Semiconductor Device Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 621.01 Billion |
| Market Size (2029) | USD 928.93 Billion |
| CAGR (2024 - 2029) | 8.39 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Semiconductor Device Market Analysis
The Global Semiconductor Device Market size is estimated at USD 621.01 billion in 2024, and is expected to reach USD 928.93 billion by 2029, growing at a CAGR of 8.39% during the forecast period (2024-2029). In terms of shipment volume, the market is expected to grow from 0.82 trillion units in 2024 to 1.15 trillion units by 2029, at a CAGR of 7.02% during the forecast period (2024-2029).
Semiconductor devices are typically manufactured through a complex process called semiconductor fabrication or integrated circuit (IC) manufacturing. This process involves precise manipulation of the semiconductor material to create components with specific electrical behavior.
• Semiconductor devices are the backbone of modern electronics, powering everything from smartphones & computers to medical devices and renewable energy systems. One of the primary advantages of semiconductor devices is their small size and compactness.
• Unlike older vacuum tube technology, which requires large and bulky components, semiconductor devices can be manufactured in extremely small sizes. This miniaturization has allowed for the development of portable and wearable electronics that are lightweight and easy to carry, such as smartphones, fitness trackers, and smartwatches.
• The semiconductor devices market has witnessed a significant transformation in recent years due to the increasing adoption of advanced technologies like AI and IoT. These advanced technologies have paved the way for revolutionary changes in various industries, ranging from healthcare to automotive, and have opened up new avenues for the semiconductor devices market.
• The explosive growth of data consumption is one of the primary market drivers of 5G. With the proliferation of connected devices, smartphones, and IoT applications, people generate an enormous amount of data daily. 5G's higher bandwidth and capacity will support this surge in data consumption, enabling seamless connectivity for users.
• Moreover, the semiconductor supply chain is a complex network of interconnected stages involving design, manufacturing, testing, and distribution. The process begins with chip design, followed by wafer fabrication, assembly, and testing. Finally, the chips are distributed to original equipment manufacturers (OEMs) who use them in various electronic devices. The surge in demand for electronic devices, driven by trends like remote working, e-commerce, and 5G adoption, has outpaced the supply capacity of semiconductor manufacturers. This increased demand has strained the entire supply chain, leading to shortages.
• One of the significant aftereffects of the outbreak of COVID-19 is the increased usage of data. Moreover, it presented new opportunities for growing data generation due to increased remote working environments; various data center vendors consistently invest in new data centers in line with the insatiable need for data. According to the National Association of Software and Service Companies (NASSCOM), India's data center market investment is anticipated to reach approximately USD 4.6 billion in 2025.
Semiconductor Device Market Trends
Communication Industry to be the Largest End User
- Semiconductors play a pivotal role in wired communications, encompassing ethernet controllers, adapters, and switches. They feature Power over Ethernet (PoE) interface controllers, crucial for supporting Voice over Internet Protocol (VoIP), alongside powerline transceivers.
- In wireless communication, semiconductors are used in microwave, infrared, satellite, broadcast radio, mobile communications systems, Wi-Fi, and technologies such as Bluetooth and Zigbee. System-on-chip (SoC) and field-programmable gate array (FPGA) devices drive the evolution of wireless communication systems, notably 5G. Meanwhile, low-energy microcontrollers (MCUs) are pivotal in enhancing Bluetooth functionalities. Wireless sensor networks find applications in diverse fields, from environmental and structural monitoring to asset tracking.
- The market for semiconductors that power wireless communication is undergoing significant change with the increasing implementation of 5G. According to the GSMA, in 2025, the share of 5G mobile connections of total connections in South Korea and Japan are anticipated to account for 73% and 68%, respectively. Further, 95% of mobile connections will be 5G by 2030 in GCC states and 93% in Asia. The increasing adoption of 5G smartphones and networks creates new market opportunities.
- According to 5Gamericas.org, in 2023, the global count of fifth-generation (5G) subscriptions hit an estimated 1.9 billion, projected to soar to 8 billion by 2028. Compared to its predecessors, 5G technology boasts faster download speeds and significantly lower latency.
China to Witness Significant Growth
- Over the years, China's semiconductor industry has rapidly expanded and become one of the largest consumers of chips in the world. China aims to reduce its dependence on imported semiconductor components by developing a robust domestic supply chain.
- For instance, in May 2024, China established the third phase of a government-supported investment fund to expand its domestic semiconductor industry, which is the most significant phase to date. This move highlights China's determination to achieve self-sufficiency in light of US sanctions.
