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Summary of our market study
French semiconductor market estimated at over €7 billion
The global semiconductor market, after fluctuations due to COVID-19 and geopolitical tensions between the USA and China, continues to grow. This growth is driven by digitization, the transition to 5G, vehicle electrification and artificial intelligence.
The market has reached $580 billion by 2022. Strategy Analytics, which forecasts that the automotive chip market alone will reach $105 billion in 2028.
The telephony segment, estimated at between $40 and $50 billion, is expected to grow by around 7-8% until 2026.
The market is extremely cyclical.
Semiconductor demand trends in France
In France, demand from the automotive industry is strong. The automotive and industrial sectors account for 69% of sales.
The European Union has introduced controls to guard against dual-use exports that could be used for military purposes, and has launched the European Chips Act to support production and guarantee technological sovereignty through a major investment plan worth 43 billion euros.
Main players in the semiconductor sector
- Intel
- Samsung Electronics and SK Hynix, from South Korea
- TSMC, a Taiwanese company and the world's leading semiconductor manufacturer
- Qualcomm, Broadcom and Nvidia
- STMicroelectronics a Franco-Italian company
- murata the Japanese company specializing in passive electronic components
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Summary and extracts
1 Market overview
1.1 Presentation
A semiconductor is a material with the electrical characteristics of an insulator, but for which an electron can contribute to an electric current. It therefore has an electrical conductivity intermediate between that of metals and that of insulators. The semiconductor market is the market for products made from this type of material. Semiconductors are partly used in electronics to manufacture components such as diodes, transistors, integrated circuits which are then used in telephones, cars, computers...
The players in the semiconductor market are mainly international players and the three largest semiconductor vendors are Intel (US), Samsung (South Korea) and SK Hynix (South Korea) with respective revenue of $19.7 billion, $16.8 billion and $7.5 billion in Q1 2021. However, market players such as Intel saw a revenue decline of 4% from the last quarter of 2020. In its report, Intel explains this decline as a result of limited semiconductor supply in the market. This can also be explained by the current geopolitical context and the U.S. "war" against Huawei, which is destabilizing the semiconductor market, including the fact that the U.S. has banned Huawei from using U.S. machines to manufacture its semiconductors.
However, despite the backdrop, the global semiconductor market remains attractive as global shipments in the first quarter of 2021 were $123.1 billion, up 3.6% from the first quarter of 2020, making it the highest increase for a first quarter since 2010. The growth of the semiconductor market is expected to continue in the coming years, as due to the global pandemic, industries are experiencing a shortage of semiconductors.
While the French semiconductor market saw some semblance of recovery in Q4 2020, we are still far from its pre-pandemic highs. Indeed, in Q2 2020, the market fell and then recovered by 7% in value in Q3 2020, reaching in Q4 a 13% growth in value, which however remains a contraction of 8% compared to Q4 2019. In fine, the semiconductor market in France seems to follow the course of the global market.
List of charts presented in this market study
- World semiconductor market
- Evolution of the turnover (excl. VAT) of the electronic components manufacturing
- Evolution of the share of semiconductor production by region
- Semiconductor manufacturers' R&D spending trends
- Breakdown of worldwide sales by product type
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Latest news
Samsung launches a real-time translation tool on a future smartphone - 13/11/2023
- Technology giant Samsung Electronics plans to roll out an artificial intelligence-based real-time translation tool for a new smartphone in 2024.
- The feature will be available on the next Samsung Galaxy, due for release in early 2024.
- The translation process will take at least three to four seconds, during which the AI will understand the original content, translate it into another language and verbalize it to the listener.
- Samsung is also developing its own generative AI model called Samsung Gauss, capable of producing language, code and images.
- Samsung Gauss will be integrated into a wide range of Samsung products in the near future, although specific details have not been provided.
- Samsung is the world's biggest smartphone producer, accounting for a fifth of total market sales between July and September, ahead of Apple (16%), according to specialist Counterpoint.
Siemens Energy and Air Liquide inaugurate their gigafactory to get green hydrogen off the ground - 09/11/2023
- Siemens Energy and Air Liquide's electrolyser Gigafactory in Berlin.
- It will produce cells with a total capacity of 1GW in the first year, gradually increasing to 3GW.
- Investment of 30 million euros
- it will power the hydrogen projects of Siemens Energy and Air Liquide, its only two customers.
- In Germany, Air Liquide will commission a 20 MW plant in the Ruhr, currently the largest in Europe.
- Another electrolyzer, ten times larger (200 MW), is planned: "Normand'Hy".
- It will supply green hydrogen to manufacturers in the Seine Valley. TotalEnergies has already reserved half the capacity.
- Air Liquide plans to have a portfolio of 3 GW by 2030.
- Air Liquide currently produces 1.2 million tonnes of hydrogen a year worldwide, but the overwhelming majority is still of fossil origin.
- "By 2030, grey hydrogen may account for only 50% of our business,
- The group plans to triple its sales by 2035, to 6 billion euros, taking advantage of the growth in low-carbon hydrogen.
- Germany sees hydrogen as one of the main vectors for decarbonization.
- Hydrogen infrastructure plan in the coming weeks - a 10,000-kilometer network
Semiconductors: Grenoble-based UpMem strengthens its position - 13/10/2023
- UpMem founded: 2015, based in Grenoble, France
- Sector: Big Data
- Recent fundraising: €6.6 million
- Current workforce: 23 people. Planned increase to 40 next year
- Data server market: $80 billion worldwide
- acceleration processor sector: $15 billion
- The company's current circuits are 10 to 15 times faster and can replace ten servers
- Second-generation products expected to consume 40% less energy
- Current sales: around one million euros
- Target: 30 million euros within three years.
IT: Icape strengthens its position in the United States - 07/10/2023
- Icape recently acquired the operating assets of three American companies: PCB Solutions, Ustek Incorporated and Nujay Technologies.
- These companies have combined annual sales of over $5 million.
- Icape has a global platform of 36 subsidiaries, with sales of 220 million euros in 2022.
- It employs over 500 people.
- The market in which Icape operates has seen a decline in activity of around 20%.
- Icape has acquisition plans in Europe and aims to buy 120 million euros in sales over the next four years.
Chip investments in Europe reach 100 billion euros - 11/08/2023
- The European Union aims to double semiconductor production by 2030 to 20% of the global share.
- Over 100 billion euros of investment is planned in semiconductor production in Europe.
- The "Chips Act" was passed with an initial allocation of 43 billion in subsidies.
- TSMC plans to invest up to 10 billion euros in its first European plant in Germany.
- Intel plans to invest 30 billion euros in Germany, 4.6 billion in Poland and 12 billion in Ireland.
- In France, STMicrelectronics and GlobalFoundaries are investing 7.5 billion euros in a project at Crolles.
- Infineon plans to invest 5 billion euros in a plant in Dresden.
- Broadcom plans to build a site in Spain at a cost of one billion euros.
- The PIIEC, which brings together 20 European countries and 56 companies, accounts for 22 billion euros of investment.
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