Application-Specific Integrated Circuit in South Korea Trends and Forecast
The future of the application-specific integrated circuit market in South Korea looks promising with opportunities in the telecommunication, industrial, automotive, and consumer electronic markets. The global application-specific integrated circuit market is expected to reach an estimated $21.8 billion by 2031 with a CAGR of 5.7% from 2025 to 2031. The application-specific integrated circuit market in South Korea is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the rising need for specialized and high-capacity chips and the widespread integration of artificial intelligence and machine learning among industries.
• Lucintel forecasts that, within the product type category, semi-custom will remain the largest segment over the forecast period due to its lower complexity and broad range of applications.
• Within the application category, consumer electronics is expected to witness the highest growth due to the increasing use of application-specific integrated circuits in various gadgets, such as smartphones, tablets, and laptops.
Emerging Trends in the Application-Specific Integrated Circuit Market in South Korea
Seoul is witnessing a surge in the application-specific integrated circuits (ASIC) market, shaped by cheaper technology and the changing needs of the industry. For South Korea, being a frontrunner in semiconductors, its ASIC market is determined by major shifts in the telecom sector, electric vehicles, IoT, AI, and industrial automation. These shifts align with the nation’s overarching goals of innovation, energy saving, and performance enhancement. What is even more impressive is that by adopting these technologies, South Korean businesses are not only securing their global market share but also spearheading the advancement of the semiconductor industry. Five factors are driving this advancement and reshaping the application-specific integrated circuit market.
• The Adoption of 5G Networks: The adoption of 5G networks in Korea has opened new avenues in the market for South Korean ASIC devices, particularly in telecom. The utilization of 5G infrastructure requires ASICs to optimize data processing, minimize latency, and enhance efficiency in power usage. South Korean telecom operators use ASIC design to improve communication network capabilities and ensure continuous communication and coverage. The increase in proprietary ASIC requirements will stimulate network hardware innovations, as South Korea aims to be at the forefront of the global telecommunications market.
• Automotive Electrification: In South Korea, the rise in the adoption of electric vehicles (EVs) is creating more demand for custom energy-specific integrated circuits (ASICs), especially in power management, battery charging systems, and motor control systems. As automobile manufacturers focus more on electric mobility, South Korean companies are developing efficient and cost-effective ASICs designed specifically for EV systems. This trend is promoting greater competitiveness in the domestic electric mobility industry, enhancing South Korea’s profile in the global electric vehicle market, and solidifying the country’s reputation as an innovator in energy-efficient automotive technology.
• IoT and Smart Cities Development: South Korea’s IoT infrastructure is rapidly expanding with the increasing demand for specialized energy-specific integrated circuits (ASICs) for smart devices and urban IoT infrastructure. IoT devices require chips with a small form factor, low power consumption, and high performance to ensure effortless real-time data processing and communication. South Korean manufacturers are capitalizing on this development by producing energy-efficient custom ASICs for IoT applications in agriculture, healthcare, smart cities, and more. These changes foster further development not only in the local economy but also globally, as the world shifts toward smarter cities.
• AI-Centric Specialized Integrated Circuits for Machine Learning Functions: The demand for ASICs in deep learning and data processing is growing as AI and machine learning technologies emerge. South Korean companies are focusing on the development of AI-optimized ASICs for use in sectors like robotics, automotive, and manufacturing. These companies are well-positioned to enhance AI systems with custom-designed chips that accelerate data processing and enable more efficient machine learning tasks. This development firmly secures South Korea’s position as a prominent player in the global AI semiconductor market.
• Adoption of Industry 4.0 Platforms and Automation: The application of automation, robotics, and smart factories as part of Industry 4.0 is now a reality in South Korea. Any system with high levels of automation requires a high level of sophistication and efficient power consumption, achieved through the use of powerful ASIC-based controllers. South Korean firms are now producing application-specific integrated circuits for automation, which enhances the productivity of the country’s manufacturing base. As the country continues developing smart factories and industrial IoT solutions, South Korea will undoubtedly use ASICs as a cornerstone of its manufacturing and industrial automation strategies.
South Korea’s ASIC market is evolving with the introduction of new technological paradigms like 5G, electric vehicles, IoT, AI, and the fourth industrial revolution. These paradigms are transforming the application-specific integrated circuits market and will undoubtedly further consolidate South Korea’s position as a global innovation hub. South Korea will remain competitive and increase its footprint across multiple industries if it continues to develop advanced, customized, high-performance ASICs.