- The fund has a total registered capital of CNY 344 billion (USD 47.5 billion). The China Integrated Circuit Industry Investment Fund offers funding to the country's top two chip foundries, Semiconductor Manufacturing International Corporation and Hua Hong Semiconductor, and a few smaller companies.
- Moreover, the rapid growth of the consumer electronics industry, the government's efforts to promote domestic manufacturing and reduce reliance on foreign technology, which have led to increased investment in semiconductor production facilities, the rise of emerging technologies, such as artificial intelligence and internet of things, and the increasing demand for electric vehicles.
- The robust telecom industry in China is also a significant market driver. For instance, according to the National Bureau of Statistics of China, in March 2023, China generated a cumulative revenue of about CNY 151 billion (20.79 USD Billion) from its telecommunications industry. It had a year-on-year growth rate of approximately 4.8% that month.
Semiconductor Device Industry Overview
The semiconductor device market is semi-consolidated. It fluctuates with growing consolidation, technological advancement, and geopolitical scenarios. In addition to this increasing vertical integration of Foundries and IDMs, intense competition in the market studied is expected to rise, considering their ability to invest, which results from their revenues. Some players include Intel Corporation, Nvidia Corporation, Kyocera Corporation, Qualcomm Incorporated, and STMicroelectronics NV.
• March 2024 - Amazon Web Services and Nvidia announced the extension of their collaboration to advance Gen AI innovation. To help customers unlock advanced generative artificial intelligence capabilities, Blackwell will offer the NVIDIA GB200 Grace Blackwell super chip and B100 Tensor core GPUs, which will extend the long-standing strategic collaboration between the two companies to deliver the most secure and advanced infrastructure, software, and services.
• February 2024 - Intel Corporation unveiled Intel Foundry, a sustainable systems foundry tailored for the AI era. They also revealed an extended process roadmap to solidify their leadership well into the 2020s. The company emphasized strong customer backing and ecosystem support, with key partners like Synopsys, Cadence, Siemens, and Ansys, all geared to expedite chip design for Intel Foundry's clientele through advanced tools and design flows.
Semiconductor Device Market Leaders
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Intel Corporation
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Nvidia Corporation
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Kyocera Corporation
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Qualcomm Incorporated
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STMicroelectronics NV
*Disclaimer: Major Players sorted in no particular order
Semiconductor Device Market News
- January 2024 - Intel introduced its latest offering, the Intel® Core 14th Gen mobile processor family. Spearheading this release is the flagship Intel® Core i9-14900HX, boasting an impressive 24 cores and promising the pinnacle of mobile experiences for enthusiasts. Additionally, Intel rolls out its full range of Intel Core 14th Gen desktop processors, available in both 65-watt and 35-watt configurations. These processors cater to a broad spectrum of devices, from mainstream desktops to all-in-one and edge devices.
- January 2024 - Nvidia announced the GeForce RTX 40 SUPER Series family of GPUs, including the GeForce RTX 4080 SUPER, GeForce RTX 4070 Ti SUPER, and GeForce RTX 4070 SUPER. These supercharge the latest games and form the core of AI-powered PCs. This newest iteration of NVIDIA Ada Lovelace architecture-based GPUs delivers up to 52 shader TFLOPS, 121 RT TFLOPS, and 836 AI TOPS to supercharge gaming and provide the power to develop new entertainment worlds and experiences.
Semiconductor Device Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Technological Trends
4.3 Industry Value Chain/Supply Chain Analysis
4.4 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Buyers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitutes
4.5.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Adoption of Technologies like IoT and AI
