Electronic Chip Market

The global electronic chip market is projected to see continued growth in both volume and value over the next eight years. Despite a decline in consumption in 2022, the market has shown resilience over the past decade with an average annual increase in consumption. China leads in both consumption and production of electronic chips, followed by South Korea and Singapore. The market is driven by increasing demand for electronic chips worldwide, with significant fluctuations in both consumption and production recorded over the analyzed period. Imports and exports of electronic chips have also shown prominent growth, with various product types contributing to the overall market dynamics.

Market Forecast

Driven by increasing demand for electronic chips worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +2.8% for the period from 2022 to 2030, which is projected to bring the market volume to 671B units by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +5.2% for the period from 2022 to 2030, which is projected to bring the market value to $1,328.1B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Electronic Chips

In 2022, after three years of growth, there was significant decline in consumption of electronic chips, when its volume decreased by -7.8% to 536B units. In general, consumption, however, continues to indicate a resilient increase. Global consumption peaked at 582B units in 2021, and then contracted in the following year.

The global electronic chip market revenue fell modestly to $888.3B in 2022, waning by -4.2% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, the total consumption indicated a remarkable increase from 2012 to 2022: its value increased at an average annual rate of +5.4% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption increased by +15.3% against 2019 indices. Global consumption peaked at $938.6B in 2017; however, from 2018 to 2022, consumption stood at a somewhat lower figure.

Consumption By Country

The country with the largest volume of electronic chip consumption was China (265B units), accounting for 49% of total volume. Moreover, electronic chip consumption in China exceeded the figures recorded by the second-largest consumer, South Korea (54B units), fivefold. The third position in this ranking was held by Singapore (40B units), with a 7.5% share.

From 2012 to 2022, the average annual growth rate of volume in China amounted to +12.0%. The remaining consuming countries recorded the following average annual rates of consumption growth: South Korea (+2.8% per year) and Singapore (+3.8% per year).

In value terms, China ($206.3B) led the market, alone. The second position in the ranking was taken by South Korea ($62.5B). It was followed by Germany.

From 2012 to 2022, the average annual growth rate of value in China amounted to +11.3%. In the other countries, the average annual rates were as follows: South Korea (+4.2% per year) and Germany (+20.5% per year).

In 2022, the highest levels of electronic chip per capita consumption was registered in Singapore (6,955 units per person), followed by South Korea (1,036 units per person), Mexico (197 units per person) and China (187 units per person), while the world average per capita consumption of electronic chip was estimated at 68 units per person.

From 2012 to 2022, the average annual rate of growth in terms of the electronic chip per capita consumption in Singapore totaled +2.9%. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: South Korea (+2.5% per year) and Mexico (+10.2% per year).

Production

World Production of Electronic Chips

In 2022, global production of electronic chips skyrocketed to 629B units, surging by 27% compared with 2021 figures. Overall, the total production indicated a strong increase from 2012 to 2022: its volume increased at an average annual rate of +7.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production increased by +39.6% against 2019 indices. The growth pace was the most rapid in 2017 with an increase of 58%. Over the period under review, global production reached the maximum volume in 2022 and is expected to retain growth in years to come.

In value terms, electronic chip production declined to $791B in 2022 estimated in export price. Over the period under review, the total production indicated a measured increase from 2012 to 2022: its value increased at an average annual rate of +4.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production increased by +8.9% against 2019 indices. The growth pace was the most rapid in 2014 with an increase of 32% against the previous year. Over the period under review, global production hit record highs at $912.4B in 2017; however, from 2018 to 2022, production stood at a somewhat lower figure.

Production By Country

The countries with the highest volumes of production in 2022 were Singapore (176B units), Taiwan (Chinese) (161B units) and South Korea (88B units), together accounting for 68% of global production.

From 2012 to 2022, the biggest increases were recorded for Singapore (with a CAGR of +19.5%), while production for the other global leaders experienced more modest paces of growth.

