Market Overview:

The Global Computer Microchips Market Was Valued At USD 23.44 Billion In 2022 And Is Projected To Reach USD 52.49 Billion By 2030, Growing At A CAGR Of 10.6% From 2022 To 2030.

A microchip (also known as a chip, a computer chip, an integrated circuit or IC) is a collection of electronic circuits embedded on a small, flat piece of silicon. Silicon is the preferred material in the semiconductor industry. Microchip technology is one of the most important and pervasive technologies utilized in modern electronic devices. In contrast to the metals typically used to conduct electrical currents, silicon is a'semiconductor,' meaning its conductivity can be enhanced by combining it with other substances such as phosphorus or boron. This allows an electrical current to be turned on or off. A computer microchip contains millions of transistors that function as an on/off switch, a resistor that regulates the flow of electricity between the transistors, a capacitor that stores and releases electricity, and a diode that stops the flow of electricity. Microchips reduce the size of computers by eliminating the need to separate components.

A computer microchip is a closed unit containing computer circuits that can be used in electronic devices for logic or memory-related functions. The market expansion can be attributed to elements such as rising demand and ongoing product innovations. However, the high cost of constructing manufacturing facilities may continue to present difficulties for the industry. Over the next seven years, the increasing use of microchips in smartphones is also expected to drive demand for computer microchips. Utilizing microprocessors, contemporary devices such as smart TVs and health monitors may have a positive effect on economic growth.

COVID-19 Impact:

Due to the occurrence of lockdowns in numerous countries around the world, the COVID-19 outbreak has had a negative impact on the expansion of the global market for computer microchips. Multiple manufacturing facilities, including those for computer microchips and other electronic products, were forced to close as a result of lockdowns, which negatively impacted the market's growth.

In addition, the shortage of labor and essential raw materials caused by the ban on imports and exports exacerbated the market's decline. The government imposed these restrictions to prevent the spread of the virus during the pandemic. However, the market is anticipated to recover quickly.

Market Dynamics:

Driving Factors:

• Rising Demand for Computing Power

The global market for computer microchips is expanding rapidly. This is due to a number of factors, including the rising demand for computing power, the declining cost of microchips, and the growing number of microchip applications. Internet of Things (IoT), artificial intelligence (AI), and big data are driving an increase in the demand for computing power. These technologies require increasingly powerful computers to operate, and microchips are an integral part of these computers. Due to advances in manufacturing technology, the price of microchips is falling. In the past two decades, the cost of manufacturing a microchip has decreased by approximately 90 percent, making them more affordable for a wider variety of applications.

• Growing Number of Microchip Applications

Likewise, the number of applications for microchips is growing. They are used in a growing variety of devices, including smartphones, tablets, automobiles, and industrial machinery. This is driving demand for increasingly sophisticated and powerful microchips. The global market for computer microchips is thus driven by a number of factors. These include the increasing demand for computing power, the declining price of microchips, and the growing number of microchip applications.

Restraints/Challenges:

• Declining Demand for Personal Computer

The global market for computer microchips is anticipated to expand at a 7.2% CAGR between 2020 and 2025. However, it is anticipated that the market will face certain obstacles that may impede its growth. The declining demand for personal computers is one of the major restraints on the expansion of the global computer microchip market. In recent years, there has been a decline in the demand for personal computers, as people prefer smartphones and tablets that are more portable and easier to use. This has resulted in a decline in demand for microchips used in personal computers.

• Increasing Competition from Alternative Technologies

Increasing competition from alternative technologies is another factor restraining the growth of the global computer microchip market. There are a variety of substitute technologies on the market that are used in place of microchips. ASICs and FPGAs are examples of these technologies (FPGAs). These technologies offer greater efficiency and performance than microchips. This is anticipated to reduce the demand for microchips, thereby restraining the market's growth.

