Semiconductor Device Market

The semiconductor device market is projected to see growth in both volume and value from 2022 to 2030, with China leading in consumption and production. The global production of semiconductor devices has been on a decline, with Germany being the top producer. Imports and exports of semiconductor devices have shown fluctuations in volume and value, with China dominating the market as the largest importer and exporter. Average import and export prices have also seen fluctuations over the years, with Singapore leading in export price per unit.

Market Forecast

Driven by increasing demand for semiconductor devices worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to accelerate, expanding with an anticipated CAGR of +3.6% for the period from 2022 to 2030, which is projected to bring the market volume to 37B units by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +6.1% for the period from 2022 to 2030, which is projected to bring the market value to $322.8B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Semiconductor Devices

In 2022, after five years of growth, there was significant decline in consumption of semiconductor devices, when its volume decreased by -5.1% to 28B units. Overall, consumption, however, continues to indicate a relatively flat trend pattern. Global consumption peaked at 30B units in 2014; however, from 2015 to 2022, consumption stood at a somewhat lower figure.

The global semiconductor device market size contracted slightly to $200.5B in 2022, remaining stable against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption, however, posted a buoyant expansion. Global consumption peaked at $202.9B in 2021, and then fell in the following year.

Consumption By Country

China (23B units) constituted the country with the largest volume of semiconductor device consumption, accounting for 82% of total volume. Moreover, semiconductor device consumption in China exceeded the figures recorded by the second-largest consumer, Germany (2.6B units), ninefold. The third position in this ranking was held by Malaysia (590M units), with a 2.1% share.

From 2012 to 2022, the average annual growth rate of volume in China stood at +8.4%. The remaining consuming countries recorded the following average annual rates of consumption growth: Germany (-3.0% per year) and Malaysia (-5.1% per year).

In value terms, China ($187.5B) led the market, alone. The second position in the ranking was held by Germany ($337M). It was followed by Malaysia.

In China, the semiconductor device market increased at an average annual rate of +8.4% over the period from 2012-2022. In the other countries, the average annual rates were as follows: Germany (+6.3% per year) and Malaysia (-3.7% per year).

In 2022, the highest levels of semiconductor device per capita consumption was registered in Singapore (83 units per person), followed by Germany (31 units per person), Malaysia (18 units per person) and China (16 units per person), while the world average per capita consumption of semiconductor device was estimated at 3.5 units per person.

From 2012 to 2022, the average annual rate of growth in terms of the semiconductor device per capita consumption in Singapore stood at -27.9%. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: Germany (-3.2% per year) and Malaysia (-6.3% per year).

Production

World Production of Semiconductor Devices

In 2022, global production of semiconductor devices shrank markedly to 5.5B units, which is down by -15.8% against 2021 figures. In general, production continues to indicate a noticeable descent. The growth pace was the most rapid in 2019 with an increase of 19%. Over the period under review, global production attained the maximum volume at 7.6B units in 2012; however, from 2013 to 2022, production stood at a somewhat lower figure.

In value terms, semiconductor device production contracted slightly to $12.4B in 2022 estimated in export price. Over the period under review, the total production indicated a mild increase from 2012 to 2022: its value increased at an average annual rate of +1.4% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production increased by +3.2% against 2020 indices. The pace of growth appeared the most rapid in 2013 with an increase of 58%. Over the period under review, global production attained the peak level at $17.5B in 2017; however, from 2018 to 2022, production stood at a somewhat lower figure.

Production By Country

The country with the largest volume of semiconductor device production was Germany (2.6B units), accounting for 48% of total volume. Moreover, semiconductor device production in Germany exceeded the figures recorded by the second-largest producer, Malaysia (1.1B units), twofold. The third position in this ranking was held by Japan (909M units), with a 17% share.

In Germany, semiconductor device production contracted by an average annual rate of -2.9% over the period from 2012-2022. In the other countries, the average annual rates were as follows: Malaysia (-2.7% per year) and Japan (-11.9% per year).

Imports

World Imports of Semiconductor Devices

After four years of growth, overseas purchases of semiconductor devices decreased by -3.2% to 31B units in 2022. Overall, imports continue to indicate a slight descent. The pace of growth appeared the most rapid in 2018 when imports increased by 452%. Over the period under review, global imports hit record highs at 36B units in 2014; however, from 2015 to 2022, imports remained at a lower figure.