Imports

World Imports of Electronic Chips

After ten years of growth, supplies from abroad of electronic chips decreased by -7.6% to 1,282B units in 2022. In general, imports, however, saw a strong expansion. The pace of growth appeared the most rapid in 2020 with an increase of 24% against the previous year. Global imports peaked at 1,388B units in 2021, and then declined in the following year.

In value terms, electronic chip imports reached $1,176B in 2022. Over the period under review, imports, however, showed prominent growth. The most prominent rate of growth was recorded in 2021 when imports increased by 26%. Global imports peaked in 2022 and are likely to see steady growth in years to come.

Imports By Country

China represented the main importing country with an import of around 538B units, which recorded 42% of total imports. Hong Kong SAR (291B units) ranks second in terms of the total imports with a 23% share, followed by Singapore (12%). Taiwan (Chinese) (47B units), Malaysia (35B units), Mexico (34B units), South Korea (34B units) and Japan (26B units) took a little share of total imports.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the key importing countries, was attained by China (with a CAGR of +10.2%), while imports for the other global leaders experienced more modest paces of growth.

In value terms, China ($415.6B), Hong Kong SAR ($219.3B) and Singapore ($104.4B) appeared to be the countries with the highest levels of imports in 2022, with a combined 63% share of global imports.

Hong Kong SAR, with a CAGR of +12.2%, saw the highest growth rate of the value of imports, among the main importing countries over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Imports By Type

Electronic integrated circuits; n.e.c. in heading no. 8542 was the major imported product with an import of about 834B units, which amounted to 64% of total imports. Electronic integrated circuits; processors and controllers, whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits (290B units) held a 22% share (based on physical terms) of total imports, which put it in second place, followed by multichip integrated circuits: memories (8.2%) and electronic integrated circuits (5.4%).

Electronic integrated circuits; n.e.c. in heading no. 8542 was also the fastest-growing in terms of imports, with a CAGR of +10.5% from 2012 to 2022. At the same time, electronic integrated circuits (+8.4%), electronic integrated circuits; processors and controllers, whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits (+7.5%) and multichip integrated circuits: memories (+4.9%) displayed positive paces of growth. While the share of electronic integrated circuits; n.e.c. in heading no. 8542 (+7.9 p.p.) increased significantly in terms of the global imports from 2012-2022, the share of electronic integrated circuits; processors and controllers, whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits (-3.5 p.p.) and multichip integrated circuits: memories (-4 p.p.) displayed negative dynamics. The shares of the other products remained relatively stable throughout the analyzed period.

In value terms, the largest types of imported electronic chips were electronic integrated circuits; processors and controllers, whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits ($525.4B), electronic integrated circuits; n.e.c. in heading no. 8542 ($377.6B) and multichip integrated circuits: memories ($240.8B), with a combined 97% share of global imports.

Multichip integrated circuits: memories, with a CAGR of +11.2%, recorded the highest growth rate of the value of imports, in terms of the main imported products over the period under review, while purchases for the other products experienced more modest paces of growth.

Import Prices By Type

The average electronic chip import price stood at $0.9 per unit in 2022, surging by 9.6% against the previous year. Overall, the import price showed a relatively flat trend pattern. The pace of growth appeared the most rapid in 2017 when the average import price increased by 13% against the previous year. Over the period under review, average import prices attained the maximum in 2022 and is likely to see gradual growth in years to come.

Prices varied noticeably by the product type; the product with the highest price was multichip integrated circuits: memories ($2.2 per unit), while the price for electronic integrated circuits; n.e.c. in heading no. 8542 ($0.5 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by memories (+6.0%), while the other products experienced more modest paces of growth.

Import Prices By Country

In 2022, the average electronic chip import price amounted to $0.9 per unit, surging by 9.6% against the previous year. Overall, the import price continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2017 when the average import price increased by 13%. Over the period under review, average import prices attained the peak figure in 2022 and is likely to see steady growth in the immediate term.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Taiwan (Chinese) ($1.3 per unit), while Singapore ($0.7 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Taiwan (Chinese) (+4.5%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Electronic Chips

In 2022, global exports of electronic chips rose markedly to 1,375B units, picking up by 5.6% on 2021 figures. Overall, exports posted a buoyant increase. The pace of growth was the most pronounced in 2017 with an increase of 37%. Over the period under review, the global exports reached the peak figure in 2022 and are likely to see gradual growth in the near future.

