What are the Historical Developments and Current Growth Metrics of the Computer Microchip Market?
The computer microchip market has seen considerable growth due to a variety of factors.
• The size of the computer microchip market has seen rapid development in the past few years. It is projected to escalate from $24.17 billion in 2024 to reach $26.85 billion in 2025, exhibiting an 11.0% compound annual growth rate (CAGR). The expansion during the historic time frame can be associated with a surge in consumer electronics demand, expansion of personal computers, the proliferation of the internet, enhanced investment in research and development, and the adoption of Internet of Things (IoT).
What is the Forecasted Market Size and CAGR for the Computer Microchip Market?
The computer microchip market is expected to maintain its strong growth trajectory in upcoming years.
• Anticipated to experience a quick expansion in the coming years, the computer microchip market is projected to reach $40.31 billion by 2029, advancing at a compound annual growth rate (CAGR) of 10.7%.
This surge during the expected period can be credited to factors such as the progression in semiconductor technology, the expansion of 5G networks, the burgeoning need for edge computing, the evolution of wearable technology, and the proliferation of artificial intelligence (AI). Significant trends for the forecasted stretch include the incorporation of advanced security systems, the creation of specialized chips, the growth of the internet of things (IoT) technology, advancements in smart devices, and the uptake of smart home technologies.
What Are the Critical Driver Fuelling the Computer Microchip Market's Growth?
The surge in use of consumer electronics is poised to boost the computer microchip market's expansion. Designed for personal use to facilitate entertainment, communication, and individual management, consumer electronics aim to simplify daily life with user-friendly technology. Their growing popularity can be attributed to factors like connectivity, remote work and learning options, affordability, and easy access. Computer chips serve as the devices' central processing units, carrying out tasks and ensuring smooth performance. They manage connectivity and power usage to enhance battery life in portable electronics devices. For instance, in May 2023, the Japan Electronics and Information Technology Industries Association reported that Japan's total electronics equipment production peaked at $4919 million (¥771,457 million). Of this total, consumer electronics production amounted to $204.67 million (¥32,099 million), a significant increase from $161.12 million (¥25,268 million) in May 2022. Hence, it is evident that the escalating use of consumer electronics fuels the computer microchip market's growth.
What are the Market Segments in the Computer Microchip Market?
The computer microchip market covered in this report is segmented –
1) By Type of Microchip: Central Processing Unit (CPU), Graphics Processing Unit (GPU), Memory Chips, Application-Specific Integrated Circuit (ASIC), Field-Programmable Gate Array (FPGA), Other Types Of Microchip
2) By Application: Data Processing, Graphics Rendering, Artificial Intelligence And Machine Learning, Networking And Connectivity, Sensor Integration, Encryption And Security, Other Applications
3) By End-Use Industry: Consumer Electronics, Automotive, Industrial, Healthcare, Aerospace And Defense, Telecommunications, Other End-Use Industries
Subsegments:
1) By Central Processing Unit (CPU): Desktop CPUs, Mobile CPUs, Server CPUs, High-Performance Computing CPUs
2) By Graphics Processing Unit (GPU): Integrated GPUs, Discrete GPUs, Mobile GPUs, Professional Graphics GPUs
3) By Memory Chips: Dynamic Random Access Memory (DRAM), Static Random Access Memory (SRAM), Flash Memory, Read-Only Memory (ROM)
4) By Application-Specific Integrated Circuit (ASIC): Digital ASICs, Analog ASICs, Mixed-Signal ASICs, FPGA-Based ASICs
5) By Field-Programmable Gate Array (FPGA): Low-Power FPGAs, High-Performance FPGAs, Embedded FPGAs, Flash-Based FPGAs
6) By Other Types Of Microchip: System On Chip (SoC), Network Processors, Digital Signal Processors (DSP), Microcontrollers (MCU)
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What Trends are Shaping the Computer Microchip Market?
Key players in the computer microchip industry are striving to create innovative products like high-bandwidth memory chips to cater the rising needs for quicker data processing and aid demanding computing tasks. High-bandwidth memory (HBM) chips enhance data transfer and interaction between memory and processors, thereby providing an extensive data pathway. To illustrate, Samsung Electronics Co. Ltd., a consumer electronics firm based in South Korea, unveiled HBM3E 12H, the 'highest-capacity to date' memory chip for AI, in February 2024. The chip delivers an impressive bandwidth of up to 1,280 gigabytes per second (GBps) along with a 36 gigabytes (GB) capacity, indicating a 50% improvement in bandwidth and capacity. It is the first 12-stack HBM3E DRAM on the market, catering to the growing requirements of AI and high-performance computing. Samsung's thermal compression non-conductive film (TC NCF) technology ensures that the 12-layer stack is of the same height as 8-layer setups. It efficiently manages heat and mitigates chip die warping, making it ideal for usage in high-demand AI applications and data centers.
Who Are the Key Players in the Computer Microchip Market?
Major companies operating in the computer microchip market are include:
•Samsung Electronics Co. Ltd.
• Taiwan Semiconductor Manufacturing Company Limited
• Intel Corporation
• Qualcomm Incorporated
• Micron Technology Inc.
• NVIDIA Corporation
• Toshiba Corporation
• Advanced Micro Devices Inc.
• Texas Instruments Incorporated
• STMicroelectronics N.V.
• MediaTek Inc.
• Infineon Technologies AG
• NXP Semiconductors N.V.
• Analog Devices Inc.
• Renesas Electronics Corporation
• ON Semiconductor Corporation
• Microchip Technology Inc.
• Marvell Technology Group Ltd.
• Cadence Design Systems Inc.
• Nuvoton Technology Corporation
• Silicon Laboratories
• Cypress Semiconductor Corporation
What are the Regional Insights into the Computer Microchip Market?
Asia-Pacific was the largest region in the computer microchip market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the computer microchip market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
