United States Integrated Circuits Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 134.44 Billion |
| Market Size (2029) | USD 214.21 Billion |
| CAGR (2024 - 2029) | 9.77 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
United States Integrated Circuits Market Analysis
The United States Integrated Circuits Market size is estimated at USD 134.44 billion in 2024, and is expected to reach USD 214.21 billion by 2029, growing at a CAGR of 9.77% during the forecast period (2024-2029).
- The integrated circuits market in the United States is witnessing significant growth, driven by a combination of technological advancements, market demands, and economic factors. The rising demand for consumer electronics like smartphones, tablets, laptops, and smart home devices is a major factor driving the demand for integrated circuits. As these devices become more sophisticated, they require advanced ICs to support enhanced functionalities, connectivity, and performance. Continuous innovation in consumer electronics fuels the need for more powerful and efficient integrated circuits.
- In addition, the automotive industry is undergoing a transformation with the rise of electric vehicles. EVs rely heavily on integrated circuits for various applications, including battery management systems, power electronics, and advanced driver assistance systems. As the US government and consumers increasingly prioritize sustainability and energy efficiency, the demand for ICs in the automotive sector is expected to grow significantly.
- According to estimates from Kelley Blue Book, a Cox Automotive company, a record-breaking 1.2 million US vehicle buyers opted for electric vehicles (EVs) last year. Specifically, 1,189,051 new EVs were serviced as the gradual transition toward an electrified future persisted. In 2023, the EV share of the total US vehicle market stood at 7.6%, based on Kelley Blue Book estimates, marking an increase from 5.9% in 2022. This substantial growth in EV adoption within the region is poised to significantly bolster the overall EV ecosystem.
- ICs are expected to perform a wide range of complex functions. The demand for more state-of-the-art features and capabilities in electronic devices grows as technology advances. Designers need to incorporate complex circuits and algorithms to meet these requirements. This increased functionality leads to larger and more intricate designs, making it challenging to manage and optimize the complex interactions between different components.
- Geopolitical challenges, including the Russian invasion of Ukraine, China-US competition, elections, and the war in Israel, significantly impact the global supply chain, especially critical raw materials vital for traditional industries, defense, high-tech sectors, aerospace, and green energy. The Russia-Ukraine war and economic slowdown caused significant disruption in the semiconductor industry. The increased inflation and interest rates reduced consumer spending, hampered the industry’s demand, and led to slow growth in the integrated circuit market.
United States Integrated Circuits Market Trends
Logic ICs are Expected to Hold a Significant Market Share
- Digital logic circuits are specifically designed to perform digital logic functions. They are used in various applications across sectors, making them essential for processing and manipulating binary data. Logic ICs enable the implementation of digital systems and provide the basis for modern electronic devices, from simple logic gates to complex microprocessors.
- Logic ICs are the widely adopted component in the overall IC market and are expected to witness significant growth during the forecast period. Logic chips have a wide range of applications in almost every digital product, from smartphones to arithmetic-logic units (ALU). In recent years, the growth in the automotive and smartphone industries has mainly driven the growth of the logic semiconductor component. However, the growth in applications like HPC and AI is now expanding the scope of logic components.
- The advent of the IoT and IIoT has largely impacted the design and size of electronics, with the introduction of technologies like smart homes, offices, wearables, remote monitoring, and control. Moreover, OEMs and designers consider miniaturization a primary focus while creating wearable technologies.
- Another advancement that demands miniaturized electronic components is portable electronic equipment, which requires smaller and thinner semiconductor systems for saving space and miniaturization. Due to highly integrated, high-speed applications like aerospace and electric vehicles, the demand for improved electrical performance to minimize noise effects is also evident. As a result of these considerations when designing end products, logic IC components are becoming increasingly important in developing advanced electronic systems.
- Consumer electronics devices such as smartphones, televisions, gaming consoles, and smart home devices rely on digital processing. Logic ICs, specifically digital logic ICs, are designed to process and manipulate digital signals and perform logical operations. They are essential for data storage, arithmetic calculations, control functions, and signal routing. Due to the growing adoption of these devices, the demand for logic ICs is projected to grow.
- As per the Consumer Technology Association, based on the projected retail sales for 2024, consumer electronics retail sales in the United States will reach USD 512 billion.
Automotive Industry is Expected to Have a Significant Market Growth
- The United States is one of the major hubs for the automotive industry. Notable automotive giants, including Honda, Toyota, Ford, Chevrolet, and Tesla, have established a strong presence in the region. Renowned for its advancements in automation, the region is paving the way for new opportunities for local vendors. Projections from the Center for Automotive Research (CAR) indicate that US motor vehicle production is set to hit approximately 11.7 million units by 2025.
