Computer microchips are small semiconductor module of packaged computer circuitry (integrated circuit) manufactured from a material such as silicon and may be used for logical or memory related functions in an electronic device. Microchips are used in all electronic devices starting from small flash drives to complex computers and even some motorized vehicles. These semiconductor device or integrated circuit is designed to control the entire electronic equipment. A computer microchip includes millions of transistors that acts like an on and off switch, the resistor which controls the electricity currents that move back and forth between the transistors, the capacitor which collects and releases electricity, and the diode which stops the flow of electricity. Microchips help computers become smaller by getting rid of the need to separate components. More and more components can be incorporated on integrated circuit at a lower cost.
Computer Microchip Market – Drivers and Restraints
The computer microchip market is expected to expand at a higher growth rate in the forecast period owing to the increasing demand of microchips in across diverse range of applications such as personal computers, in digital music players and power management circuits for smart phones is a key force expected to drive the global computer microchip market over the forecast period. Rising demand of smart phones and computers is expected to spur the demand of computer microchips is upcoming period. Introduction of IoT and automation process requires smaller and high performance microchips and is expected to drive the demand of computer microchips during forecast period. However, high cost of investment to build a state of art fabrication facility is some of the factor that is going to hinder the growth of the computer chip market. The key players are collaborating with various device designers to understand the involvement of a microchip have on different devices. These companies create market opportunities fabricating new systems which make use of microchips. Additionally, Efforts are being taken by many companies to upgrade their research and development activities to analyze further application that is expected to generate profitable growth opportunities for the computer microchip market in the forecast period.
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Computer Microchip Market – Segmentation
The global computer microchip market is segmented on the basis of product type, end user and region. On the basis of product type, the computer microchip market has been segmented into integrated device, fabless, and foundry. The computer microchip architecture and design often correspond to Moore’s law, in which the number of transistors doubles every two years. This creates opportunity for integrated device manufacturers to come up with new product to meet the rising demand of microchips with respect to its application. By end user, the computer microchip market has been segmented into consumer electronics, automotive, healthcare, military & civil aerospace and other applications. High demand of computer microchips medical devices, wearable devices and bodily implant is expected to contribute towards growth of the market. Surge demand of microchips for the self-driving cars is also expected to contribute towards the growth of the computer chip market.
Based on the geography, the global computer microchip market has been segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America. Asia Pacific which comprises China, India, South Korea, Australia and other rising economies captured significant market share followed by North America and Europe in 2017. Asia Pacific showed the fastest growth rate during the forecast period due to the emerging economies. China represents huge potential for the microchips with the low cost of raw materials and huge production facilities in the country. However, The U.S is expected to exhibit high market growth over the forecast period owing to its early technological advancement and high capital expenditure.
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Computer Microchip Market – Key Players
The global computer microchip market is highly fragmented with number of companies operating in the segment. Leading players are currently focusing on providing cost competitive products and acquiring small companies to gain market share in the market. The industry comprises of three types of companies; integrated device manufacturer such as Samsung Electronics, Intel Corporation, Texas Instruments, Cypress Semiconductor, Analog Devices, IBM among others; fabless manufacturers such as Qualcomm, Broadcom Ltd, Advanced Micro Devices (AMD), MediaTek, NVIDIA and among others; and foundry companies such as United Microelectronics, STMicroelectronics, Semiconductor Manufacturing International Corporation and Taiwan Semiconductor Manufacturing Company and others.
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