Summary of our market study

The global semiconductor market has demonstrated robust performance, remaining stable with a value of $599.6 billion in 2022, showing minimal growth from the previous year and facing an anticipated 11.2% decline in 2023 due to weak electronics demand. However, forecasts predict significant growth, with an expectation to reach $1.380 trillion by 2029. This future growth is likely to be fueled by dynamic sectors such as automotive and industrial, amongst others. The US market share in semiconductors is expected to decline while China's share increases due to strategic maneuvers involving production incentives and export restrictions.

The Italian semiconductor market contributes 3.3% to the European market, with a notable focus on the automotive sector, which accounts for 40% of semiconductors sales, highlighting the industry’s strategic importance. The Italian sector reached a production value of 1.6 billion euros in 2022 and demonstrated resilience with strong revenue growth, particularly from larger companies and those in industrial and automotive sectors. Notwithstanding, the ongoing Russian-Ukrainian conflict further exasperated the existing semiconductor material shortage, affecting critical resources like neon and palladium. This crisis also impacted the Italian market, leading to increased producer prices within the electronic components and boards manufacturing sector from March 2022 to August 2023.

Emerging Trends Shaping the Semiconductor Market in Italy

The Italian semiconductor market is undergoing significant changes driven by various emerging trends. One of the key factors influencing demand within the market is the advancement of next-generation technologies, such as the Internet of Things (IoT), Artificial Intelligence (AI), and the implementation of 5G and predicted 6G networks. These cutting-edge technologies are highly dependent on semiconductors for their operation, indicating a surge in demand for such materials in the near future. The shift towards eco-friendly transportation is another trend affecting the market, with an increase in the adoption of electric vehicles (EVs) bolstering the demand for semiconductors. Electric cars require approximately twice the total value of semiconductor materials compared to traditional combustion vehicles, emphasizing this industry's growing importance in semiconductor consumption. In response to these demands, Europe has allocated substantial funds for research and innovation in the semiconductor sector, with a total of 95.5 billion euros earmarked in the Horizon 21-27 program and an additional 15.3 billion euros for digital and space industries. Tax incentives are also in place for markets purchasing advanced tech products, supporting the demand for semiconductor-equipped devices. Despite these positive forecasts, the semiconductor industry is not without its challenges.

The Covid-19 pandemic has had a two-fold impact on the market. Initially, semiconductor manufacturers reduced their production forecasts due to uncertainties. However, the pandemic subsequently led to a spike in demand for electronic devices as the need for remote communication and work amplified, putting pressure on semiconductor supplies. As for the geographical distribution of household spending on products that prominently feature semiconductor components, Northern Italy leads with an average monthly expenditure between 15 and 20 euros, followed by Central Italy. The South and Islands regions exhibit a lower spending trend, with figures around 10 to 14 euros. Industry hubs in Italy include the Etna Valley, Monza-Brianza, and Avezzano, indicating regional concentrations of semiconductor-related activities. The market exhibits a trend where some industrial sectors face an oversupply of semiconductors, while others continue to experience shortages, particularly in the automotive sector where demand remains high. Conversely, sectors such as smartphones, tablets, and PCs have seen a decrease in demand, impacting semiconductor manufacturers. This demand fluctuation shows the market's cyclical nature, which alternates between expansion and contraction phases. In terms of market structure, the number of enterprises in Italy within the ATECO code 2611 has decreased after 2020, reflecting the semiconductor market's propensity.

Pioneering Semiconductor Manufacturers in Italy's Digital Evolution

The Italian semiconductor industry, though modest in comparison to global behemoths, boasts a collection of pioneering companies that significantly contribute to the sector's growth and technological advancements. Each entity plays a crucial role in the development and distribution of essential semiconductor components, not just locally but worldwide, reflecting Italy's integral part in the international semiconductor landscape.

