Global Semiconductor Industry in 2023

The global microchip industry is split between several geographical regions, according to the data from the semiconductor industry association shows. The design of the components is carried out mainly in the United States and South Korea, and the manufacturing and packaging are done in Taiwan and China. The semiconductor industry is mainly divided into several distinct stages – design, manufacture, and assembly of components.

Some companies that can do all the required steps in the semiconductor industry are called embedded device manufacturers (IDMs), like Samsung and Intel. The companies which do not have manufacturing facilities and design only electronic chips are known as fabless companies. Semiconductor revenue totaled USD 599.6 billion in 2022, expected to decline 11.2 percent in 2023. Also, Global semiconductor revenue is forecasted to total USD532 billion in 2023. The actual production of semiconductors in the case of manufacturing facilities is called foundries; and Samsung Electronics of South Korea, Taiwan Semiconductor Manufacturing Company Limited (TSMC), and United Microelectronics Corporation (UMC) of Taiwan were the three largest Asian companies of this group in 2022.

The semiconductor industry is experiencing a steady rise in demand due to the increasing use of their products, like smartphones and automotive/ industrial applications. The automotive semiconductor market is expected to achieve growth of 13.8 percent and reach USD76.9 billion in 2023. According to Gartner reports, the smartphone semiconductor markets have become stagnant in 2023 and represent 31 percent of semiconductor revenue in 2023.