Description

According to the Market Statsville Group (MSG), the Asia-pacific power semiconductor Market was valued at USD 65300 million in 2023 and is expected to grow from USD 69218 million in 2024 to USD 99900 million by 2033, by exhibiting a CAGR of 6% during the forecast period (2024-2033)

The Asia-Pacific is a growing power semiconductor market, primarily due to the growing need for energy-efficient electronics and technology improvements. Power semiconductors are the essential components for use in consumer electronics products, industrial processes, renewable resources, and vehicles and automotive. Smartphone devices, laptops, and other consumer electronics accompany increased demands for power semiconductors as they help manage devices’ power efficiently. On the same note, the region is gradually embracing renewable sources of energy, such as solar and wind energy. These power semiconductors play the most important role in the operations of these systems, particularly concerning content conversion and energy control. The adoption of electric vehicles (EVs) and hybrid electric vehicles (HEVs) is increasing the pace to drive the power semiconductors market due to their need for EV powertrains and charging systems.

Furthermore, the rising deployment of automation and industrial robots to handle manufacturing operations is creating demand for power semiconductor devices for optimum and consistent performance. Such factors as favorable governmental policies and incentives for the semiconductor industry as well as for renewable energy sources are inspiring the market’s growth. Rising as a potential market because of the escalating that has been witnessed in investment in renewable energy and the growth of the automotive industry. Initiatives like ‘Make in India’ to increase the local content of semiconductor manufacturing are also made by the government. The semiconductor industry has been characterized by disruptions in the supply chain as far as the sources of raw materials and components are concerned. These materials, such as SiC and GaN, are costly to manufacture, thus putting a toll on the manufacturing cost of power semiconductor devices.

Definition of Asia-Pacific Power Semiconductor

Power semiconductors are electronic devices used to control and convert electricity in electric systems. They are essential in numerous processes in a wide array of applications that involve power conversion as well as control and conditioning of power.

Asia-Pacific Power Semiconductor Market Dynamics

Drivers: Rising demand for consumer electronics

Consumer electronics from Asia-Pacific are on the rise, evaluating the consumer electronics market due to the expansion of urbanization and increase in disposable income and technology enhancements. This growth is attributed to the high demand for mobile phones, laptops, tablets, home appliances, and others. Technology statistics forecast that in 2023 the Asia Pacific region is likely to have 1.7 billion smartphone users making up 45% of the global total as estimated by GSMA. COVID-19 has made smartphone adoption advance more rapidly, the two leading markets for smartphones are China, having over 950 million users by 2023 and India having more than 600 million users. Impact on Power Semiconductors: Consumer electronics need good power control to improve their functioning, recharge duration, and decrease heat formation. 
However, MOSFETs and PMICs that are power semiconductors are important in attaining these goals. For example, the power management applications in mobile phones employ power semiconductors to manage power that is crucial in the functionality and determine battery life and efficiency of the gadget. The advancement of new networks such as 5G is creating the demand for newer and more powerful smartphones and related devices thereby increasing the demand for powerful power semiconductor solutions. Rising trend of smart home devices, smart TVs, smart fridges, smart security systems, and other systems highly depend on power semiconductors for efficient performance.

Challenges: Supply chain disruptions

The Asia Pacific power semiconductor market changing as it grows and feels the impacts of supply chain disruptions. It reveals disruptions relating to production schedules, price levels, and the availability of semiconductor products. The COVID-19 pandemic has impacted value chains significantly, especially with regards to automotive semiconductor supply chains. In a related way, extended lockdowns, stay-at-home measures, and factory closures in essential production bases such as China, South Korea, and Taiwan caused disruptions in assembly and supply of semiconductors. There is disarray with the trade war mainly in between United States and China affecting the semiconductor supply chain. 

In recent, prudent measures such as restrictions on technology transfer, tariffs, and export controls have hampered the acquisition of requisite materials and components. This again is coupled with Taiwan’s geopolitical situation, as Taipei is home to one of the largest semiconductor industries worldwide. Since the supply chain is a sensitive element for any economy, any irregularity in the region would affect the supply chain. Semiconductor manufacturing depends on such materials of manufacturing as silicon, rare earths, and specialty chemicals. Lack of these materials for one or the other through supply constraints or increased demand by other industries have impacted on the layout capacity. They include metals, the global supply chain of which is exceptionally weak because some of these materials are sourced from a single country, more critically, China.

