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

The consumer standard logic IC market is expected to register a CAGR of 6.5% during the forecast period (2022 - 2027).

Key Highlights

• The electronic component market has encountered robust growth in the past few years owing to its expanding application areas. This growth is significantly contributed by the increase in consumer electronics products such as DVDs, TV, mobile phones, etc., and office automation products such as computers, printers, etc. This high growth has forced several companies in this industry to set up novel manufacturing facilities and expand their production capacity. Furthermore, continuous technological advancements are expected to boost the application areas of standard logic ICs, thus driving the growth of the consumer standard logic ICs market in the coming years.
• Advances made in CMOS and bipolar technologies have become an essential part of electronic designs. The growth of the consumer standard logic devices market has arisen from the advancements made in the packaging of modern, low-power logic products. The standards underlying configuration and functionality have grown simultaneously. The electronics manufacturers constantly seek to leverage the underlying technologies for designing and developing bipolar logic ICs. Standard logic ICs have emerged as a new staple for enforcing logic circuits.
• Further, standard logic ICs and packaging have become an essential framework for promoting the manufacturing of extended lifecycle products and generally supporting high lead times faced by manufacturers. Over the years, new partnerships and collaborations have cropped up to meet the rise in the need for standard logic ICs among semiconductor companies.
• COVID-19 has a negative market impact due to a significant increase in semiconductor shortages, as the COVID-19 coronavirus continues to impact economies, trade, manufacturing, and even consumer purchasing habits. Companies that manufacture semiconductor products must plan carefully to avoid impending component supply chain pitfalls in the coming years. Additionally, The CHIPS for America Act, included in the Fiscal Year 2021 National Defense Authorization Act (NDAA), seeks to identify and alleviate short-term semiconductor shortages and encourage more US manufacturing incentives for companies to manufacture these devices in the United States.

Key Market Trends

Steady Increase in Demand for Consumer Electronics

• With the ecosystem of connected devices flourishing, the application of logic ICs in smartphones is projected to boost the adoption rate. The United States is one of the major countries in the region driving the adoption of connected devices and supporting adoption of the technology.
• For instance, according to the Consumer Technology Association (CTA), and the US Census Bureau, the sales value of smartphones sold in the United States is forecasted to increase from USD 73 billion in 2021 to USD 74.7 billion in 2022.
• The increasing demand for smartphone, laptop, and tablets, and internet penetration across the world owing to the adoption of work-from-home and learn-from-home culture during the COVID-19 pandemic has further led to demand for advanced semiconductor components.
• Further, the advent of 5G has led to significant demand for 5G-enabled mobile phones worldwide. For instance, according to the most recent figures given by the Chinese government, Chinese subscribers are flocking to buy pricey new 5G cellphones. China's 5G phone shipments surpassed 266 million units in 2021, an increase of 63.5 % over the previous year. 5G accounted for 75.9% of total mobile phone shipments, according to data from the China Academy of Information and Communications Technology (CAICT).
• Thus, the growing demand for mobile phones are anticipated to drive the demand for advanced chips such as standard logic ICs during the forecast period.

Asia Pacific is Expected to Register a Significant Market Share During the Forecast Period

• Asia Pacific is anticipated to hold substantial market share during the forecast period. Significant demand for smartphones from countries, such as India, China, Japan, and South Korea, are encouraging many vendors to set up production facilities in the region. The availability of raw materials along with low establishment and labor costs have also motivated companies to establish their production centers in the region. Along with manufacturing benefits the strong demand and rapid growth is also influencing mobile phone companies to set up their production facilities in Asia Pacific region.
• Vivo, a Chinese smartphone manufacturer, is expanding its base in India and plans to start exporting 'Made-in-India' hardware in 2022. Vivo plans to boost yearly production capacity from 50 million devices to 60 million units this year, with the goal of scaling the manufacturing capacity further to 120 million units annually in India. Currently, cellphones made in India are meeting 100 % of the company's local demand. Vivo intends to complete Rs 3,500 crore of the Rs 7,500 crore manufacturing investment plan by 2023 in order to grow up its production capabilities. This increase in production capacity for export related purposes will certainly drive the demand for all types of advanced ICs for mobile phones in the region.
• Moreover, during shifting supply chains and macroeconomic policy, the government of China is spending aggressively on semiconductor investment, acquisition, and talent recruitment to uplift the industry by on-shoring chip manufacturing equal to those of the top global foundries.
• With 28 additional fab construction projects totaling USD 26 billion in new planned funding announced in 2021, China continues to expand its semiconductor manufacturing supply chain. SMIC and other Chinese semiconductor giants have increased their collaborations with local governments to build more joint venture fabs, focusing on mature technology nodes. Wafer manufacturing startups are flourishing in the cutting-edge fabrication area, thanks to government incentives.
• Furthermore, in order to achieve self-sufficiency, India's government has announced industry-friendly initiatives for the development of the country's semiconductor and display manufacturing ecosystem. For instance, in December 2021, the Union Cabinet approved an INR 76,000 crore budget for India's semiconductor manufacturing ecosystem, with incentives announced for electronic components, sub-assemblies, and finished items. The policy will support silicon semiconductor fabs, display labs, compound semiconductors/ silicon photonics/ sensors fabs, semiconductor packaging, semiconductor design, and modernization and commercialization of the Semiconductor Laboratory (SCL) at Mohali under the scheme for holistic development of the semiconductor and display manufacturing system.

Competitive Landscape

The Consumer Standard Logic IC Market is highly competitive and consists of several players. The market players adopt various strategies such as product innovation, mergers, and acquisitions. In addition, with the advancement in the IC manufacturing process, which provides enhanced applications, new market players are expanding their market presence and increasing their business footprint across the emerging economies. Some of the recent developments in the market are:

• In April 2022, National Institute for Materials Science (NIMS) and the Tokyo University of Science developed an organic anti-ambipolar transistor that can perform any one of the five logic gate operations (AND, NAND, OR, NOR or XOR) through adjusting the input voltages to its dual gates. This lightweight transistor with multiple logic gate capability can be utilized to develop electrically reconfigurable logic circuits that are possibly key to the development of high-performance mobile devices.
• In October 2021, Renesas Electronics Corporation announced that it is developing novel microcontrollers (MCUs) that are expected to support the Bluetooth 5.3 Low Energy (LE) Specification.

Additional Benefits:

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

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