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Electronic integrated circuits, also known as ICs, silicon chips, or semiconductor chips, are widely used in a diverse range of applications, from children's toys to sophisticated satellite systems. They are used in a wide variety of consumer electronics, such as smartphones, laptops, and televisions, where they enable the devices to perform a range of functions, from processing data to communicating with other devices. In addition to their use in consumer electronics, ICs are also widely used in industrial applications, such as process control systems, robotics, and factory automation. They are used in medical devices, such as pacemakers and insulin pumps, as well as in automotive systems, such as engine management and safety systems. Integrated circuits are an essential technology that plays a vital role in all aspects of our daily lives.
The majority of the demand for semiconductors is driven by products that are eventually purchased by consumers, such as laptops or smartphones. The emerging markets in Asia, Latin America, Eastern Europe, and Africa are increasingly driving consumer demand. The semiconductor market is divided into two main categories: PC/computer and communications, each comprising approximately 30% of the total market. The remaining market is divided among automotive, consumer, and industrial sectors, each accounting for around 12%.
The United States was the leading producer of semiconductors until the 1980s. However, since then, its share of global semiconductor industry sales has decreased from 60% in the early 1980s to around 20% in the 2010s, while Asia's share increased from about 10% to nearly 70%, according to the Semiconductor Industry Association (SIA) based in the United States. In 2022, China alone accounted for 32% of total global semiconductor industry sales, down from 35% in the previous three years. Asia surpassed the Americas (primarily the U.S.) in semiconductor industry sales in 1985, and China overtook the Americas in the 2010s. The semiconductor industry sales ratio of Asia to the Americas (primarily the U.S.) increased from 1.1 in 1985 to a peak of 4.5 in 2008, and then declined to 3.5 in the 2010s. The United States is now seeking to increase its national production and strengthen its position in the semiconductor industry.
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