• High Cost of Research and Development:

The high cost of research and development is also expected to restrain the global computer microchip market. Developing new microchips is a costly endeavor that requires substantial investment. This is anticipated to discourage new players from entering the market and restrain market expansion. The global market for computer microchips is anticipated to be restrained by the presence of counterfeit products. There are a number of counterfeit products on the market that are being sold at a discount. This is anticipated to reduce the demand for authentic microchips and restrain market expansion.

Opportunities:

• Consumer Electronics:

The market for consumer electronics is one of the most significant drivers of the semiconductor industry. This market consists of electronic devices including smartphones, tablets, laptops, and wearables. The ever-evolving and fluctuating nature of this market's requirements keeps the semiconductor industry on its toes.

• Automotive

The automotive industry is an additional significant market for semiconductors. This market consists of automobiles, trucks, and buses. The semiconductor industry offers a vast array of products for this market, including sensors, microcontrollers, and power management integrated circuits.

Internet of Things:

Internet of Things (IoT) is a rapidly expanding market that will have a significant impact on the semiconductor industry. The IoT is a network of internet-connected physical devices, vehicles, home appliances, and other objects. These devices contain sensors and other electronic components that enable them to collect and exchange data.

• 5G Connectivity

5G is the next generation of wireless technology that is anticipated to have a significant impact on the semiconductor market. 5G is a wireless technology that provides faster speeds, reduced latency, and increased capacity compared to previous generations. This will enable a new class of applications and services that require high bandwidth and real-time data.

Strategic Development:

• In January 2020 - Intel expanded the 11th generation of its "Core" processor chip architecture by adding new chips for more powerful (and bulkier) gaming laptops and desktops, replacing last year's chips for thin laptops. New desktop Core S-series processors are 14% faster than Intel's previous best gaming processors.
• In 2019 - Qualcomm, the foremost manufacturer of mobile chips for smartphones, has unveiled its most recent processor designs. A modernized under-glass fingerprint sensor that can unlock a phone with a simple touch to the display. The second-generation 3D Sonic Sensor unlocks 50% faster than Qualcomm's first-generation technology from
• Volvo, best known for its safety innovations, intends to use Nvidia's Orin to propel itself to the forefront of self-driving technology by releasing the third generation XC90. The proprietary Orin chip from Nvidia is essentially a type of central nervous system for automobiles, as it combines 17 billion transistors across multiple processing cores. It was created to process the massive amounts of data generated by autonomous vehicles, which navigate by continuously analyzing their surroundings.
• Beginning in 2022, the next generation of Volvo's XC90 flagship crossover will be equipped with Orin. In the year 2020, Nvidia will unveil the Nvidia A100 artificial intelligence chip, the most advanced tool for advancing AI. The chip has 5 petaflops of performance, which is roughly 20 times more than the previous-generation chip Volta.

Key Vendors:

The top market players in global Computer Microchip Market are

• Samsung

Samsung Electronics is a global leader in technology, opening new possibilities for people everywhere. Through relentless innovation and discovery, we are transforming the worlds of TVs, smartphones, wearable devices, tablets, digital appliances, network systems, medical devices, semiconductors and LED solutions. Samsung is also leading in the Internet of Things space through, among others, our Smart Home and Digital Health initiatives.

• Intel

Intel's mission is to shape the future of technology in order to improve the future of the entire planet. Intel's efforts in fields such as artificial intelligence, analytics, and cloud-to-edge technology lie at the heart of countless innovations. From major innovations such as self-driving cars and the restoration of coral reefs to everyday enhancements such as blockbuster effects and enhanced shopping experiences, everything is powered by Intel technology.

• Broadcom

Broadcom Inc. (NASDAQ: AVGO) is a global leader in semiconductor and infrastructure software design, development, and distribution. Broadcom Inc. (Broadcom) is a technology company that designs, develops, and distributes various semiconductor and infrastructure software solutions. The company's product line consists of data center, networking, broadband, enterprise software, wireless, storage, and industrial products.

• Qualcomm

QUALCOMM, Inc. develops, designs, and offers digital telecommunications products and services. Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives are its operating segments (QSI).

