The Interface IC Market is expected to grow from USD 3.743 billion in 2025 to USD 4.395 billion in 2030, at a CAGR of 3.26%.
Integrated circuit (IC) interfaces are semiconductor chips that govern and manage information transfer between devices. Supply voltage, data rate, operational current, power dissipation, and temperature junction are all performance parameters for IC interfaces. Interface integrated circuits (ICs) govern and manage signal communications between various electronic systems. These ICs determine how data is sent based on the communication protocol. Semiconductor device manufacturers are incorporating an increasing number of transistors per integrated circuit (IC), resulting in greater circuit design complexity and physical access constraints.
Automotive is one of the market's most important end users. The progress of automotive technology and manufacturing is pushing the demand for compact, power-efficient electronics. The rapid deployment of 5G networks, together with the growing number of Internet of Things (IoT) applications for devices, such as assisted driving and vehicle-to-everything communication for smart transportation, are likely to drive up demand for Interface ICs. For instance, In January 2022, Toshiba Electronics Europe GmbH released a new Ethernet bridge IC. The TC9563XBG comprises a PCIe Gen 3 switch with three external ports for connection with the host-controller SoC and other PCIe-enabled devices such as 5G-modem modules. Automotive networks are transitioning to zonal architecture, which necessitates real-time transmission between zones through multi-gigabit Ethernet communication. As a result, with dual 10 Gbps AVB and TSN-enabled Ethernet interfaces, the TC9563XBG is perfect for next-generation automotive networking. The interface IC is also used in vehicle LCD panels as a local dimming solution. Local dimming backlighting technology changes LEDs in an LCD panel individually to save power and increase contrast ratios in-car displays. Local dimming using LEDs is a more practical design choice than globally dimmed displays and organic LEDs (OLEDs) because it can resist the harsh temperatures and vibration typical in automotive applications. For instance, Synaptics Incorporated unveiled the SmartBridge SB7900 local dimming IC in January 2023, allowing for larger, higher-contrast, higher-resolution car LCDs while cutting overall power and cost. The SB7900 SmartBridge provides superior image quality, greater system implementation flexibility, and reduced device footprint, power consumption, and complexity for displays up to 30 inches and resolutions up to 6K by combining the ability to drive multiple touch and display driver integrated (TDDI) controllers with the best-in-class local dimming of the backlight array.
The USB interface IC product sector is predicted to develop over the forecast period because it can manage next-generation power requirements while also delivering enhanced functionality as larger hardware items begin to embrace the protocol. As larger pieces of hardware begin to use the protocol, FTDI Chips has therefore released its most recent line of multi-channel USB interface ICs in March 2020 with the ability to handle future generation power requirements. Each has a Type-C/PD controller that handles all power gauging and negotiation before determining the best course of action. As a result, any equipment that incorporates these ICs will be able to drain or provide power as necessary. Such multichannel bridge ICs fully support the most recent USB Type-C and Power Delivery (PD) standards, providing power negotiation as well as the ability to sink or source current to a USB host device. Additionally, in April 2020, Parade Technologies, Ltd., a well-known provider of interface and video ICs, declared that it had signed an agreement and a merger plan to buy Fresco Logic, Inc., a fabless semiconductor business with a focus on high-speed data transport and I/O aggregation chip and technology. To offer customers cutting-edge, high-speed products, the acquisition of USB Hub and its pertinent intellectual property portfolio will hasten the development and execution of their roadmap for the USB4 product range and beyond.
A high number of regional semiconductor manufacturing activities give Asia-Pacific a significant market share. To meet the rising demand from fabless vendors, the region's pure-play manufacturers are expanding their production capacity. The in-cabin experience is being improved by Indian OEMs to provide secure connectivity and quick charging of personal devices for drivers and passengers. With more connections spread out across the cabin, automotive USB-based power supply is quickly developing to satisfy the larger power requirements of products like tablets and laptops. For instance, A dual-channel USB Power Delivery (PD) IC that lowers component count, streamlines designs and improves the dependability of in-cabin vehicle charging systems for portable devices was released in July 2022 by indie Semiconductor, an innovator in Autotech solutions. It combines power conversion and control while supporting any USB Type A and Type C port configuration. To spur industry expansion, China is likewise attempting to consolidate its substrate manufacturing business. The region's vendors are aggressively focusing more on diversification into chip markets outside of the mobile industry. For example, Chunghwa Precision Test Tech (CHPT), a Taiwanese IC test interface specialist, was focusing on increasing deployments beyond handsets in April 2022 due to the rising demand for smartphones.
Interface IC Market Segments: