Semiconductor fabless market in Asia Pacific to drop 19%: IDC

IDC forecasts that the Asia Pacific region’s semiconductor fabless market will decline 19.1 percent in 2023.
Top Semiconductor Fabless companies in Asia PacificIn 2922, the semiconductor fabless market in the Asia Pacific region fell 6.5 percent to $78.5 billion.

The semiconductor fabless market in the Asia Pacific region will show stable and steady growth in 2024 as companies gradually shift products to applications including AI, high-performance computing, servers, data centers, automotive electronics, and industrial electronics to diversify operational risks.

The global semiconductor industry experienced a sharp decline in 2022 after seeing growth in 2020 and 2021.

Factors including the Ukraine-Russia war, Chinese lockdowns, high inflationary pressures, and demand fluctuations resulted in the Asia Pacific region’s semiconductor fabless market losing growth momentum in 2022 and an end to the trend of rising Integrated Circuit (IC) prices.

Demand for consumer electronics including smartphones, laptops, tablets, TVs, and monitors fell, while supply chain inventory levels increased. Short-term supply began exceeding demand, forcing companies to slow down the pace of expansion.

The annual growth rate of the top 10 companies in Asia Pacific was –5.1 percent, which was better than the overall market performance.

Taiwan leads with 73 percent market share. China and South Korea holds 22 percent and 5 percent market share respectively.

Among the top 10 semiconductor technology vendors are Taiwan’s MediaTek (23.5 percent), Realtek (4.8 percent), Novatek (4.7 percent), and Himax; China’s Willsemi (3.1 percent), Unisoc (2.6 percent), HiSilicon, GigaDevice, and Bitmain; and South Korea’s LX Semicon.

MediaTek has a market share of nearly 50 percent among the top 10 companies.