Buy the full study
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
to understand this market
Detailed content of our market study
Inforamtion
- Number of pages : ~ 40 pages
- Format : Digital and PDF versions
- Last update :
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.
1.2 Global market
The semiconductor market has seen ups and downs in recent years, including the Covid-** crisis and the trade war between China and the United States. However, the market growth is a strong trend, which is expected to be accelerated by the digitization of companies, the transition to *G or even the ...
1.3 Size of the French semiconductor market
Although the majority of current production capacity is located in the Asia-Pacific region, notably in China and South Korea, France remains a major player in the semiconductor market.
Data on revenues generated by the French semiconductor sector are collected by INSEE under NAF code **.**: "Manufacture of electronic components", which includes the ...
1.4 Trends and cyclicity
The semiconductor industry is a cyclical industry that follows the course of the global economy. Indeed, this industry is strongly influenced by the demand for personal computers smartphones and more generally, by the electronics industry.
France is an exception in that **% of its sales are in the industrial and automotive sectors, ...
1.5 International trade
To quantify global semiconductor trade, the Semiconductors Industry Association(***) relies on UN Comtrade data collected under HS codes:
****: Diodes, transistors and semiconductor-like devices; ****: Electronic integrated circuits.
This allows us to establish France's trade balance, as well as its main suppliers and buyers for this product.
Trade balance
Aggregating the data ...
2 Analysis of the demand
2.1 Final destination of semiconductors
Semiconductors are intermediate manufactured products, which are needed in the realization of a wide variety of finished products. The SIA's annual report gives an idea of the markets and their proportions. The demand from car manufacturers has grown by **.*% per year, overtaking consumer products and other industrial sectors. Governments are using ...
2.2 Demand driven mainly by cell phones
Mobile telephony is a major market for the semiconductor industry. Estimated to be worth nearly $** billion in ****, this segment could grow by *.**% through ****. Asia-Pacific is the driving region in this segment.
This growth is fueled by the introduction of *G, but also by the development of technologies such as cloud computing ...
2.3 Demand driven by the automotive industry
Vehicle electrification is a growth driver for the semiconductor industry. globally, China has the largest electrified fleet in the world, accounting for **% of the global fleet. In Europe, **% of the fleet is electric.
evolution of the share of electric car sales in the automotive market France, ****-****, % Source: ****
Strategy Analytics predicts ...
3 Market structure
3.1 Industry characteristics
The main differentiating factor in the semiconductor industry is the quantity of transistors that can be placed on a chip. The market is characterized by tough competition, which pushes manufacturers to constantly improve the quality of their products. Thus, the industry has generated the theorization of " Moore's Law ", which states that ...
3.2 Production
The production of electronic components is particularly meticulous. Indeed, because of their size and functions, no error is allowed
Producing electronic components therefore requires a significant basic investment in order to benefit from the best infrastructure. The quality of an electronic component will determine the success of its manufacturers.
The complexity ...
3.3 Distribution
Because semiconductors are so fragile, good distribution is crucial, and manufacturers have a choice between going through distributors or selling directly.
According to Acsiel, sales through distributors will be more popular in ****, while the market is still suffering from shortages. This choice of the distribution answers the will of diversification of ...
4 Analysis of the offer
4.1 Products
Semiconductors are mainly divided into two main product categories: discrete semiconductors and integrated circuits. Sensors and optoelectronic devices can also be distinguished.
Breakdown of global sales by product type World, ****, % Source: ****
The role of discrete semiconductors is to perform a single function. They differ from integrated circuits, which integrate several functions, ...
4.2 Prices
The prices shown in Table * are price ranges for the four main semiconductor categories: Discrete, Analog ICs, Logic ICs and Memory ICs. These prices are obtained through Mouser Electronics, a U.S. online distributor of electronic components.
The table compares the semiconductor prices of the two European market leaders: the French ...
4.3 A highly competitive market in perpetual change: examples of two French start-ups
The shortage of semiconductors caused by the Covid-** pandemic has accelerated the upheaval in the industry. One of the major current innovations is that of reprogrammable semiconductors, which make it possible to assemble all the components of the finished product on a single chip. Another research avenue is the exploitation of ...
5 Regulation
5.1 A regulatory framework implemented by the EU
In the context of the trade war between China and the United States, products manufactured in the EU are receiving increased attention from Chinese actors. [***] However, the sale of chips and semiconductors, as dual-use exports that can be applied for military purposes, is protected. The sale therefore requires authorization and is ...
6 Positioning of the actors
6.1 Segmentation
- Elkem
- Soitec
- Murata Manufacturing
- STMicroelectronics
- NXP Semiconductors
- Qualcomm
- Intel
- Avnet
- Arrow Electronics France
- Samsung Group
- ASML
- Apple
- Icape
- JSR
- Hua Hong Semiconductor
- UpMem
- Linxens
- XFAB
- Wise Integration
- Air Liquide
- Samsung Electronics France
- UnitySC
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
All our studies are available online in PDF format
Take a look at an example of our research on another market!