Recent Developments in the Application-Specific Integrated Circuit Market in South Korea
South Korea is a global leader in the semiconductor market, and it has also established itself in the application-specific integrated circuits (ASIC) market. As the telecommunications, automotive, and industrial automation sectors require custom semiconductor devices, South Korea’s ASIC market is on the rise. This progress aligns with the nation’s focus on technological innovation and competitive market performance. The international community may take note of the five changes below that are taking place in South Korea’s ASIC industry and consider the implications for the global semiconductor industry.
• Enhancements to 5G Telecom Infrastructure: South Korea is one of the frontrunners in 5G telecom infrastructure, and this has positively increased the demand for ASICs. The country’s major telecom operators are developing bespoke semiconductor solutions to further optimize network performance and data processing capabilities. Application-specific integrated circuits are also crucial for powering and optimizing the efficiency of 5G base stations and devices. This shift has prompted South Korean semiconductor manufacturers to focus on next-generation mobile networks supporting ASIC designs.
• Increasing Demand for Semiconductors from Electric Vehicles: The rise of electric vehicles (EVs) in South Korea has introduced new opportunities for the ASIC market. The shift to EVs has focused attention on power distribution, battery charging, and motor control systems, driving demand for specialized semiconductor solutions. South Korean semiconductor firms are working to meet the need for custom ASICs that directly address performance and reliability issues faced by electric vehicles. The government’s green energy and sustainable mobility initiative also increases demand for these semiconductors, strengthening South Korea’s position in the global electric vehicle market.
• Growth of IoT Ecosystem: The growth of South Korea’s Internet of Things (IoT) ecosystem expands the need for sophisticated application-specific integrated circuits (ASICs) tailored for various uses, from smart home systems to industrial IoT automation. South Korean companies are now more actively pursuing the development of low-power, high-performance ASICs to meet the demands of IoT. These semiconductors facilitate efficient data processing, continuous monitoring, and energy control for smart city and other IoT-driven innovations.
• AI Optimized ASICs for Machine Learning: South Korea is experiencing a surge in the demand for application-specific integrated circuits (ASICs) for AI and machine learning. Powerful ASICs are needed for data collection and algorithm processing in deep learning or machine learning AI applications. South Korean companies are focusing on developing highly specialized ASICs for AI, which combine faster calculation capabilities for robotics, automotive, manufacturing, and other industries. South Korea is now a prominent player in AI semiconductor solutions.
• The Integration of Automation Within Industry 4.0: Industry 4.0 is transforming South Korea’s manufacturing industry by incorporating more automation, robotic systems, and smart factories. Industry-specific application-specific integrated circuits (ASICs) are vital for these technologies as they provide the necessary precision, low power consumption, and customization. Local semiconductor companies are innovating production processes by developing industry-specialized ASICs, which increases the country’s global competitiveness in the semiconductor market.
Recent changes in South Korea’s application-specific integrated circuits market demonstrate the need for customized semiconductor components in critical industries such as 5G telecommunications, electric vehicles, IoT, AI, and Industry 4.0 automation. These changes position South Korea as a hub for semiconductor innovation and propel local companies that are meeting global market demands. Ongoing investment in these sectors will be essential for the country to maintain its leadership in the global semiconductor industry.
Strategic Growth Opportunities for Application-Specific Integrated Circuit Market in South Korea
Demand for inflexible semiconductor solutions and improvements in technology are projected to boost the growth of the application-specific integrated circuit (ASIC) market in South Korea. High-performance ASICs are needed to cater to innovations in 5G, electric vehicles (EVs), IoT, AI, and automation, which are crucial for the country. These factors also offer Korean manufacturers a chance to establish themselves through the rapid adoption of cutting-edge custom chip technology.
• 5G Telecommunications Infrastructure Growth: For South Korea, the growing need for telecommunications services presents a unique opportunity to expand its ASIC business. Highly specialized and innovative ASICs are required in telecommunications for faster data processing. Custom chips for alleviating issues such as high latency, low energy efficiency, and poor network performance can be easily provided by South Korean companies. South Korean telecom corporations will have the chance to become competitive leaders and suppliers of custom ASICs after 5G is adopted worldwide.