Scope of the Asia-Pacific Power Semiconductor Market

The study categorizes the Asia-Pacific power semiconductor market based on product type, voltage Range, application, material area, and end-user at the regional and global levels.

By Product Type Outlook (Sales, USD Million, 2019-2033)

• Diodes
• Transistors
• Thyristors
• Modules

By Application Outlook (Sales, USD Million, 2019-2033)

• Consumer Electronics
• Automotive
• Industrial
• Renewable Energy
• Telecommunications

By Material Outlook (Sales, USD Million, 2019-2033)

• Silicon
• Silicon Carbide (SiC)
• Gallium Nitride (GaN)

By End User Outlook (Sales, USD Million, 2019-2033)

• OEMs (Original Equipment Manufacturers)
• Aftermarket Service Providers
• Distributors

By Voltage Range Outlook (Sales, USD Million, 2019-2033)

• Low Voltage (up to 1kV)
• Medium Voltage (1kV - 2kV)
• High Voltage (above 2kV)

Consumer Electronics segment accounts for the largest market share by Application

Based on the application, consumer electronics is the biggest growth driver for power semiconductors in the Asia-Pacific region, reflecting major technological and economic trends in the area. Rollout of 5G networks across Asia-Pacific remains one of the most important drivers for the consumer electronics market. China, South Korea, and Japan are among the countries in the region which have substantially progressed their 5G infrastructure. Mass demand for next-generation smartphones and other connected devices is driven by the transition to 5G technology. Next-generation smartphones and other 5G-enabled products require more powerful semiconductor solutions that will be able to handle increased data speeds and efficiency and improved thermal management, and the adoption of smart home devices such as smart speakers and security systems, and connected appliances is increasing. Further, in smart homes, the power management depends extremely on the power semiconductors that should execute both operations of communication and integration of other smart systems.

The expansion of this sector naturally upsets the demand for semiconductor components. The market for wearable technology is growing aggressively and includes smartwatches and fitness trackers, among others. The need to make wearable technology compact, efficient, and yet execute on energy performance requires power management solutions of advanced standing. This thereby demands small, efficient, and multilevel power semiconductor devices. The growth of IoT is expanding the consumer electronics connective ecosystem. The devices are interacting with each other significantly, and there is a need for advanced power management and efficiency. 

North America accounted for the largest market share by Region.

According to the region the most important region of the Asia-Pacific power semiconductor market is the Northeast region, The Asia-Pacific power semiconductor market is considered to be one of the growing segments in the global semiconductor market. It addresses a wide spectrum of markets in terms of business philosophies and etiquettes, growth of industries, advanced technologies, and overall economic reform. Thus, China holds the greatest market share in power semiconductors in Asia-Pacific. It occupies a large market share; this is due to its large Electronics manufacturing companies and growing demand for them in many industries. China is one of the world’s largest manufacturers in the production of consumer electronics such as mobile phones, tablets, and home appliances. 
A huge demand for power semiconductors exists in these devices. Chinese investments in solar and wind power equipment are increasing the requirement for power semiconductor solutions for energy conversion and management. The country is investing a lot of money in EVs both the infrastructure and manufacturing, creating demand for power semiconductors used in Vehicle drive system and charging points. The market has faced problems such as disruption of supply chains, relations between countries over trade, and scarcity of raw materials for development; however, China has been trying hard to solve the problem by developing local resources and technology.

Competitive Landscape: Asia-Pacific Power Semiconductor Market

The Asia-Pacific power semiconductor market is a significant competitor and extremely cutthroat in the sector. It is using strategies including partnerships, product launches, acquisitions, agreements, and growth to enhance their positions in the market. Most sectors of businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.

Major players in the Asia-pacific power semiconductor market are:

• Infineon
• Vishay Intertechnology
• Renesas Electronics
• ON Semiconductor
• Texas Instruments
• Mitsubishi Electric Corporation
• Littelfuse
• Toshiba
• Fuji Electric
• Nexperia
• Semekron
• STMicroelectronics

Recent Development 

• In April 2024, Samsung Electronics began to expand its employment in the growth of power semiconductor development through its Device Solutions (DS) division. Growth, therefore, is largely because of the increasing power consumption driven by growth in the server semiconductor market, possible growth in markets of electric vehicles and PCs, and increased demand for chips related to this sector.
• In July 2023, NoMIS Power, an Albany-based power semiconductor company, secured a highly significant contract. For some years now, the business, created as a spinoff from SUNY Polytechnic Institute, actually has been trying to sell its product.