5.1.2 Increased Deployment of 5G and Rising Demand for 5G Smartphones
5.2 Market Challenges
5.2.1 Supply Chain Disruptions Resulting in Semiconductor Chip Shortage
6. MARKET SEGMENTATION
6.1 By Device Type
6.1.1 Discrete Semiconductors
6.1.2 Optoelectronics
6.1.3 Sensors
6.1.4 Integrated Circuits
6.1.4.1 Analog
6.1.4.2 Logic
6.1.4.3 Memory
6.1.4.4 Micro
6.1.4.4.1 Microprocessors (MPU)
6.1.4.4.2 Microcontrollers (MCU)
6.1.4.4.3 Digital Signal Processors
6.2 By End-user Vertical
6.2.1 Automotive
6.2.2 Communication (Wired and Wireless)
6.2.3 Consumer
6.2.4 Industrial
6.2.5 Computing/Data Storage
6.2.6 Government (Aerospace and Defense)
6.3 By Geography
6.3.1 United States
6.3.2 Europe
6.3.3 Japan
6.3.4 China
6.3.5 Korea
6.3.6 Taiwan
6.3.7 Rest of the World
7. SEMICONDUCTOR FOUNDRY LANDSCAPE
7.1 Foundry Business Revenue and Market Shares by Foundries
7.2 Semiconductor Sales - IDM vs Fabless
7.3 Wafer Capacity By End of December 2021 Based on Fab Location
7.4 Wafer Capacity By Top 5 Semiconductor Companies and an Indication of Wafer Capacity by Node Technology
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles*
8.1.1 Intel Corporation
8.1.2 Nvidia Corporation
8.1.3 Kyocera Corporation
8.1.4 Qualcomm Incorporated
8.1.5 STMicroelectronics NV
8.1.6 Micron Technology Inc.
8.1.7 Advanced Micro Devices Inc.
8.1.8 NXP Semiconductors NV
8.1.9 Toshiba Corporation
8.1.10 Texas Instruments Inc
8.1.11 Analog Devices Inc.
8.1.12 SK Hynix Inc.
8.1.13 Samsung Electronics Co. Ltd
8.1.14 Fujitsu Semiconductor Ltd
8.1.15 Rohm Co. Ltd
8.1.16 Infineon Technologies AG
8.1.17 Renesas Electronics Corporation
8.1.18 Wolfspeed Inc.
8.1.19 Broadcom Inc.
8.1.20 ON Semiconductor Corporation
9. FUTURE OUTLOOK OF THE MARKET
Semiconductor Device Industry Segmentation
Semiconductor devices are electronic components made from semiconductor materials that exhibit unique electrical properties. Semiconductor materials, such as silicon and germanium, have the unique characteristic of conducting electricity under certain conditions. Unlike conductors (like metals) that easily allow the flow of electrons and insulators (like rubber) that resist the flow of electrons, semiconductors have conductivity that can be controlled.
The market is defined by the revenue generated from sales of semiconductor devices like discrete semiconductors, optoelectronics, sensors, and integrated circuits comprising analog, logic, memory, and micro-integrated circuits employed in various end-user verticals like automotive, communication (wired, wireless), consumer, industrial, computing/data storage, government (aerospace & defense), etc., across various countries like United States, Europe, Japan, China, Korea, Taiwan, and Rest of the World.
The semiconductor device market is segmented by device type (discrete semiconductors, optoelectronics, sensors, integrated circuits (analog, logic, memory, micro [microprocessors (MPU), microcontrollers (MCU), digital signal processors]), by end-user application (automotive, communication (wired and wireless), consumer, industrial, computing/data storage, government (aerospace and defense)), and geography (United States, Europe, Japan, China, Korea, Taiwan, Rest of the World). The report offers market forecasts and size in volume (units) and value (USD) for all the above segments.
| By Device Type | ||||||||||
| Discrete Semiconductors | ||||||||||
| Optoelectronics | ||||||||||
| Sensors | ||||||||||
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| By End-user Vertical | |
| Automotive | |
| Communication (Wired and Wireless) | |
| Consumer | |
| Industrial | |
| Computing/Data Storage | |
| Government (Aerospace and Defense) |
| By Geography | |
| United States | |
| Europe | |
| Japan | |
| China | |
| Korea | |
| Taiwan | |
| Rest of the World |
Semiconductor Device Market Research FAQs
How big is the Global Semiconductor Device Market?
The Global Semiconductor Device Market size is expected to reach USD 621.01 billion in 2024 and grow at a CAGR of 8.39% to reach USD 928.93 billion by 2029.
What is the current Global Semiconductor Device Market size?
In 2024, the Global Semiconductor Device Market size is expected to reach USD 621.01 billion.
Who are the key players in Global Semiconductor Device Market?
Intel Corporation, Nvidia Corporation, Kyocera Corporation, Qualcomm Incorporated and STMicroelectronics NV are the major companies operating in the Global Semiconductor Device Market.
What years does this Global Semiconductor Device Market cover, and what was the market size in 2023?
In 2023, the Global Semiconductor Device Market size was estimated at USD 568.91 billion. The report covers the Global Semiconductor Device Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Global Semiconductor Device Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Semiconductor Devices Industry Report
Statistics for the 2023 Semiconductor Devices market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Semiconductor Devices analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
