Middle East and Africa Analog Semiconductor Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (General Purpose, Application-Specific), By Industry Vertical (Consumer Electronics, Communication and Technology, Automotive, Manufacturing), And By Country - Forecasts From 2022 to 2027

The Middle East and Africa analog semiconductor market was evaluated at US$1.236 billion for the year 2020, growing at a CAGR of 2.56%, reaching the market size of US$1.476 billion by the year 2027.

The analog semiconductor market in the Middle East and Africa accounts for a modest portion of the global market. The Middle Eastern market has improved dramatically in recent years. With recent advancements in technology and infrastructure in the region, the Middle East now aims to occupy a bigger portion of the semiconductor market. Meanwhile, the African semiconductor industry is slowly but steadily growing. With an increasing demand for consumer electronics and with the technological advancements in the region, Africa’s analog semiconductor market is set to rise. However, owing to the recent trade war between the US and China, the semiconductor market might see an increase in product prices, which in turn, might slow down the market pace.

The COVID-19 pandemic has shown the susceptibility of global growth and trade models to public health crises, as well as the rapidity with which such crises may spread and overrun towns, countries, and the world in this age of globalization. Due to the pandemic, most electronic and technology markets met with disruptions in global supply chains and marketplaces. The market saw a considerable increase in the demand for analog semiconductors in the technological field, owing to the social distancing and remote work initiatives by the government to slow down the spread of the virus. The automotive sector was also affected by this interference in supply and demand and faced a decline in production.

Further, it is expected that this imbalance in semiconductor supply and demand might last till 2023 since the semiconductor market is capital intensive industry and requires time and precision during its production. To tackle the worldwide scarcity of semiconductors, additional manufacturing units would be required to boost the production of analog semiconductors, which would be time-consuming.

Africa’s first semiconductor factory

The semiconductor industry is widely acknowledged as a critical enabler and driver for the whole electronics value chain. Africa requires a portion of the global semiconductors sector to ensure its competitiveness in the future, with technological centers throughout the continent increasing at a rate of over 50% in the previous few years.

 Africa announced the launch of its first-ever semiconductor factory in April 2021. Kenya has become the first nanotechnology and semiconductor manufacturer on the continent. The facility was built as part of public-private cooperation between the university and 4Wave Inc, a nanotechnology company situated in Sterling, Virginia. With the growing demand for smart electronic devices such as mobile phones, televisions, cars, and more, the semiconductor demand in Africa has been at an all-time high. To meet such high demands, Africa now aims to locally produce the semiconductor chips that it previously used to import from other countries. By choosing to produce such components locally, Africa is not only saving money but also creating new jobs for young people. Advancements like this help the country transform into a more industrialized nation.

Investments in solar power

Owing to the immense solar power capabilities of the Middle East, The Sudair Solar PV IPP Project was developed by Saudi Arabia’s Public Investment Fund (PIF) through its subsidiary Badeel/WEHC, Saudi Aramco, and ACWA Power aims to provide clean and sustainable energy for the Middle East. This SAR3.4 billion (US$906 Million) investment aims to create a photovoltaic solar farm with a capacity of 1.5GW by 2022. The Sudair solar power plant is being designed in accordance with Saudi Arabia's National Renewable Energy Program (NREP), which intends to reach 58.7 GW of renewable energy capacity by 2030. This project also aims to create employment and uplift the technological infrastructure in the region.

Semiconductors are an important aspect of a solar-powered panel. Introducing such solar power projects would be a huge advantage for the analog semiconductor industry. Projects like these would benefit the local semiconductor producers and provide them with the opportunity to develop their industry.

Conflicts proving difficult

With an increase in taxes employed by both the countries, the local produce of those countries is becoming expensive. With China being the largest silicon exporter, the trade war might harm both the Middle Eastern and African semiconductor sectors, as prices are likely to rise. The newly created African semiconductor market will be impacted by the increase in raw material prices, which might prove problematic for the area. The Middle Eastern market would suffer a similar consequence since it prepares significant technology improvements for the nation, which might be delayed by the trade war.

Segmentation

• By Type
  • General Purpose
  • Application-Specific
• By Industry Vertical
  • Consumer Electronics
  • Communication and Technology
  • Automotive
  • Manufacturing
• By Countries
  • United Arab Emirates
  • Israel
  • Saudi Arabia
  • Others

Qualcomm Technologies Inc 

STMicroelectronics

Skyworks Solutions Inc

Infineon Technologies AG

NXP Semiconductors

Maxim Integrated

ON Semiconductor

Microchip Technology Inc

Renesas Electronics Corporation