APAC Analog IC Market

APAC Analog IC Market Analysis

The APAC Analog IC Market size is estimated at USD 69.17 billion in 2025, and is expected to reach USD 98.93 billion by 2030, at a CAGR of 7.42% during the forecast period (2025-2030).

An analog IC is a network of interconnected components manufactured over a single wafer of semiconducting material. These components operate over a continuous range of input signals in discrepancy to their counterpart digital circuits having only two input and output voltage levels.

• These ICs are used in various applications, including third and fourth-generation (3G/4G) radio base stations and portable device batteries. RFICs (radio frequency ICs) are analog circuits that usually run in the frequency range of 3 kHz to 2.4 GHz (3,000 hertz to 2.4 billion hertz) circuits that would work at about 1 THz (1 trillion hertz). They are widely used in cell phones and wireless devices.
• The Japanese telecommunications market is one of the biggest in the world by revenue, with few large fixed and mobile network operators that have invested heavily in towers and fiber infrastructure over the past two decades despite an overall market underpinned by low economic and population growth. 5G adoption is also attaining traction in the region, and the region strives to reach almost full 5G coverage by the end of 2030.
• However, while advanced integrated circuit technologies and many other factors help digital circuits to be reliable, lower in cost, and smaller in size, the lack of skilled engineers and the complexity of the designs can result in expensive analog circuits and restrict the market's growth.

APAC Analog IC Market Trends

Surging Demand for Communication Devices Drives Market Growth

• In recent years, the emergence of different technologies, including smartphones, tablets, and various cloud-based services, has driven a steady increase in demand for faster and more pervasive personal mobile communication systems, which has resulted in the introduction of a growing variety of wireless base stations (BTS), creating the connection points between the mobile terminals and the main wired network.
• With the increasing investments in 5G, the number of 5G base stations is also rising in the region. For instance, according to the Ministry of Industry and Information Technology (MIIT), China aims to have 2 million installed 5G base stations by the end of 2022 to expand the country's next-generation mobile network. The Chinese mainland at the time has 1.425 million installed 5G base stations that support more than 500 million 5G users nationwide, making it the biggest network in the world, as per MIIT.
• The rapid growth of smartphones and smart home devices in the markets in recent years has fueled the demand for analog ICs in India and South Korea. The increasing adoption of the fifth-generation (5G) wireless technology for digital devices is also a major factor in the growing demand for connected devices and smart products, thereby increasing the need for the analog ICs used in these devices.
• As per the Korea Information Society Development Institute (KISDI), the ownership rate of smartphones in South Korea increased significantly to 94.8% in 2023 compared to 91% in 2020. Such an increase in the adoption of smartphones in the region is expected to increase the demand for analog ICs in the market.
• Japan is set to witness a significant shift in its mobile landscape by 2025. Projections indicate that 5G subscriptions, driven by major operators like NTT Docomo, KDDI, Softbank, and Rakuten, will outstrip 4G connections. This surge will establish 5G as the primary technology, capturing an estimated 70% share of the nation's mobile subscriptions, while 4G steadily diminishes.
• In addition, the Japanese government intends to reach a coverage of 95% of the population by March 2024. Such factors may play a significant role in driving the analog IC market in the region.

China to Hold a Significant Market Share

• China is among the top countries creating semiconductors and related devices and consumption. The government has noticed a boost in the electronics industry, particularly since the infamous trade dispute with the United States. Although the local analog IC design and manufacturing houses are still behind their international counterparts, the favorable industry regulations and growing focus of different industry stakeholders are anticipated to facilitate the industry's growth.
• In China, the automotive industry is among the leading market drivers for analog Ics. The fast growth of the new energy vehicle (NEV) in the domestic and international market and the growing demand for analog chips employed in automotive electronics are promoting the growth of the market.
• For instance, according to the China Association of Automobile Manufacturers (CAAM), in April 2022, China's new energy vehicle sales amounted to 299,000 units, of which 280,000 were electric passenger vehicles and 19,000 were commercial electric vehicles. Sales of passenger battery electric vehicles (BEVs) and passenger plug-in hybrid electric vehicles (PHEVs) were 212,000 and 68,000 units, respectively.
• The development of the automotive industry is driving the need for analog ICs, encouraging IC manufacturers to extend their production capacities further and design innovative solutions. For instance, in August 2022, analog IC foundry GTA Semiconductor started its capacity expansion project in the Lingang Special Area in the Shanghai Pilot Free Trade Zone. It plans to set up new production lines for automotive chips.
• The increasing penetration of 5G technology is driving the demand for 5G-enabled smartphones and supporting the digitization of other industries in the country. The high-speed data connectivity facilitated by 5G is expected to positively impact industrial automation and the adoption of advanced technologies such as AI, IoT, etc. As a broad range of electronic devices is used to establish such infrastructure, the demand for analog circuits is also expected to grow.

APAC Analog IC Industry Overview

The Asia-Pacific analog IC market is moderately consolidated, with many companies supplying ICs, and few have a small market share. The companies enter strategic partnerships and develop new technologies to maintain their market share.

• November 2022 - Magnachip Semiconductor Corporation announced that it launched its first Power Management Integrated Circuit (PMIC) for IT devices equipped with OLED screens, a core component to supply power to electronic devices. It plays an essential role as the battery life of handheld IT devices like laptops and tablets is highly dependent on power efficiency. The new IC incorporates one boost regulator for the power supply to source and gate drivers, one low dropout (LDO) regulator, two voltage reference operational amplifiers, three negative output LDO regulators, three high-current buck regulators for power supply to a timing controller, and two operational amplifiers for the gamma buffer.
• September 2022 - Analog Devices announced that it would increase its investment in the Chinese market and upgrade Analog Devices (Shanghai) Co. Ltd to Analog Devices (China) Co. Ltd as ADI's headquarters-based organization for investment and operation in China, which is an essential action to enforce the localization strategy in the Chinese market. After this upgrade, ADI China will have all-around capabilities from need research, product definition, R&D, market sales, and operations. The new company will create local independent decision-making products for the Chinese market and deliver a flexible RMB payment and settlement model.

APAC Analog IC Market Leaders

APAC Analog IC Market News

• June 2024: Asahi Kasei Microdevices (AKM) unveiled a cutting-edge line of integrated circuits (ICs), boasting enhanced functionalities in a smaller form factor compared to its predecessors. These ICs come equipped with an inbuilt Delta-Sigma (ΔΣ) modulator, streamlining the need for separate shunt resistors and isolated analog-to-digital converters (ADCs).
• February 2024: Taiwan Semiconductor Manufacturing Co. Ltd (TSMC) launched Japan Advanced Semiconductor Manufacturing Inc. (JASM), in Kumamoto Prefecture, Japan. The event saw the convergence of suppliers, customers, business partners, academia, and representatives from the Japanese government, all coming together to express gratitude for their unwavering support and collaborative efforts that culminated in the project's success.