HS Code:
Controllers, including microcontrollers, fall under the HS Code 8537.10 (for control panels and similar equipment) and related codes like 8542.31 (for electronic integrated circuits as processors and controllers). These are critical electronic components used in a wide range of applications, from consumer electronics and automotive systems to industrial automation and IoT devices. Microcontrollers are integrated circuits that contain a processor core, memory, and programmable input/output peripherals, often used to control specific functions in embedded systems. The global trade of controllers is driven by the increasing demand for automation, smart devices, and advanced manufacturing technologies.
Total Trade Volume
Approximately $150 billion USD
Data from 2022
Source
United Nations Comtrade Database, World Trade Organization (WTO) Reports
$45 billion USD
30% of total trade of total trade
Increasing
$25 billion USD
17% of total trade of total trade
Stable
$20 billion USD
13% of total trade of total trade
Increasing
$15 billion USD
10% of total trade of total trade
Stable
$10 billion USD
7% of total trade of total trade
Decreasing
Average Rate
5.2% ad valorem
Highest Rate
15% (imposed by certain developing countries on imports to protect domestic industries)
Lowest Rate
0% (under free trade agreements like USMCA or EU-Japan EPA)
Rising Demand for IoT Devices
Increased production and trade of microcontrollers for smart home devices, wearables, and connected infrastructure, driving market growth by 8-10% annually.
2021-2023
Automotive Sector Growth
Growing adoption of electric vehicles (EVs) and advanced driver-assistance systems (ADAS) has boosted demand for automotive-grade controllers, contributing to a 15% trade increase in this segment.
2022
Supply Chain Disruptions
Global semiconductor shortages have constrained supply, leading to price increases and delayed deliveries, impacting trade volumes negatively by 5-7%.
2021-2022
The US imposed additional tariffs and export controls on Chinese semiconductor and controller technologies, citing national security concerns.
October 2022
Reduced Chinese exports to the US by approximately 10%, while prompting diversification of supply chains to Taiwan and South Korea.
The European Union introduced the Chips Act to boost domestic semiconductor production, including controllers, aiming to reduce reliance on Asian imports.
February 2023
Expected to increase EU's share in global trade by 5% over the next decade, with incentives for local manufacturing.
Taiwanese companies like TSMC have ramped up production of advanced microcontrollers to meet global demand amidst supply chain challenges.
Mid-2023
Strengthened Taiwan’s position in the market, with a projected 8% increase in export volume for 2023.