The market for electronic components - Italy

Since 2020, the market for electronic components has faced significant fluctuations due to the COVID-19 pandemic, with the global market growing by 6.2% in 2021 after a modest 3.3% growth in 2020. The Asia-Pacific region, particularly China, remains the dominant production force, accounting for more than 70% of global electronics exports as of 2019. The Italian market, despite experiencing a decline in 2020 with a 10% revenue drop in about 65% of companies, saw a robust recovery in 2021 with an aggregate turnover of electronic components exceeding 5.6 billion euros, marking a 15.9% increase. The pandemic-induced work-from-home shift spurred demand for hardware, contributing to a global shortage of semiconductors that severely impacted the automotive industry and other sectors relying on microchips. Key growth drivers include innovative areas such as electric vehicles, IoT, 5G infrastructure, and the medical sector. For instance, the European electric car market experienced a CAGR of 47.4% from 2013 to 2020, and Italy's IoT market was valued at €7 billion in 2021, up 20% from 2020. Despite production constraints, electronic component manufacturers are seeking innovative and sustainable solutions to meet increasing demand and environmental challenges..### Trends in the Electronics Components Market in a Nutshell The electronics components market in Italy and across the globe has been experiencing significant trends that are shaping its demand and supply. Within Italy, the industry contributes to 3.4 percent of the national GDP, highlighting its importance in the country's economy. After a challenging period due to the pandemic in 2020, the industry is on an uptick with a projection of substantial growth in the coming years. A remarkable increase in revenue of between 15 and 16 percent has marked a period of recovery for the Italian electronic components sector. This indicates a resurgence in various industries that had been heavily affected by the pandemic. A prime example is the automotive industry, particularly the electric vehicles segment that has seen exponential growth. Forecasts show that this sector could account for nearly 38 percent of Italy's total vehicle production, a significant leap from just 0.1 percent in 2019. The medical, industrial, and telecommunications fields are other key sectors that have contributed to the increased demand for electronic components. The medical sector, for instance, has experienced a surge in demand specifically for sensors and microcontrollers due to the health crisis. The growth in telecommunication is propelled by advancements in 5G technology, and the industrial sector is benefiting from an increasing rise in automation and smart technology. The global market for electronic components is also experiencing a considerable boost. A growth rate of over 6 percent was reported in the world market in 2021, reflecting not only the recovery from pandemic lows but also the acceleration in demand for active components due to the rising utilization of cloud services and telecommuting. Innovation is a notable trend within this market as the demand for microchips and other components skyrockets. Sustainability is also becoming a critical consideration, given the industry's profound environmental impact in terms of energy usage and waste production. The move towards greener technologies and practices is expected to become even more prevalent in the years to come. The Italian electronic components market, which commands a significant position within Europe, being only behind giants like Germany and France, indicates a robust and growing landscape. Although there has been a reduction in the number of active companies over the years, with a decrease of about 20 percent, the sector still employs tens of thousands of people and remains fragmented with a blend of small, medium, and large enterprises. The pricing of electronic components is subject to wide fluctuations due to factors like innovation, supply constraints, and changing raw material costs. This further establishes the market as dynamic, where manufacturers must.### Key Players Shaping the Electronic Components Market Landscape #### Taiwan Semiconductor Manufacturing Company (TSMC) As the world's preeminent leader in semiconductor manufacturing, **TSMC** sets the bar high with its extensive portfolio and cutting-edge technology. With a significant portion of the global production share, this Taiwanese giant produces over half of the world's semiconductors. Pioneers in advanced integrated circuit manufacturing, they cater to the burgeoning demands of global tech behemoths, propelling crucial sectors forward, particularly in the realms of high-performance computing and mobile devices. #### Samsung Electronics **Samsung Electronics** stands as a South Korean colossus that has fortified its position as a key player in electronic component manufacturing. Besides being a consumer electronics powerhouse, Samsung shines in the semiconductor domain, primarily through its production of memory chips and its burgeoning presence in system semiconductors. Their comprehensive expertise across various electronic segments makes them a critical supplier to a multitude of industries, including automotive and mobile technology. #### United Microelectronics Corporation (UMC) **UMC** might not be as massive as its Taiwanese counterpart TSMC, but it is another indispensable entity originating from the semiconductor stronghold of Taiwan. Specializing as a contract chip manufacturer, UMC has a notable share in the global semiconductor production, making substantive contributions particularly in areas requiring specific production capabilities. #### Semiconductor Manufacturing International Corporation (SMIC) As China's semiconductor frontrunner, **SMIC** operates at the vanguard of the nation's ambitious plans to secure a stronger foothold in the global electronic components market. Their expertise in semiconductor production, ranging from design and prototyping to large-scale manufacturing, offers a pivotal foundation for China's growing electronic industry. #### LG Electronics Although **LG Electronics** is widely recognized for its consumer electronics, it also has an influential presence in the electronic components sector. LG supplies an assorted range of electronic modules and components, including display and battery technologies, that are critical for various consumer and industrial products. #### MEMC Electronic Materials **MEMC**, with its specialization in silicon wafer manufacturing, feeds into the crucial early stages of the electronic component supply chain. Their high-grade silicon wafers are a fundamental element for semiconductor devices, and by supplying these to various manufacturers, MEMC plays a pivotal role in the global electronics ecosystem. #### LFoundry **LFoundry** is an Italian beacon in the semiconductor landscape, offering specialty foundry services that cater to the analog, mixed-signal, and specialized markets. Their agile manufacturing processes and

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• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 19/11/2021

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