• Electric Vehicle (EV) Market: The adoption of electric vehicles in South Korea is increasing the demand for ASICs, especially in power management, battery management systems, and motor control systems. Consequently, South Korean automotive companies are starting to rely more heavily on custom ASICs to achieve higher performance and efficiency for electric vehicles. This phenomenon is not only supporting the expansion of the domestic EV market but is also elevating the global standing of South Korea in electric mobility. Players in the industry have the opportunity to offer specialized ASICs that serve the needs of the growing EV submarket.
• IoT and Smart City Development: The rapid growth of the IoT infrastructure in South Korea is a tremendous opportunity for growth for ASICs. The booming demand for a multitude of IoT devices, ranging from healthcare IoT devices to smart city IoT appliances, presents an expanding market. South Korean manufacturers can take advantage of their capabilities to design application-specific integrated circuits for those devices and become key players in the international IoT and smart city markets. This will propel innovation in South Korea and contribute to the world’s movement towards more intelligent environments.
• AI and Machine Learning Applications: The increasing demand for specialized ASICs in AI and machine learning is growing across South Korea. South Korean companies are well-positioned to build proprietary custom processors that ramp up the efficiency of AI workloads with increasing robotics, automation, and data processing. These companies will be able to provide AI-optimized ASICs to a growing number of industries, including automotive, healthcare, and robotics. South Korea is set to be the leading supplier of high-performance chips for AI technologies due to its deep expertise in semiconductors.
• Industry 4.0 and Automation: The adoption of Industry 4.0 in South Korea is increasing the need for smarter supply and construction chains, and the rising demand for automation is boosting the demand for industrial ASICs. The adoption of specialized ASICs in industrial automation systems can greatly enhance the effectiveness, accuracy, and energy efficiency of manufacturing processes. This demand can be captured by South Korean firms through custom ASICs for robots, sensors, and control instruments. It is a great chance to boost the competitive position of the country in the international industrial automation and smart factory markets.
The South Korean ASIC market has notable potential for growth, driven by 5G, electric vehicles, IoT, AI, and the Fourth Industrial Revolution. By capitalizing on these innovations, South Korean companies will be able to meet the increasing demand for custom high-performance semiconductor solutions and position themselves as leaders in these industries. These trends strengthen South Korea’s position as a significant contributor to the global ASIC market.
Application-Specific Integrated Circuit Market in South Korea Driver and Challenges
A variety of factors impact the ASIC market in South Korea, such as technological, economic, and regulatory factors. The boom in telecommunications, automotive, IoT, and AI sectors brings both significant opportunities and obstacles. MSSPS needs to grasp these factors to navigate the complexities of the ASIC industry and achieve its business goals.
The factors responsible for driving the application-specific integrated circuit market in South Korea include:
• Innovations in Communication Technology: The deployment of fifth-generation (5G) network technologies is one of the primary factors contributing to the growth of the ASIC market in South Korea. Communications using 5G infrastructure require low latency and high bandwidth, making specialized ASICs critical in optimizing 5G networks. Being leaders in telecom, South Korean firms are designing new ASICs that improve network performance and energy consumption. The increasing rollout of 5G globally additionally creates a need, which helps South Korean producers take the opportunity to increase their share in the telecom market.
• Increased Interest in Electric Vehicles (EVs): The growing interest in electric vehicles has significant consequences on the industry’s need for specialized ASICs. The need for efficient power management in battery charging and motor control in EVs increases demand for ASICs. South Korea’s automotive ecosystem is also actively adopting this change and requires advanced semiconductors that will enhance EV capabilities. This trend will significantly impact the growth of the South Korean ASIC market as the country positions itself as a global leader in EV semiconductor technology.
• Development of IoT Infrastructure: The rapid expansion of IoT infrastructure, especially around smart cities and connected devices, serves as a key growth area for ASICs. South Korea invests heavily in developing smart cities, which require advanced, low-cost, power-efficient, and high-performance chips. The growing implementation of IoT in sectors such as healthcare, agriculture, and manufacturing increases demand for specialized ASICs. This allows South Korean firms to provide bespoke products in the global IoT space.
• AI and Machine Learning Development: Another important factor influencing demand for ASICs is the growing need for artificial intelligence (AI) and machine learning (ML) technologies. Industries like robotics, automotive, and healthcare produce vast amounts of data that need to be processed efficiently and in real-time, requiring dedicated ASICs. South Korea’s focus on AI-enabled innovation across multiple industries allows the country to produce advanced AI-specific ASICs. This is further supported by the country’s standing in semiconductor fabrication, meaning these uncontested leaders will be able to meet the surging global demand for AI-based ASICs.
