Semiconductors - Indonesia

Indonesia

Revenue in the Semiconductors market is projected to reach US$1.54bn in 2024.
Integrated Circuits dominates the market with a projected market volume of US$1.25bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 13.49%, resulting in a market volume of US$2.90bn by 2029.
In global comparison, most revenue will be generated in China (US$177.80bn in 2024).

Definition:

Semiconductors are the crucial building blocks of all the electronics we see daily. The semiconductor industry comprises companies that design, fabricate, assemble, test, and supply semiconductors that are suitable for various applications. The semiconductor market represents the market size of the semiconductors used in various electronics applications.

Structure:

The semiconductor market is structured into four different markets based on the functionality of the semiconductors as follows:

The Discrete Semiconductors market represents the semiconductors that have a basic function and are mostly built using a single semiconductor device. These are further used in an application in conjunction with other semiconductors.
The Integrated Circuits market is the largest market and represents the semiconductors that have specific functionality. They generally consist of several basic semiconductor devices. This market is further divided into Analog Integrated Circuits, Logic Integrated Circuits, Memory Integrated Circuits, and Micro Integrated Circuits.
The Optoelectronics market represents the semiconductors that have functionality related to light.
The last market Sensors & Actuators represents the semiconductors that sense real-world factors and those that actuate other devices.

Additional Information:

The semiconductor market comprises revenue, revenue change, and key player market shares as the key performance indicators. Only the revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included and the revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B), and governments (B2G). Further definitions of the markets can be found on respective pages.

Key players in this market include Samsung, Intel, SK Hynix, Qualcomm, Micron, etc.,

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Market

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Analyst Opinion

The Semiconductors market in Indonesia is experiencing steady growth due to increasing customer preferences for advanced electronic devices and the country's special circumstances.

Customer preferences: Indonesian customers are increasingly demanding advanced electronic devices such as smartphones, tablets, and laptops, which are driving the growth of the Semiconductors market. These devices require high-performance semiconductors to support their functionalities and provide a seamless user experience. Additionally, the growing popularity of Internet of Things (IoT) devices and smart home technologies is further driving the demand for semiconductors in Indonesia.

Trends in the market: One of the key trends in the Semiconductors market in Indonesia is the shift towards smaller and more power-efficient semiconductors. With the increasing demand for portable electronic devices, manufacturers are focusing on developing smaller and more energy-efficient semiconductors to meet the needs of the market. This trend is driven by advancements in semiconductor manufacturing processes, such as the development of new materials and technologies. Another trend in the market is the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies. These technologies require high-performance semiconductors to process large amounts of data and perform complex calculations. As AI and ML applications become more prevalent in various industries, the demand for semiconductors with advanced processing capabilities is expected to increase.

Local special circumstances: Indonesia has a large and growing population, which provides a significant consumer base for electronic devices. The country's young and tech-savvy population has a strong affinity for the latest gadgets and technologies, driving the demand for semiconductors. Additionally, the government of Indonesia has been actively promoting the development of the electronics industry, which includes the semiconductor sector. This support from the government has created a favorable business environment for semiconductor manufacturers and has contributed to the growth of the market.

Underlying macroeconomic factors: The growth of the Semiconductors market in Indonesia is also influenced by underlying macroeconomic factors. The country's strong economic growth and increasing disposable income have led to higher consumer spending on electronic devices, which in turn drives the demand for semiconductors. Furthermore, Indonesia's strategic location in Southeast Asia makes it an attractive market for semiconductor manufacturers looking to expand their presence in the region. In conclusion, the Semiconductors market in Indonesia is growing steadily due to increasing customer preferences for advanced electronic devices, the adoption of new technologies, the country's special circumstances, and underlying macroeconomic factors. As the demand for electronic devices continues to rise, the demand for semiconductors is expected to grow further in the coming years.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the money spent at the manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use the annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.