Semiconductors: emerging opportunities and winning strategies

Deloitte touche tohmatsu China technology, media and telecom teams joined forces with deloitte touche tohmatsu China Taiwan, deloitte touche tohmatsu Japan and deloitte touche tohmatsu Korea to jointly release the "semiconductor: future wave -- emerging opportunities and winning strategies" report.This report is based on the present situation and future trend of the semiconductor market in east Asia, deeply discusses the automobile semiconductor and the development opportunity brought by artificial intelligence chip for the semiconductor market, at the same time, through the research of semiconductor market m&a new normal, so as to local Chinese semiconductor industry participants, as well as the intention to tap China's semiconductor market multinational companies bring new horizons.

East Asia (China, Japan, South Korea and Taiwan) has become a hot spot for the semiconductor industry thanks to economic growth, the rise of mobile communications and cloud computing:

China controls almost half the market's value, with the mainland market and the world's leading original design manufacturers and foundries based in Taiwan and serving the world each accounting for 50 per cent of total demand.China is striving to build a fully self-sufficient semiconductor industry while striving to become a global industry engine.

Japan, on the other hand, is a major producer of semiconductor materials, high-end equipment and specialty semiconductors, while South Korea is an absolute leader in high-bandwidth memory and dynamic random access memory markets.

Growth in the semiconductor industry will flatten out as consumer electronics demand saturates.However, many emerging areas will present ample opportunities for the semiconductor industry:

In the automotive industry, the popularity of safety-related electronic systems is exploding.By 2022, automotive semiconductor components will cost $600 per vehicle.Automotive semiconductor suppliers will benefit from a surge in demand for automotive semiconductor equipment such as microcontrol units, sensors and memory.The development of automation, electrification, digital interconnection and security systems will drive the growth of semiconductor components in automotive electronics and subsystems in the next decade.

The semiconductor market for artificial intelligence is highly competitive, not only at the application level, but also at the semiconductor chip level.The cloud technology sector has become the largest market for ai chips as the use of ai chips in data centers continues to grow in an effort to improve efficiency and reduce costs.

Mergers and acquisitions in the semiconductor industry have reached a peak, and professional vertical integration has gradually become the focus of the industry.Japan and South Korea are trying to revive their semiconductor industries through acquisitions, while continuing trade wars and intellectual property disputes will stymie China's aggressive global investment.

China has become a significant source of revenue for the world's major semiconductor makers, many of which derive more than half of their revenue from the country.Multinationals looking to enter the Chinese market should consider a combination of policy, technology, marketing, logistics and global strategy.