbreak of COVID-19 across the globe significantly disrupted the supply chain and production of the studied market during the initial phase of 2020. Due to labor shortages, many of the players in the semiconductor supply chain worldwide had to reduce or even suspend their operations, which affected the market growth.

• The interface ICs are suitable for disposable medical devices and patches and sports and fitness equipment due to their small size and power-saving design. For instance, EnSilica, a fabless supplier of complex mixed-signal ASIC to OEMs, launched The ENS62020, an ultra-low-power healthcare sensor interface IC designed for monitoring vital signs in wearable healthcare and medical devices.
• The interface integrated circuit (IC) can recognize the external power source and select one of two battery charge current levels based on the type. Signal communications between different electronic systems are controlled and managed by interface ICs. Depending on the communication protocol, these ICs determine how data is transmitted.
• Semiconductor device manufacturers are integrating an increasing number of transistors per IC, leading to increased circuit design complexity and physical access limitations. It requires effective patterning that uses error-free masks to transfer the pattern onto wafers without any errors or defects. Therefore, the need for OEMs to have an edge in terms of device performance drives the market growth
• Also, a diverse range of interface ICs enables dependable, efficient, and cost-effective connections while maintaining the highest signal isolation and protection standards.
• However, the packaging and assembly houses have taken steps towards providing cost-effective solutions by offering flip-chip packaging options on a standard lead frame (FCSOL), quad flat pack no leads (QFN), and standard bis-maleimide triazine (BT) resin substrates. Whereas there may still be costs upfront in the wafer fabrication process, assembly houses are using proven technologies and innovative processes to provide customers with better solutions.

Key Market Trends

Automotive Segment Expected to Witness Significant Market Share

• Automotive is one of the significant end users of the market. The advancement in automotive and its manufacturing is also driving the need for compact power-efficient devices.
• The growing adoption of advanced driver-assistance systems (ADAS) and increasing government regulations globally mandating ADAS are also expanding the scope of this segment. Also, the growing adoption of vehicle infotainment is expected to provide growth opportunities. The growing complexity of automotive digital applications requires the constant evolution of Interface IC and technologies.
• Automotive in-vehicle infotainment (IVI) systems are growing more advanced, and panel options are expanding beyond the widely used Low-voltage differential signaling (LVDS) display as the number of displays they contain increases. For instance, in June 2020, Toshiba Electronic Devices & Storage Corporation added two additional interface bridge ICs to its display interface bridge ICs for automobile In-Vehicle Infotainment (IVI) systems investments by market vendors are expected to drive the demand.
• The market is more focused on innovating the product lines. For instance, in February 2021, Allegro MicroSystems, Inc., a global pioneer in motion control and energy-efficient systems sensing and power solutions, announced the A17700, an automotive-grade interface IC for resistive bridge pressure sensors with signal conditioning algorithms.
• The rapid deployment of 5G networks, coupled with the increasing Internet of Things (IoT) applications for GaNdevices, such as assisted driving and vehicle-to-everything (V2X) communication for smart transport, is expected to increase the demand for Interface ICs.

Asia-Pacific Region Expected to Witness Significant Market Share

• Asia-Pacific holds a prominent share in the global market due to a significant number of regional semiconductor manufacturing operations. The pure-play manufacturers operating in the region are increasing their production capacity to cater to the growing demand from fabless vendors. China is also trying to consolidate its substrate manufacturing market, driving market growth.
• The region vendors are actively more focused on diversifying into non-handset chip segments. For instance, in April 2022, Chunghwa Precision Test Tech (CHPT), a Taiwanese IC test interface expert, is working on expanding deployments beyond handsets as demand for smartphones is growing.
• The growing investment in 5G infrastructure, the increasing number of data center servers and IoT connections, and the advancements in networking devices are some of the major factors driving the growth of the IT and telecom segment in the region.
• The vendors are expanding their production capacities in China to gain a share in the market with demand from sectors such as IT & telecom and the automotive industry during 2020. For instance, in May 2021, AT&S, an Austrian Electronics Component supplier, announced that it is investing EUR 450 million in expanding capacity in its Chongqing factory.
• Further, In May 2021, the Japanese government finalized a plan to enlist one of the major semiconductor companies, Taiwan Semiconductor Manufacturing Co., to develop chip-making technologies in Japan. Such factors also contribute to the growth of the market for interface IC.

Competitive Landscape

The Interface IC Market is moderately competitive, with many regional and global players. The players are adopting strategies like collaboration, partnership, and agreement as their key developmental strategies.

• February 2022 - Onsemi, a provider of intelligent power and sensor solutions, adopted a fab-liter manufacturing approach to achieve long-term financial success by increasing gross margins.
• August 2021 - Analog Devices, Inc. announced completing the acquisition of Maxim Integrated Products, Inc. With a trailing twelve-month revenue of more than USD 9 billion, ADI's position as a high-performance analog semiconductor manufacturer is further strengthened.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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