  • STMicroelectronics S.r.l: As a flagship in the Italian semiconductor industry, STMicroelectronics represents the cooperative success between Italy and France. A result of a merger between two regional giants—SGS Microelectronica and Thomson Semiconducteurs—this company has established itself as a leader, especially in the research and development sector. With notable facilities in Agrate and Catania, STMicroelectronics prides itself on being an Integrated Device Manufacturer (IDM), investing heavily in innovative materials like silicon carbide and supporting various Technology Districts across Italy.
  • mEMC Electronics Materials S.p.a: Falling under the umbrella of the GlobalWafers Co.Ltd (GWC) Group, mEMC specializes in crafting crystals and silicon wafers vital for semiconductor production. The group's presence is marked by its sites in Novara and Merano, with the former recognized as the largest producer of 200mm silicon wafers within the EU, highlighting the company's regional superiority and commitment to high-quality production.
  • Technoprobe S.p.a: As a unique player specializing in probe cards—essential tools for semiconductor testing—Technoprobe is not only the sole Italian manufacturer of these critical components but also stands out as one of the premier global providers. Relying on their expertise and specialized offerings, Technoprobe has become synonymous with quality assurance in the chip manufacturing process.
  • LFoundry S.r.l: In the realm of imaging technology, LFoundry has carved out its niche. Based in Avezzano, the company's expertise lies in creating high-precision image sensors predominantly used in advanced driver assistance systems. LFoundry emphasizes attention to detail and precision engineering to meet the rigorous demands of modern technology.
  • SPEA S.p.a: Recognized for their commitment to quality control, SPEA designs intricate systems dedicated to detecting defects in electronic products. They ensure functionality and reliability, claiming the unique position of providing machinery that spans across all stages of electronic testing. In doing so, SPEA contributes significantly to maintaining high standards within the electronic components that shape today's technological infrastructure.
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Summary and extracts

1 Synthèse du marché

1.1 Introduction

A semiconductor is a material that possesses electrical characteristics of an insulator, but in which an electron can contribute to an electric current flow. It therefore possesses an electrical conductivity intermediate between that of metals and insulators. The semiconductor market covers products manufactured using this type of material. Semiconductors are widely used in electronics to produce various components that are then used in devices such as telephones, automobiles, computers, and more. Some of the most important are:

  • Microprocessors: Essential components for the operation of computers and electronic devices.
  • Memories: Solid-state memories used to store data and information.
  • Integratedcircuits: Devices that combine several electronic functions and components on a single chip.
  • Sensors: Devices that detect and measure various physical quantities, such as temperature, pressure, light, and motion.
  • Powerdevices: Components used to manage electrical energy in high-power applications, such as electric motors, power supplies, and solar power systems.

The year 2022 saw strong revenue growth in the microelectronics and semiconductor industry in Italy. Companies experienced this increase due to the growing demand for products and services in the industrial and automotive sectors. There were also new research and development initiatives and positive collaboration between industry and academia. However, there has been a shortage of skilled personnel that could hinder the development of the industry.[ElectronicsMarkets]

The global semiconductor market had a size of $527.88 billion in 2021 and is expected to grow from $573.44 billion in 2022 to $1,380.79 billion in 2029, registering a compound annual growth rate(CAGR) of 12.2 percent over the forecast period.[Globenewswire]

The study will discuss the economic and structural characteristics of the semiconductor market in Italy, analyzing in a general way all the sectors it includes; for in-depth information on these sectors and complementary markets, such as chips, please refer to the other specific studies available in the Businesscoot catalog.

1.2 The global market

The global semiconductor market recorded a value of $***.* billion in ****, maintaining almost the same level as in **** (***), a deterioration is expected, with a loss of **.*%. According to Richard Gordon, Practice Vice President at Gartner, weak demand for electronics is spreading from consumers to businesses, creating an uncertain investment environment. However, according ...

1.3 The Italian market

The Italian semiconductor industry, which contributes about *.*% of the European market, generated *.* billion euros in ****. The prominent segment concerns the automotive market, which absorbs **% of semiconductor sales. The value of industrial production is around * billion euros in ****, and Italy ranks as the third largest producer of electronic components in the European ...

1.4 Import-Export

Italy's import-export ratio for semiconductors (***) appears to remain fairly stable through ****, with imports always exceeding exports, but with coverage ratios of just under a point. From **** , the value of imports clearly exceeds that of exports, reaching a coverage ratio of *.**. There may be many causes, however, it is reasonable to assume ...

1.5 The impact of the Russian-Ukrainian conflict

The crisis in semiconductor materials, which had already begun in the period related to the covid-** pandemic, worsened with the outbreak of the Russian-Ukrainian conflict. The pandemic period unleashed a strong demand for electronic devices and devices, with increasingly heavy demands for appreciables. Demand for semiconductors in **** exceeded market expectations, triggering ...

