Global System on Chip Market – Increase in Wafer Size to Boost Growth| Technavio

LONDON–(BUSINESS WIRE)–#EmbeddedSystems–The latest market research report by Technavio
on the global
system on chip (SoC) market
predicts a CAGR of more than 13%
during the period 2018-2022.


The report segments the global system on chip market by type (mixed
signal, digital, and analog) and by geography (the Americas, EMEA, and
APAC). It provides a detailed illustration of the major factors
influencing the market, including drivers, opportunities, trends, and
industry-specific challenges.

Here are some key findings of the global system on chip market,
according to Technavio
hardware
and semiconductor
researchers:

  • Low ASP of SoCs: a major market driver
  • Increase in wafer size: emerging market trend
  • APAC dominated the global SoC market in 2017, accounting for more than
    45% of the market share
  • In 2017, mixed signal SoCs held the largest market share, accounting
    for nearly 41% of the share

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Low ASP of SoCs: a major market driver

The low ASP of SoCs is one of the major factors driving the global
system on chip market
. SoCs are popular among mobile device
manufacturers because they are an important part of the production
process of these devices. This is primarily because of their low power
consumption that is essential for mobile devices (battery life is
vital). Furthermore, the low-cost ASP helps to keep a check on the cost
of manufacturing mobile devices, making it more affordable for the
consumer segment. The low cost of manufacturing can be credited to
simple manufacturing as well as packaging processes involved in the
production of SoCs. With further advances in semiconductor
manufacturing, the overall production process will get streamlined and
efficient, thereby resulting in a decline of the ASP. However, this low
cost is only applicable in the case of mass production.

According to a senior analyst at Technavio for research on embedded
systems
, “Though the developmental cost of SoCs is
considerable, there will be continuous investments in the development of
SoCs. This is because of the large-scale adoption in the smartphone
segment.”

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Increase in wafer size: emerging market trend

Over the last four decades, the global semiconductor industry witnessed
an increase in the size of silicon wafers, from 100 mm to 300 mm. The
shift to a larger diameter wafer reduces the cost of manufacturing
semiconductor ICs by 20%-25%. At present, the industry mostly uses
300-mm wafers to manufacture ICs. This trend is expected to maintain its
momentum during the forecast period. This is because the companies are
investing a substantial amount in the construction and upgrading of fabs
to manufacture 300-mm wafers.

Global market opportunities

In terms of regional dominance, APAC led the global
SoC market
in 2017, accounting for more than 45% of the market
share. This market is projected to grow in terms of revenue, mainly
driven by the focus of electronics manufacturing in the region. The
increasing number of manufacturing facilities in APAC, along with the
outsourcing of manufacturing facilities from the other regions with
respect to electronic goods, will help APAC maintain its leading
position in the market.

 

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