• TSMC

TSMC is the first semiconductor foundry in the world. As the founder and market leader of the Dedicated IC Foundry segment, TSMC has built its reputation by providing advanced "More-than-Moore" wafer production processes and unmatched manufacturing efficiency. Since its inception, TSMC has consistently provided the most advanced technologies and design services in the foundry industry.

• Micron Technology Inc

Ron is a global leader in developing innovative memory solutions that revolutionize how the world utilizes information. Micron Technology, Inc. manufactures and markets dynamic random access memory (DRAM) chips, static random access memory (SRAM) chips, flash memory, semiconductor components, and memory modules through its subsidiaries.

• Celera

Celera develops and commercializes diagnostic tests that help physicians and patients manage disease progression by identifying disease risk. The Products business develops and manufactures molecular diagnostic products that are used to detect, characterize, monitor, and select treatment for disease, whereas our Services business, Berkeley HeartLab, Inc. (BHL), offers numerous diagnostic tests to identify and characterize cardiovascular disease risk and assist physicians in recommending treatment.

• NUVIA

Qualcomm Technologies, Inc. has successfully acquired NUVIA. The acquisition enhances Qualcomm's leading technology road map to redefine computing performance in the 5G era. The company's primary objective is to develop products that combine the best characteristics of compute performance, power efficiency, and scalability.

• Infineon

Infineon Technologies focuses on the three central challenges facing contemporary society: Energy Efficiency, Mobility, and Security, and provides semiconductors and system solutions for automotive and industrial electronics, chip card, and security applications. The products of Infineon are distinguished by their dependability, quality, and innovative and cutting-edge technology in analog and mixed signal, RF and power, as well as embedded control.

• Texas Instruments Inc

Texas Instruments Incorporated is a designer and manufacturer of semiconductors. The business manufactures analog ICs and embedded processors. Texas Instruments serves clients globally.

Segmentation Analysis:

The global computer microchip market is segmented on the basis of product type, end user and region.

By Product Outlook:

The computer microchip market has been segmented by product type into integrated device, fabless, and foundry. The architecture and design of computer microchips frequently correspond to Moore's law, which states that the number of transistors doubles every two years. This presents an opportunity for integrated device manufacturers to develop new products to meet the increasing demand for microchips in their respective applications.

• Integrated Device
• Fabless
• Foundry

By Application Outlook:

The market for computer microchips has been segmented based on the basis of application into consumer electronics, automotive, healthcare, military & civil aerospace, and other applications. High demand for computer microchips in medical devices, wearable devices, and bodily implants is anticipated to drive market expansion. Increased demand for microchips in autonomous vehicles is anticipated to contribute to the expansion of the computer chip market.

• Consumer Electronics
• Automotive
• Healthcare
• Military and Civil Aerospace
• Others

Regional Insights:

Geographically, the global Computer Microchips market has been broken down into several regions, including North America, Latin America, the Middle East, Asia-Pacific, Africa, Europe, and India. In the near future, the global Computer Microchips region will dominate this market.

Asia-Pacific, which includes China, India, South Korea, Australia, and other emerging economies, captured a significant share of the market in 2017, followed by North America and Europe. Due to the emergence of new economies, Asia-Pacific had the highest growth rate over the forecast period. China's low cost of raw materials and massive production facilities represent a tremendous opportunity for microchips. As a result of its early technological advancement and high capital expenditure, the U.S. is expected to experience high market growth over the forecast period.

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe
• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Scope of Report:

Conclusion:

• This report provides a quantitative analysis of the market segments, current trends, estimates, and dynamics of the computer microchips market from 2021 to 2031 in order to identify the current computer microchips market opportunity.
• The market research includes information regarding the market's key drivers, restraints, and opportunities.
• The contribution of each region's major countries to the global market's revenue is mapped.
• A comprehensive analysis of the market outlook for computer microchips assists in identifying the prevalent market opportunities.