2 Analyse de la demande

2.1 Demand in Italy

The industry is characterized by the presence of STMicroelectronics, the only Italian-French-owned Integrated Device Manufacturer, and a constellation of firms operating in various chip industry supply markets.

As for the others, irrespective of the degree to which their markets are affluent in the chip market, i.e., irrespective of the degree ...

2.2 Demand drivers

Semiconductor materials have a wide variety of applications, so there are different motivations driving demand in the related market.

Next-generation technologies

The growth of the semiconductor industry is undoubtedly linked to the implementation and development of new technologies that strongly need such materials to be made available to the public. In ...

2.3 The geographical distribution of demand

Regarding the geographical distribution of Italian households' spending, the highest value is in the North with with **.*€, a value not far from that of the Center (***).

Regarding industries, on the other hand, three main poles are identified:

Etna Valley Monza-Brianza Avezzano (***)

(***)

2.4 New trends in demand

The importance of chips in the Internet of Things (***) industry

In the next decade, IoT will be one of the areas responsible for semiconductor development, with sensors and software included in devices to connect them to the network. The potential applications are many, starting with smart industries, where every factor can ...

3 Structure du marché

3.1 The market structure

The semiconductor-related market size analysis is carried out based on data belonging to the category related to ATECO code **** (***). Specifically, three different quantities are considered: number of active enterprises, number of employees, and legal form of enterprises.

Regarding the number of enterprises from **** to ****, a reversal can be seen from ****, where ...

3.2 The value chain

The semiconductor value chain is extremely complex and consists of three main stages:

Research and design: accounts for between ** and ** percent of total R&D activity, and is carried out not only by companies but also through contributions from governments and universities and research centers; Design: highly knowledge- and skill-intensive, it ...

3.3 Distribution

The following are the main companies dedicated to semiconductor distribution service in Italy.

Comelec S.r.l: specializes in the distribution of high quality components in both semiconductors and passive components. It offers a wide range of services such as connector assembly, cabling, as well as design and codesign of custom ...

3.4 The main manufacturers

The main companies active in the semiconductor industry in Italy are listed below.

STMicroelectronics S.r.l: is an Italian-French manufacturer of semiconductor electronic components. It was formed in **** by the merger of Italy's SGS Microelectronica and France's Thomson Semiconducteurs. It is listed on Euronext Paris, the NYSE and the Milan ...

4 Analyse de l'offre

4.1 Supply analysis

At the root of the evolution of electronics are semiconductors, materials of a crystalline nature that have the characteristic of conducting electricity at intermediate levels with respect to a conducting or insulating material. Unlike metals, in fact, semiconductors maintain their ability to resist current flowing through them at ordinary temperatures and ...

4.2 The prices

The price of a CPU (***) is related to its most important technical characteristics, starting with the operating frequency and the number of cores and threads. Mid-range options range from €*** to €***.

Products such as Intel Core i*-***** can be purchased for less than €***, while a CPU such as AMD Ryzen * ****X*D ...

4.3 Trends in supply

Silicon photonics competition

At the Taiwan Semicon ****, one of the most important semiconductor events globally, the most talked about topic is the new silicon photonics technology that integrates optical components such as lasers with silicon-based integrated circuits to enable high-speed data transmission with longer transmission distance and low power consumption, using ...

5 Règlementation

5.1 The legislation

In recent years, Italy has become increasingly aware of the need to address the growing demand for semiconductors, planning to allocate specific resources to support the sector, particularly in the research and production phase (***).

Among the most notable interventions appear to be the approximately *** million allocated in September **** by the then ...

5.2 The incentives

NRP's support for high-tech investments

The Plan, specifically Mission *-Component * "Digitalization, Innovation and Competitiveness in the Production System," provides for the allocation of €*** million in grants (***) to support microelectronics innovation and technology projects, including semiconductor manufacturing, under "Investment * - High-tech investments." The intervention provides support for investment in civil works, facilities ...

6 Positionnement des acteurs

6.1 Segmentation

  • STMicroelectronics S.r.l
  • MEMC Electronics Materials S.p.a
  • Technoprobe S.p.a
  • LFoundry S.r.l
  • SPEA S.p.a

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Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

STMicroelectronics S.r.l
MEMC Electronics Materials S.p.a
Technoprobe S.p.a
LFoundry S.r.l
SPEA S.p.a

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