Computer Microchips Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2024-2032

Computer Microchips Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2024-2032

Global Computer Microchips Market was valued at USD 24.97 billion in 2023, with projections indicating a CAGR of over 10.7% from 2024 to 2032. A primary driver of this market is the surging demand for consumer electronics. As technology advances, consumer electronics ranging from smartphones and tablets to laptops are evolving, boasting sophisticated features. This evolution has spurred a consistent demand for high-performance microchips adept at efficiently managing complex tasks. Moreover, the global pivot towards smart homes and wearable devices amplifies this demand. For instance, data from IDC in July 2024 highlighted a 6.5% year-over-year rise in global smartphone shipments, reaching 285.4 million units in the second quarter of 2024 (2Q24), marking the fourth consecutive quarter of growth.

The industry's landscape is also reshaped by the transition to 5G technology. With its promise of faster speeds, reduced latency, and the capacity to connect numerous devices simultaneously, 5G is setting new benchmarks. This evolution demands microchips that can not only handle elevated data rates but also meet heightened processing requirements. Specifically, 5G-centric microchips must boast superior connectivity features and enhanced power efficiency. As telecom giants and device manufacturers pour investments into 5G infrastructure, the appetite for specialized microchips surges. A case in point: In May 2024, the Ghanaian government, collaborating with Radisys Corporation (a subsidiary of Reliance Industries Limited), unveiled plans to roll out affordable nationwide 5G mobile broadband services by the close of 2024, with a hefty USD 145 million investment in Ghana's infrastructure over the ensuing three years.

The overall industry is divided into chip type, architecture, application, end-use, and region.

Market segmentation by chip type includes logic chips, memory chips, ASICs, and SoCs. In 2023, logic chips dominated, capturing over 39% of the revenue share. Logic chips help in processing and managing data across computing systems. Encompassing microprocessors and field-programmable gate arrays (FPGAs), these chips are foundational to the operation of devices, from personal computers to expansive servers. With rising computing demands spurred by AI, big data, and high-performance computing applications, the call for advanced logic chips intensifies.

Market segmentation by architecture includes x86, ARM, RISC-V, and others. RISC-V emerged as the fastest growing segment, boasting a CAGR exceeding 13%. RISC-V, an open-source instruction set architecture (ISA), is carving a niche in the computer microchip arena, thanks to its inherent flexibility and cost advantages. Diverging from proprietary architectures, RISC-V empowers designers with the liberty to customize and extend the ISA.

Asia Pacific region commanded a dominant market share of over 50% in 2023 with forecasts suggesting it will maintain this lead throughout the projected period. The Asia-Pacific's supremacy in the computer microchips market is attributed to several strategic advantages. Notably, the region houses key semiconductor manufacturing powerhouses like Taiwan, South Korea, and China, which collectively account for a substantial portion of global microchip production.