In value terms, semiconductor device imports reduced to $3.5B in 2022. The total import value increased at an average annual rate of +2.8% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2021 when imports increased by 31%. As a result, imports attained the peak of $3.9B, and then declined in the following year.

Imports By Country

China dominates imports structure, recording 28B units, which was approx. 91% of total imports in 2022. Singapore (1,086M units) and Malaysia (611M units) followed a long way behind the leaders.

China was also the fastest-growing in terms of the semiconductor devices imports, with a CAGR of +3.7% from 2012 to 2022. Malaysia (-5.5%) and Singapore (-22.2%) illustrated a downward trend over the same period. China (+34 p.p.) significantly strengthened its position in terms of the global imports, while Singapore saw its share reduced by -34.8% from 2012 to 2022, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, China ($647M) constitutes the largest market for imported semiconductor devices worldwide, comprising 18% of global imports. The second position in the ranking was held by Singapore ($200M), with a 5.7% share of global imports.

In China, semiconductor device imports increased at an average annual rate of +7.6% over the period from 2012-2022. In the other countries, the average annual rates were as follows: Singapore (-3.4% per year) and Malaysia (-2.4% per year).

Import Prices By Country

The average semiconductor device import price stood at $0.1 per unit in 2022, waning by -6.6% against the previous year. Overall, the import price, however, posted measured growth. The most prominent rate of growth was recorded in 2015 an increase of 465%. Over the period under review, average import prices reached the maximum at $0.6 per unit in 2017; however, from 2018 to 2022, import prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Malaysia ($0.3 per unit), while China (less than $0.1 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Singapore (+24.2%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Semiconductor Devices

In 2022, approx. 8.9B units of semiconductor devices were exported worldwide; with a decrease of -6% compared with the previous year's figure. Over the period under review, exports showed a abrupt contraction. The pace of growth appeared the most rapid in 2018 when exports increased by 244%. The global exports peaked at 16B units in 2012; however, from 2013 to 2022, the exports failed to regain momentum.

In value terms, semiconductor device exports declined sharply to $3.3B in 2022. In general, exports continue to indicate a pronounced decrease. The growth pace was the most rapid in 2014 when exports increased by 19% against the previous year. As a result, the exports attained the peak of $4.9B. From 2015 to 2022, the growth of the global exports remained at a lower figure.

Exports By Country

China was the largest exporter of semiconductor devices in the world, with the volume of exports reaching 5.6B units, which was near 63% of total exports in 2022. Malaysia (1,146M units) held a 13% share (based on physical terms) of total exports, which put it in second place, followed by Japan (10%) and Singapore (7.3%). Thailand (293M units) took a little share of total exports.

From 2012 to 2022, average annual rates of growth with regard to semiconductor device exports from China stood at -5.2%. At the same time, Thailand (+50.8%) and Malaysia (+29.4%) displayed positive paces of growth. Moreover, Thailand emerged as the fastest-growing exporter exported in the world, with a CAGR of +50.8% from 2012-2022. By contrast, Singapore (-10.9%) and Japan (-12.0%) illustrated a downward trend over the same period. Malaysia (+12 p.p.), Thailand (+3.3 p.p.) and China (+1.8 p.p.) significantly strengthened its position in terms of the global exports, while Singapore and Japan saw its share reduced by -5.9% and -10.7% from 2012 to 2022, respectively.

In value terms, the largest semiconductor device supplying countries worldwide were Singapore ($359M), Malaysia ($275M) and Japan ($125M), together comprising 23% of global exports. Thailand and China lagged somewhat behind, together comprising a further 0.4%.

In terms of the main exporting countries, Thailand, with a CAGR of +14.7%, saw the highest growth rate of the value of exports, over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

The average semiconductor device export price stood at $0.4 per unit in 2022, falling by -17.9% against the previous year. Overall, the export price, however, continues to indicate a moderate increase. The pace of growth was the most pronounced in 2015 when the average export price increased by 99%. Over the period under review, the average export prices attained the maximum at $1.4 per unit in 2017; however, from 2018 to 2022, the export prices failed to regain momentum.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Singapore ($0.5 per unit), while China (less than $0.1 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Singapore (+16.1%), while the other global leaders experienced mixed trends in the export price figures.

Source: IndexBox Market Intelligence Platform