Semiconductors - Southeast Asia

Southeast Asia

Revenue in the Semiconductors market is projected to reach US$95.89bn in 2024.
Integrated Circuits dominates the market with a projected market volume of US$86.45bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 11.25%, resulting in a market volume of US$163.40bn by 2029.
In global comparison, most revenue will be generated in China (US$177.80bn in 2024).

Definition:

Semiconductors are the crucial building blocks of all the electronics we see daily. The semiconductor industry comprises companies that design, fabricate, assemble, test, and supply semiconductors that are suitable for various applications. The semiconductor market represents the market size of the semiconductors used in various electronics applications.

Structure:

The semiconductor market is structured into four different markets based on the functionality of the semiconductors as follows:

The Discrete Semiconductors market represents the semiconductors that have a basic function and are mostly built using a single semiconductor device. These are further used in an application in conjunction with other semiconductors.
The Integrated Circuits market is the largest market and represents the semiconductors that have specific functionality. They generally consist of several basic semiconductor devices. This market is further divided into Analog Integrated Circuits, Logic Integrated Circuits, Memory Integrated Circuits, and Micro Integrated Circuits.
The Optoelectronics market represents the semiconductors that have functionality related to light.
The last market Sensors & Actuators represents the semiconductors that sense real-world factors and those that actuate other devices.

Additional Information:

The semiconductor market comprises revenue, revenue change, and key player market shares as the key performance indicators. Only the revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included and the revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B), and governments (B2G). Further definitions of the markets can be found on respective pages.

Key players in this market include Samsung, Intel, SK Hynix, Qualcomm, Micron, etc.,

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Market

Region

Region comparison

Currency

Analyst Opinion

The Semiconductors market in Southeast Asia is experiencing significant growth and development.

Customer preferences: Customers in Southeast Asia have a strong preference for advanced and innovative semiconductor products. They are increasingly demanding high-performance chips that can support emerging technologies such as artificial intelligence, Internet of Things, and 5G. Additionally, customers in the region value cost-effective solutions that offer a good balance between price and performance.

Trends in the market: One of the key trends in the Semiconductors market in Southeast Asia is the increasing demand for consumer electronics. Southeast Asia is home to a large and growing middle class population, which has led to a rise in disposable income and consumer spending. This has translated into higher demand for smartphones, tablets, and other electronic devices, driving the need for semiconductors. Another trend in the market is the growing focus on manufacturing and assembly of semiconductors in Southeast Asia. The region offers a favorable business environment with competitive labor costs, skilled workforce, and supportive government policies. As a result, many semiconductor companies are setting up manufacturing facilities in countries like Malaysia, Thailand, and Vietnam to take advantage of these benefits.

Local special circumstances: Southeast Asia is a diverse region with varying levels of economic development and infrastructure. While countries like Singapore and Malaysia have well-established semiconductor industries and infrastructure, others are still in the early stages of development. This creates opportunities for both established players and new entrants to tap into the growing market potential. Additionally, the region is experiencing rapid urbanization and increasing connectivity, which is driving the demand for smart city solutions. Semiconductors play a critical role in enabling smart city technologies such as smart grids, intelligent transportation systems, and digital infrastructure. This presents a significant growth opportunity for semiconductor companies in Southeast Asia.

Underlying macroeconomic factors: Several macroeconomic factors are contributing to the growth of the Semiconductors market in Southeast Asia. The region has a young and growing population, which is driving demand for consumer electronics and other technology-driven products. Additionally, governments in Southeast Asia are actively promoting digital transformation and investing in infrastructure development, which is further fueling the demand for semiconductors. Furthermore, Southeast Asia is strategically located, serving as a gateway to other Asian markets. This makes it an attractive destination for semiconductor companies looking to expand their presence in the region. The presence of major electronics manufacturers and strong supply chain networks also contribute to the growth of the semiconductor industry in Southeast Asia. In conclusion, the Semiconductors market in Southeast Asia is experiencing significant growth and development driven by customer preferences for advanced and cost-effective solutions, the increasing demand for consumer electronics, the focus on local manufacturing and assembly, and the region's unique local special circumstances and underlying macroeconomic factors.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the money spent at the manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use the annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.