• Industry 4.0 and Automation Growth: The shift toward adopting an Industry 4.0 framework and the increasing integration of automation and robotics into South Korean manufacturing industries are driving demand for specialized ASICs. The establishment of smart factories and high-level industrial IoT systems by South Korean companies increases demand for power-efficient and high-performance ASICs. This trend is likely to help South Korea capture a significant share of the global industrial automation market while creating tremendous opportunities for local ASIC developers.
Challenges in the application-specific integrated circuit market in South Korea are:
• Supply Chain Disruptions: One of the persistent issues for the semiconductor industry in South Korea is supply chain disruptions, which negatively impact the ASIC market. The lack of semiconductors and logistical supply chain problems, coupled with difficulties obtaining essential raw materials, limits the capacity of South Korean manufacturers to meet demand. These factors worsen production delays, inflating overall expenses and reducing the competitiveness of South Korean businesses. Solving such issues requires time, investment in domestic supply chains, and increased cooperation between various sectors to strengthen the semiconductor market’s resilience.
• Expensive Probe and Production Services: The production of custom ASICs entails considerable custom research and development (R&D) expenses. These may prove problematic for South Korean companies. The expenses incurred in R&D are high, and so are the resources needed to develop new products in response to changing market demands. Smaller companies often fall behind their more established counterparts. This can be addressed by enhancing South Korean firms’ R&D strategies and collaborating with other research and industrial organizations to innovate more effectively and reduce costs.
• Political and Trade Restrictions: The South Korean ASIC market must contend with trade restrictions and political conflicts. With changes in trade policies, especially tariffs and export bans, South Korea has a lot to lose due to aggressive competition in the semiconductor industry. Furthermore, the US-China trade war, combined with changing regulations in foreign markets like the EU, introduces risks and obstacles to the shifting of resources and technologies. Addressing these challenges requires a deliberate understanding and innovative thinking to maximize opportunities in global markets.
The factors that drive and challenge South Korea’s ASIC market reflect the intricate nature of the industry. Shifts in telecommunications, electric vehicles, IoT, artificial intelligence, and automation are pivotal technology innovations. However, challenges such as supply chain disruptions, high R&D investment needs, and regulatory issues must be addressed. South Korean companies must further refine their business strategies to outperform competitors and respond to market changes while capitalizing on advancements in semiconductor manufacturing.
List of Application-Specific Integrated Circuit Market in South Korea Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, application-specific integrated circuit companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the application-specific integrated circuit companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10
Application-Specific Integrated Circuit Market in South Korea by Segment
The study includes a forecast for the application-specific integrated circuit market in South Korea by product type and application.
Application-Specific Integrated Circuit Market in South Korea by Product Type [Analysis by Value from 2019 to 2031]:
• Full Custom ASIC
• Semi-Custom ASIC
• Programmable ASIC
Application-Specific Integrated Circuit Market in South Korea by Application [Analysis by Value from 2019 to 2031]:
• Telecommunication
• Industrial
• Automotive
• Consumer Electronics
• Others
Features of the Application-Specific Integrated Circuit Market in South Korea
Market Size Estimates: Application-specific integrated circuit in South Korea market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Application-specific integrated circuit in South Korea market size by product type and application in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different product type and application for the application-specific integrated circuit in South Korea.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the application-specific integrated circuit in South Korea.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What are the major drivers influencing the growth of the application-specific integrated circuit market in South Korea?
Answer: The major drivers for this market are the rising need for specialized and high-capacity chips and the widespread integration of artificial intelligence and machine learning among industries.
Q2. What are the major segments for application-specific integrated circuit market in South Korea?
Answer: The future of the application-specific integrated circuit market in South Korea looks promising with opportunities in the telecommunication, industrial, automotive, and consumer electronic markets.
Q3. Which application-specific integrated circuit market segment in South Korea will be the largest in future?
Answer: Lucintel forecasts that, within the product type category, semi-custom will remain the largest segment over the forecast period due to it’s lower complexity and broad range of applications.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the application-specific integrated circuit market in South Korea by product type (full custom ASIC, semi-custom ASIC, and programmable ASIC), and application (telecommunication, industrial, automotive, consumer electronics, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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