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

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

The Global Special Purpose Logic IC Market is expected to register a CAGR of 5.9% over the forecast period. 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.

Key Highlights

• The demand for memory devices due to the ongoing technological advancements such as artificial intelligence and their integration into the end-user devices is fostering the demand for semiconductors. Logic devices are used in application-specific integrated circuits and signal processors, accelerating market demand.
• The market studied is strongly impacted by the industrial output and the investment funneled into computers and software. The systems have traditionally been the foundation of both process and discrete factory automation. The growing adoption of Industry 4.0 across the industrial verticals has augmented the market studied.
• The complexity associated with the design of special purpose logic integrated circuits can hinder the market's growth. Additionally, factors such as the high cost of manufacturing customized circuits, the cost of circuit design, and functional reliability issues are expected to hinder the market's growth for special purpose logic-integrated circuits in the coming years.
• The COVID-19 pandemic boosted the demand for certain segments in the consumer electronic market across the globe. In various markets, demand for PCs and laptops witnessed a significant surge. Furthermore, gaming consoles & devices and fitness consumer devices witnessed record-break sales during the pandemic. For instance, in 2020, lower notebook ASPs were recorded, resulting from higher demand for consumer education PCs globally. Time spent on PCs has increased dramatically across all major usage categories, as well as the number of PCs per household.

Key Market TrendsGrowing Adoption of Logic IC in Automotive Industries

• The increasing demand for electric vehicles worldwide, because of rising consumer awareness about environmental pollution and rising oil prices, is influencing semiconductor demand which has led the market of special purpose logic IC to grow.
• To keep drivers safe, special purpose logic integrated circuits are used in vehicles. ICs improve connectivity driving and safety innovation among drivers, which is expected to fuel market demand. The rapid electrification of vehicles is driving the growth of the automotive special purpose logic IC market.
• 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 infotainment in vehicles is expected to provide growth opportunities. The growing complexity of automotive digital applications requires the constant evolution of special purpose logic IC and technologies.
• The factors driving the global special purpose logic integrated circuit market's growth include increased vehicle production, rising demand for electric vehicles, and the growing need for electronics in vehicles to enhance their features. Additionally, several technological advancements, such as the implementation of IoT and favorable government standards for the production of autonomous, connected, and low-emission vehicles, are further fuelling the market growth of the automotive integrated circuit during the forecast period.

Asia Pacific Expected to Witness Significant Market Share

• Asia-Pacific holds a prominent share of the market due to a significant number of semiconductor manufacturing operations in the region. The pure-play manufacturers operating in the region are increasing their production capacity to cater to the growing demand from fabless vendors.
• The Thai government launched an EV action plan in 2016 to encourage the production of BEVs and PHEVs to have 1.2 million such vehicles on the road by 2036. As a result, 13 companies have benefited from preferential tax treatment for electric vehicles. Thailand announced an EV roadmap in March 2020 to produce 250,000 EVs by 2025 and establish an ASEAN EV hub, which will drive market growth.
• Japan holds a significant position in the market as it is home to some of the significant IC chipset manufacturers and the electronics industry. The country focuses on luring semiconductor companies and engaging in partnerships with other nations to boost its semiconductor industry.
• Also, in April 2021, Japan and the United States agreed to partner on sensitive supply chains, including semiconductors. With Japan and the U.S. combining their respective strengths and sharing responsibilities, Japan plans on reinstating its competitiveness, signaling a comeback for the Japanese semiconductor industry.
• Due to the escalating technology standoff with the United States, China is strengthening its efforts to strengthen local software companies. This trend has touched many sectors, including chip access, 5G network construction, social media applications, and internet regulation. Beijing considers the technology industry strategically important, and government funding is projected to grow in the coming years.

Competitive Landscape

The Global Special Purpose Logic IC Market is moderately competitive, with a considerable number of regional and global players.

• February 2022 - AMD announced the acquisition of fabless semiconductor company Xilinx to increase the company's presence in India. The acquisition of Xilinx by AMD for USD 35 billion is one of the largest deals in the semiconductor industry.
• August 2021 - Renesas Electronics Corporation, a premier supplier of advanced semiconductor solutions, and Dialog Semiconductor Plc, a provider of battery and power management, Wi-Fi, Bluetooth low energy, and Industrial edge computing solutions, announced the completion of Renesas’ acquisition of the entire issued and to be issued share capital of Dialog.

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