Computer Microchips Market Forecasts to 2030 – Global Analysis By Type (Memory Chips, Logic Chips and Other Types), Application and By Geography

Computer Microchips Market Forecasts to 2030 – Global Analysis By Type (Memory Chips, Logic Chips and Other Types), Application and By Geography

According to Stratistics MRC, the Global Computer Microchips Market is accounted for $26.8 billion in 2023 and is expected to reach $61.6 billion by 2030 growing at a CAGR of 12.6% during the forecast period. A computer chip may also be referred to as an integrated circuit, a chip, or a tiny wafer of semiconductor material. The processor and memory components of a modern digital computer are chips. As technology develops, transistors are anticipated to become even tiny thanks to nanotechnology, and circuits to become proportionally more powerful. Millions of transistors on a computer microchip operate as on-and-off switches, while resistors regulate the electricity currents that travel back and forth between the transistors, capacitors store and release electricity, and diodes halt the flow of energy. Microchips make it unnecessary to segregate a component, which reduces the size of computers. An integrated circuit can accommodate more components for a lower price.

Market Dynamics

Driver

Growth in demand for small, light gadgets

One of the industries' most promising areas for growth is innovation. Mobile phone manufacturers use a lot of these semiconductor chips in their products, and because of their strong sales, these companies continue to put active pressure on chip manufacturers to supply them with high-quality components. This encourages various manufacturers to come up with innovative products in an effort to land supply deals with such tech giants. Another element that may spur industry expansion is the ongoing reduction in the size of electronic components due to the rise in demand for small and light gadgets.

Restraint

Declining personal computer demand

The decline in demand for personal computers is one of the main obstacles preventing the global market for computer microchips from growing. Since smartphones and tablets are more portable and user-friendly, there has been a decline in the market for personal computers. As a result, there is less of a demand for personal computer microchips. But it's anticipated that there will be some challenges the market must overcome that could prevent it from growing.

Opportunity

Rising demand for computing power

The need for computer microchips is rising quickly on a global scale. This is caused by a variety of elements, such as the growing need for computing power, the falling price of microchips, and the expanding range of microchip applications. The demand for processing power is rising as a result of the Internet of Things (IoT), AI, and big data. Microchips are a crucial component of the increasingly powerful computers that are needed to run these technologies.

Threat

Increasing rivalry from substitute technologies

The obstacle to the evolution of the worldwide market for computer microchips is the escalating competition from alternative technologies. Many different replacement technologies are offered on the market to replace microchips. Microchips cannot compete with these modern technologies for effectiveness and efficiency. As a result, the market is expected to grow more slowly as less people are expected to buy microchips.

Covid-19 Impact

The COVID-19 pandemic epidemic has had a significant negative influence on the market for computer microchips. It is determined that the market has declined based on input from numerous industry experts from different segments of the value chain, including OEMs, suppliers, integrators, end users, and distributors, as well as the financial disclosure of different businesses in the computer microchip ecosystem. The worldwide supply chain has also been interrupted by the pandemic outbreak, leaving a huge vacuum in the system. The pandemic's disruptive economic effects have been felt.

The memory chips segment is expected to be the largest during the forecast period

The memory chips segment is estimated to have a lucrative growth, due to the monitoring of health. The benefits can be summed up as the ability to combat theft and fraud as well as the new wave of microchip applications. Computer chips known as microchips are the cornerstone of contemporary computing. Millions of transistors are housed on these small silicon wafers, which can process and store data. The size, complexity, and power of microchips vary, but they are all used to make technology capable of carrying out tasks more quickly, correctly, and efficiently than a human could.

The automotive segment is expected to have the highest CAGR during the forecast period

The automotive segment is anticipated to witness the fastest CAGR growth during the forecast period. This market consists of automobiles, trucks, and buses. They function as a sort of electrical circuit to control the flow of electrons, acting as the brain of contemporary electronics. For this market, the semiconductor industry provides a wide range of goods, including as sensors, microcontrollers, and integrated circuits for power management.

Region with Largest share

Asia Pacific is projected to hold the largest market share during the forecast period owing to increasing demand for electronic products such as PCs, smartphones, and tablets in emerging countries. Microchips have a huge window of opportunity to China's inexpensive cost of raw materials and vast production capacity. It is anticipated to have a significant market growth due to its early technology advancement and expensive capital investment.

Region with highest CAGR

Europe is projected to have the highest CAGR over the forecast period, owing to increasing adoption of compact and smart devices. Consumer electronics device consumption growth is responsible for the industry's quick expansion as well as the rise in demand for hand-held and microcomputer processors. Furthermore, the development of the Internet of Things and automation processes necessitates high-performance and compact microchips, which is predicted to fuel market demand.

Key players in the market

Some of the key players profiled in the Computer Microchips Market include Samsung, TSMC, Broadcom Inc, Intel Corporation, Micron Technology Inc, NUVIA Corporation, AMD, Qualcomm Inc, NXP Semiconductors NV, Infineon, Texas Instruments Inc, Advanced Micro Devices INC, Taiwan Semiconductor Manufacturing Co. Ltd, ST Microelectronics NV, Celera and GCT Semiconductor.

Key Developments

In March 2022, Broadcom CEO Hock Tan announced record revenues for the company’s first fiscal quarter of $7.7 billion but quickly decried a chip backlog that grew by double digits over the prior quarter.

In December 2021, Samsung and IBM jointly announced a breakthrough in semiconductor design utilizing a new vertical transistor architecture that demonstrates a path to scaling beyond nanosheet, and has the potential to reduce energy usage by 85 percent compared to a scaled fin field-effect transistor.

Types Covered
• Memory Chips
• Logic Chips
• Other Types

Applications Covered
• Automotive
• Aerospace and Defense
• Consumer Electronics
• Healthcare
• Other Applications

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements