A semiconductor is a material that in some cases will conduct electricity but not in others. Silicon semiconductors are the most important commercial semiconductors, though many others are used. They can be made into transistors, which are small amplifiers. Transistors are used in computers, mobile phones, digital audio players, and many other electronic devices.
Semiconductors were being studied in laboratories as early as the 1830s. In 1833 Michael Faraday was experimenting with silver sulfide. He discovered that as the material was heated it conducted electricity better. A number of other early experimenters discovered other properties of semiconductors. In 1947 at Bell Labs in New Jersey, the transistor was invented. This led to the development of integrated circuits, which power almost all electronic devices today.
Today, semiconductors are used far and wide. Semiconductors can be found in nearly every electronic device, such as desktop computers, the Internet, tablet devices, smartphones, etc. The two most important semiconductor companies leading Semiconductor Market Share are Dell and Samsung. You can find Semiconductor Market Size, Semiconductor Market Share, and other trends and statistics below and you can learn more about T4's strategy consulting services here.
The chart shows the Semiconductor Market Size over a forecast period from 2016 to 2022. In 2020, the size of the Semiconductor Industry was $503B and is projected to grow 6% in 2021. From 2016 to 2022 the Semiconductor Industry growth rate is projected to average 9% per year. These estimates were made before the Coronavirus (COVID-19) pandemic. The short term impact of COVID-19 on the Semiconductor market growth will likely be High because Semiconductor demand will decline this year compared to 2019. The decrease will vary depending on the end markets.
Demand for PC semiconductors will decline because companies will delay planned hardware upgrades and other long-term migration projects. Stable laptop and tablet demand will partly offset this drop since many consumers will upgrade their private IT infrastructure to support their work or homeschooling activities, even if they are cutting back in other areas.Demand for semiconductors used in wireless communication applications will see one of the sharpest drops in 2020 since the level of mobile-phone sales is expected to drop significantly over the coming months; also it is expected that consumer preferences shift to less expensive phones, which will also negatively affect demand for semiconductors. In areas that have not launched 5G networks, telecom providers will likely postpone investments and instead focus on improving their existing networks to accommodate rising data traffic.
Demand for semiconductors used in wired communication applications will increase because of several pandemic-related factors, including more security upgrades for existing enterprise infrastructures as more employees work from home, increase in fixed broadband usage in some countries which will lead to more purchases of cable/DSL and wireless routers as workers upgrade internet connections in private home offices, higher internet traffic which will spur demand for switches and routers, greater demand for cloud services and associated computing nodes, which will increase the need for optoelectronics in data center fiber connections, increase in video streaming across many networks. The demand for consumer-electronics semiconductors will decrease, although there was a recent rise in demand for gaming devices, audio equipment, and some kitchen appliances—a trend likely occurring because people are spending more time at home. The automotive semiconductor market is expected to decrease as a result of the sharp fall in car sales in 2020.
Demand is expected to decline also for all industrial applications and end markets through 2020 as companies postpone infrastructure investments, reduce manufacturing activities, or decrease operations. The long term impact of COVID-19 on the Semiconductor market growth beyond the COVID-19 pandemic will likely be Medium because by late 2020 the semiconductor market for servers could increase, driven by a strong uptick in video streaming and conferencing as more people work from home. Demand for enterprise IT and enterprise cloud solutions is expected to remain stable or show a minor decline as some companies cut IT budgets while others accelerate their cloud-migration plans. Increased server demand may not persist past 2020, however. The recovery of mobile-phone sales will vary by geography, with China likely to see an uptick before Europe and the United States, since its economy is closer to recovery.
The short term growth in wired communications will only be temporary since many of the mentioned investments are one-time purchases that will reduce future replacement needs.The automotive and industrial applications semiconductors will continue on a drop until the industry recovers. Request help with obtaining the source for this data and learn more about T4's strategy consulting services here.
The chart shows Semiconductor Market Share in 2019. The Semiconductor Market is Fragmented among many vendors. The leading vendor in the Semiconductor Industry was Intel with 16% market share in 2019, followed by Samsung with 12.5% Semiconductor market share, SK Hynix with 5.4% market share, Micron Technology with 4.8%, Broadcom with 3.7%, Qualcomm with 3.2%, Texas Instruments with 3.2%, STMicroelectronics with 2.2%, Kioxia (Toshiba Memory) with 2.1%. Get help with market research for the Semiconductor market, including the source for this Semiconductor Market Share chart and learn more about T4's strategy consulting services here.
Semiconductor growth drivers are related to the emergence of new packaging technologies, the development of several end markets. The application of semiconductor can grow depending on the increasing penetration of consumer electronics which involves the development of semiconductors, the development of new wireless and wired communications, growth in the automotive industry, including the development and penetration of electric cars, the penetration of medical devices in the healthcare sector, the advent of artificial intelligence and machine learning which are creating a need for powerful semiconductor chips which can compute answers for large data sets., the increasing amount of data created and the need for data storage.Learn about T4's Consulting services
Semiconductor is a Developing market composed of many competitors. Intel market share was 15.7% of the Semiconductor market in 2019. Intel reclaimed its position as the No. 1 global semiconductor vendor by revenue in 2019, recovering the position from Samsung Electronics, which held it for the past two years. Intel's semiconductor revenue declined 0.7% in 2019, driven by a slowdown in the server market, an ongoing constrained CPU supply and the 4Q19 sale of its cellular modem business to Apple. Samsung market share was 12.5% of the Semiconductor market in 2019. Samsung dropped to the No. 2 position due to the downturn in the memory market. Like all memory vendors, the company struggled with oversupply and falling prices in both the DRAM and NAND flash markets. Samsung's memory revenue, which accounted for 82% of its sales, declined 34% in 2019. SK Hynix had 5.4% Semiconductor market share in 2019. SK Hynix held the third position in 2019, with a revenue fall compared to the previous year, due to the downturn in the memory market for the decline in the prices from DRAM and NAND chips. Micron Technology had 4.8% Semiconductor market share in 2019. Micron Technology also suffered a revenue fall in 2019 vs 2018, as a consequence of prices dropping in the chip market.
T4's research team can help you learn more about the Semiconductor industry with market analysis, competitive landscape analysis, commercial Due Diligence, and other market research needs. This includes deeper analysis on competitors in the Semiconductor market, including: Broadcom, Intel, Qualcomm, Samsung, SK Hynix, Taiwan Semiconductors, Texas Instruments, Toshiba, Maxim Integrated Products, Micron Technology, NVIDIA; research into related topics such as Artificial Intelligence Semiconductor, Analog Power Management, Mobile Phone and Tablet Application Processor, Wired Communications Semiconductor, Embedded Optical Module, Field-Programmable Gate Array, MEMS Built Semiconductors; or additional support in the Technology, Artificial Intelligence, Healthcare, Automotive, Pharma & Life Sciences, Infrastructure, Industrials Sectors or others. Learn more about T4's strategy consulting services here.