Latest news
How Samsung Electronics plans to become the world's largest chipmaker - 14/06/2024
- Samsung Electronics' objective: to offer its Silicon Valley customers (Nvidia, Apple, Tesla, Amazon) an essential technological solution by 2026.
- - Samsung Electronics foundry market share in the first quarter of 2024: 11%.
- - TSMC (Taiwan Semiconductor Manufacturing Company) foundry market share in the first quarter of 2024: 62%.
- - Investment required for a state-of-the-art semiconductor plant: between $10 and $20 billion.
- - Samsung capacity: integrated production of memory chips, design and manufacture of various semiconductors
- - Current production time for a complex graphics processor: three months.
- - Samsung production target: 2-nanometer computing chips in 2026 and 1.4-nanometer chips in 2027.
- - Order growth forecast for AI chips at Samsung: 9-fold by 2028.
- - Estimated value of the total AI semiconductor market (all producers combined) per year in 2028: $400 billion.
Air Liquide, another key player in the world of semiconductors - 03/06/2024
- - Air Liquide holds a quarter of the world market for gases used in semiconductor production.
- - In 2023, this activity generated 2.5 billion euros in sales for Air Liquide, representing 9% of its annual revenues.
- - The global semiconductor market could reach $1,000 billion by 2030, up from $520 billion last year.
- - Last week, Air Liquide inaugurated a new production line in Sejong, south of Seoul, dedicated to the manufacture of diborane, a complex molecule demanded by the sector's giants.
- - Air Liquide's two recent projects in the semiconductor sector, including the opening of a new plant in Taiwan, represented an investment of $200 million.
Air Liquide buoyed by energy transition and electronics - 20/02/2024
- Sales of 27.61 billion euros in 2023.
- Gases and services account for 95% of revenues
- Air Liquide has generated growth worldwide.
- In hydrogen, investment of 400 million euros in the construction of Europe's largest electrolyzer, Normand'Hy
- Inauguration with Siemens Energy of an electrolyser gigafactory in Berlin.
- 200 million investment in two new advanced materials production centers in Taiwan and South Korea
- 140 million investment in the construction of an air separation unit in Quebec, specializing in electric batteries.
Hydrogen: Air Liquide to build a giant electrolyser in Normandy - 21/12/2023
- Electrolyser capacity in Normandy: 200 megawatts (MW)
- Planned hydrogen production: 80 tonnes / day
- Amount of Air Liquide project: 400 million euros (Subsidies received for the project: 190 million euros)
- Air Liquide sales: 30 billion euros
- Air Liquide's target for electrolysis capacity increase by 2030: 3 gigawatts (GW)
- Current production capacity of the Berlin gigafactory in partnership with Siements Energy: 1 GW
- Hydrogen production from an electrolyser in Canada starting up in 2021: 8.2 tonnes / day
- Electrolyser nearing completion in Oberhausen (Germany): 30 MW
- Air Liquide's hydrogen experience: 60 years with over 200 stations and 350 production units.
Samsung launches real-time translation tool on upcoming 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
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. :
Choosing this study means :
Access to more than 35 hours of work
Our studies are the result of over 35 hours of research and analysis. Using our studies allows you to devote more time and added value to your projects.
Benefit from 6 years' experience and over 1,500 industry reports already produced
Our expertise enables us to produce comprehensive studies in all sectors, including niche and emerging markets.
Our know-how and methodology enable us to produce reports that offer unique value for money.
Access to several thousand articles and paid-for data
Businesscoot has access to all the paid economic press as well as exclusive databases to carry out its market research (over 30,000 articles and private sources).
To enhance our research, our analysts also use web indicators (semrush, trends, etc.) to identify market trends and company strategies. (Consult our paying sources)
Guaranteed support after your purchase
A team dedicated to after-sales service, to guarantee you a high level of satisfaction. +44 238 097 0676
A digital format designed for our users
Not only do you have access to a PDF, but also to a digital version designed for our customers. This version gives you access to sources, data in Excel format and graphics. The content of the study can therefore be easily retrieved and adapted for your specific needs.
Our offers :
the semiconductor market | France
- What are the figures on the size and growth of the market?
- What is driving the growth of the market and its evolution?
- What is the positioning of companies in the value chain?
- Data from several dozen databases
Pack 5 études (-15%) France
- 5 études au prix de 75,6€HT par étude à choisir parmi nos 800 titres sur le catalogue France pendant 12 mois
- Conservez -15% sur les études supplémentaires achetées
- Choisissez le remboursement des crédits non consommés au terme des 12 mois (durée du pack)
Consultez les conditions du pack et de remboursement des crédits non consommés.
Our customer references
They have consulted our studies
Discover the opinions (+500)
Malcolm Vincent
Astoria Finance
Gregoire de Castelnau
Stags Participations
Timothé Huignard
PWC
Paul-Alexis Kebabtchieff
BCG
Aymeric Granet
Publicis Consultant
interviews & case studies
All interviews and case studies (45)