In value terms, electronic chip exports rose markedly to $1,215.5B in 2022. In general, exports continue to indicate a strong increase. The pace of growth appeared the most rapid in 2021 when exports increased by 27%. The global exports peaked in 2022 and are likely to see gradual growth in the near future.

Exports By Country

In 2022, Hong Kong SAR (303B units), Singapore (292B units), China (273B units) and Taiwan (Chinese) (209B units) represented the largest exporter of electronic chips in the world, generating 78% of total export. Japan (79B units) took a 5.7% share (based on physical terms) of total exports, which put it in second place, followed by South Korea (5%). Malaysia (58B units) followed a long way behind the leaders.

From 2012 to 2022, the biggest increases were recorded for Singapore (with a CAGR of +12.2%), while shipments for the other global leaders experienced more modest paces of growth.

In value terms, the largest electronic chip supplying countries worldwide were Taiwan (Chinese) ($327.3B), Hong Kong SAR ($210.8B) and China ($153.9B), together accounting for 57% of global exports.

Hong Kong SAR, with a CAGR of +13.8%, recorded the highest growth rate of the value of exports, in terms of the main exporting countries over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Exports By Type

In 2022, electronic integrated circuits; n.e.c. in heading no. 8542 (859B units) was the major type of electronic chips, mixing up 64% of total exports. It was distantly followed by electronic integrated circuits; processors and controllers, whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits (330B units) and multichip integrated circuits: memories (100B units), together creating a 32% share of total exports. Electronic integrated circuits (53B units) took a minor share of total exports.

Electronic integrated circuits; n.e.c. in heading no. 8542 was also the fastest-growing in terms of exports, with a CAGR of +10.4% from 2012 to 2022. At the same time, electronic integrated circuits (+6.6%), electronic integrated circuits; processors and controllers, whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits (+6.4%) and multichip integrated circuits: memories (+5.5%) displayed positive paces of growth. From 2012 to 2022, the share of electronic integrated circuits; n.e.c. in heading no. 8542 increased by +9.3 percentage points. The shares of the other products remained relatively stable throughout the analyzed period.

In value terms, electronic integrated circuits; processors and controllers, whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits ($552.4B), electronic integrated circuits; n.e.c. in heading no. 8542 ($386.8B) and multichip integrated circuits: memories ($244.7B) appeared to be the products with the highest levels of exports in 2022, with a combined 97% share of global exports.

Among the main exported products, multichip integrated circuits: memories, with a CAGR of +12.6%, saw the highest rates of growth with regard to the value of exports, over the period under review, while shipments for the other products experienced more modest paces of growth.

Export Prices By Type

In 2022, the average electronic chip export price amounted to $0.9 per unit, approximately reflecting the previous year. Over the period from 2012 to 2022, it increased at an average annual rate of +1.3%. The growth pace was the most rapid in 2021 when the average export price increased by 20% against the previous year. As a result, the export price attained the peak level of $0.9 per unit, leveling off in the following year.

Prices varied noticeably by the product type; the product with the highest price was multichip integrated circuits: memories ($2.5 per unit), while the average price for exports of electronic integrated circuits; n.e.c. in heading no. 8542 ($0.5 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by memories (+6.7%), while the other products experienced more modest paces of growth.

Export Prices By Country

The average electronic chip export price stood at $0.9 per unit in 2022, approximately equating the previous year. Over the period from 2012 to 2022, it increased at an average annual rate of +1.3%. The most prominent rate of growth was recorded in 2021 an increase of 20%. As a result, the export price reached the peak level of $0.9 per unit, leveling off in the following year.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was South Korea ($1.7 per unit), while Japan ($0.4 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Taiwan (Chinese) (+4.9%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform