SEMICONDUCTOR MEMORY MARKET ANALYSIS

Semiconductor memory is a type of semiconductor device, which is designed to store data namely computer memory. Semiconductor memory is typically referred to as MOS memory where data is stored within metal-oxide-semiconductor memory cells on a silicon-integrated circuit memory chip. There are two different types of electronic storage mediums namely magnetic storage and optical storage. In magnetic storage, data is stored in magnetic form, while in optical storage it uses a laser to read or write. The semiconductor memory is directly accessible by the microprocessor.

The global semiconductor memory market is estimated to account for US$ 43.27 Bn in terms of value by the end of 2030.

Market Dynamics- Drivers

Rising consumption of smartphones, especially in the Middle East and North America is expected to drive the growth of the global semiconductor memory market during the forecast period

The demand for smartphones has increased significantly in the recent past, especially in the Middle East, and North America. According to the GSM Association, in 2018, the number of mobile subscribers was 5.1 billion, which 67% of the global population. Rapid digitalization and automation in the aforementioned regions have led to increased use of smartphones. The use of memory-based elements in technologically advanced products such as wearables smartphones is increasing rapidly. Thus, these factors are expected to drive growth of the global semiconductor memory market during the forecast period.

Rapid development in automotive technologies is expected to propel the global semiconductor memory market growth over the forecast period

The automotive sector is increasing using memory solutions for its safety systems, owing to its excellent performance and low power consumption benefits. Memory solutions are playing a crucial role in autonomous driving capabilities, particularly for vehicle-to-everything (V2X) connectivity and comprehensive in-vehicle infotainment (IVI) systems. These technologies require power memory solutions with companies such as Samsung leading the race. For instance, Samsung memory supports vehicle systems that power different functionalities such as vision computing, fusion, and HD maps. Thus, these factors are expected to propel the global semiconductor memory market growth over the forecast period.

Figure 1: Global Semiconductor Memory Market Share (%), in terms of Value, By Region, 2030

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Global Semiconductor Memory Market: Restraints

High production costs are expected to restrain growth of the global semiconductor memory market during the forecast period

Although semiconductor memory solutions are highly advantageous, they are significantly expensive to procure due to high production costs. As a result of this, many end users are hesitant towards buying it. Moreover, manufacturers face cost-based challenges such as high labor wages and employment costs in the U.S. Thus, these factors are expected to restrain growth of the global semiconductor memory market during the forecast period.

Constant fluctuations in raw material supply are expected to hamper the global semiconductor memory market growth over the forecast period

The main raw material required for semiconductor devices is silicon, which is converted into boules or also called single-crystal ingots. Other semiconductor materials include silicon carbide, germanium, gallium arsenide, and more. Since these materials are challenging to obtain, there prevalent a constant issue related to its supply with frequent fluctuations. Thus, these factors are expected to hamper the global semiconductor memory market growth over the forecast period.

Global Semiconductor Memory Market: Opportunities

Modernization vehicle architecture can present lucrative growth opportunities in the global semiconductor memory market

Vehicle architecture modernization provides massive opportunities for market players. Different aspects of vehicle architecture such as automated driving systems, infotainment systems, and safety systems can incorporate semiconductor memory devices, in order to enhance user experience. Flash and DRAM memory are used in lighting control & ADAS systems that offer high-speed and connectivity to the vehicle systems. Key companies in the market can capitalize on these opportunities in the market by provide novel products and gain a significant advantage in the market.

R&D activities can provide major business opportunities in the global semiconductor memory market

Key companies are focused on research and development activities, in order to enhance the market presence. For instance, in November 2018, Micron Technology collaborated with BMW Group to improve the development of automotive memory solutions.

Figure 2: Global Semiconductor Memory Market By Type (US$ ), 2017 - 2030

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The global semiconductor memory market is expected to reach a value of US$ 43.27 Bn by 2030 at a CAGR of 5.5% between 2023 and 2030.

Global Semiconductor Memory Market: Trends

Semiconductor memory solutions are increasingly being used in the healthcare sector in various medical devices to monitor diseases, share data securely, and analyze medical information remotely. Such devices promote more accessible healthcare, especially in rural and remote areas. For instance, in Rwanda, medical companies have started using drones to deliver human medical supplies such as blood and organs, which uses semiconductor memory drones.In consumer electronics, semiconductor memory devices are used as a digital electronic semiconductors for the storage of digital data namely computer memory. Consumer electronics such as wearables, smartphones, and other smart devices. Key companies in the market can provide novel products and gain a significant advantage in the competitive market.

Competitive Section

Key players operating in the global semiconductor memory market are Microchip Technology, Inc., SK Hynix, Inc., NXP Semiconductors, Samsung Electronics Co., Ltd., Intel Corporation, Infineon Technologies AG, Cypress Semiconductor Corporation, Renesas Electronics Corporation, Semiconductor Manufacturing International Corporation (SMIC), Taiwan Semiconductor Manufacturing Company Limited (TSMC), Texas Instruments Incorporated, Toshiba Corporation, and Western Digital Corporation.

Key Developments

1. Key players operating in market are focused on product launches, in order to enhance the market presence. For instance, in August 2020, SK Hynix, Inc. launched PCIe SSD: the SK Hynix Gold P31 semiconductor.
2. Major market players are focused on capacity expansion, in order to gain a competitive edge in the market. For instance, in May 2020, Samsung Electronics Co. Ltd. expanded its sixth domestic contract chip production line in South Korea.

*Definition: Semiconductor memory is a digital electronic semiconductor device used for digital data storage, such as computer memory. It typically refers to devices in which data is stored within metal–oxide–semiconductor (MOS) memory cells on a silicon integrated circuit memory chip.