- The transition to electrification in the automotive industry is driving the market’s growth. The United States, one of the largest markets for electric vehicles, has experienced rapid growth in EV sales in recent years. According to the IEA, electric vehicle sales reached 1.6 million units in 2023, up from 1 million units in 2022, marking a significant 60% increase.
- The US government has set ambitious targets for reducing greenhouse gas emissions and improving fuel efficiency standards, encouraging automobile manufacturers to increase EV offerings. For instance, in 2024, according to IEA, approximately 1 of every nine automobiles sold in the United States is expected to be electric. By 2030, one of every three cars in the United States will be electric. Thus, the emphasis on sustainability and energy efficiency in EV production drives innovation in semiconductor device manufacturing.
- Over the last decade, the automotive landscape has undergone significant transformations in production and sales. As per BEA, in 2023, approximately 1.7 million automobiles were produced in the United States. This represents an increase of about two percent compared with the previous year.
United States Integrated Circuits Industry Overview
The United States integrated circuit market is consolidated and features key players like Intel Corporation, Texas Instruments, Analog Devices Inc., and STMicroelectronics. Market participants strategically leverage partnerships and acquisitions to bolster their product portfolios and establish a sustainable competitive edge.
• In April 2024, Advanced Micro Devices Inc. and Nvidia Corp. announced the launching of new processors for AI PCs. In an announcement, AMD unveiled a pair of new central processing units optimized for AI PCs to take on rivals such as Nvidia and Intel Corp., which both offer a range of silicon chips with embedded AI processing capabilities. According to AMD, the new chips will extend its leadership in AI PCs. They leverage a combination of CPUs, GPUs, and dedicated on-chip neural processing units or NPUs to provide dedicated AI processing power that’s said to exceed the company’s earlier generation Ryzen chips. Nvidia also announced the launch of two new graphics processing units in its RTX family of Ampere-based desktop GPUs.
• In February 2024, Intel launched its new vPro platform with Intel Core Ultra laptop processors that will form the foundation for mobile workstations from Dell, HP, Lenovo, and others. Mobile workstations from major OEMs will also ship with a new dedicated Intel Arc Pro workstation graphics driver, which comes with Independent Software Vendor (ISV) certifications and ‘enhanced performance optimizations’ for creative, design, and engineering software.
United States Integrated Circuits Market Leaders
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Intel Corporation
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Texas Instruments Inc
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Analog Devices Inc
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Infineon Technologies AG
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STMicroelectronics N.V.
*Disclaimer: Major Players sorted in no particular order
United States Integrated Circuits Market News
- April 2024 - Micron Technology Inc. announced the launch of its latest innovation - the Micron Serial NOR Flash Memory. The product is designed to provide enhanced performance and reliability for various applications, from automotive and industrial to consumer electronics.
- January 2024 - At CES 2024, Qualcomm Technologies Inc. and Robert Bosch GmbH have introduced the automotive industry's first central vehicle computer. This groundbreaking system-on-chip (SoC) integrates both infotainment and advanced driver assistance system (ADAS) functionalities. Built on Qualcomm Technologies’ leadership in digital cockpit and ADAS compute platforms, the Flex SoC is designed to support mixed-criticality workloads, allowing digital cockpit, ADAS, and automated driving (AD) capabilities to be co-implemented on a single SoC.
United States Integrated Circuits 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 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Penetration of Smartphones, Tablets and Consumer Electronics
5.1.2 Rising Capital Spending by Fabs to Increase Production Capacities
5.2 Market Restraint
5.2.1 Complex Fabrication Process owing to the Decreasing Chip Size
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Analog IC
6.1.2 Logic IC
6.1.3 Memory
6.1.4 Micro
6.1.4.1 Microprocessors (MPU)
6.1.4.2 Microcontrollers (MCU)
6.1.4.3 Digital Signal Processors
6.2 By End-user Industry
6.2.1 Consumer Electronics
6.2.2 Automotive
6.2.3 IT & Telecommunications
6.2.4 Manufacturing & Automation
6.2.5 Other End-user Industries (Healthcare, Aerospace & Defense, etc.)
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Intel Corporation
7.1.2 Texas Instruments Inc
7.1.3 Analog Devices Inc
7.1.4 Infineon Technologies AG
7.1.5 STMicroelectronics N.V.
7.1.6 NXP Semiconductors N.V.
7.1.7 On Semiconductor Corporation
7.1.8 Microchip Technology Inc
7.1.9 Renesas Electronics Corporation
7.1.10 MediaTek Inc.
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
United States Integrated Circuits Industry Segmentation
Integrated circuits (ICs) are compact electronic devices that integrate multiple components—such as transistors, resistors, capacitors, and diodes—onto a single piece of semiconductor material, typically silicon. This integration facilitates the creation of complex circuits capable of performing various functions within a small physical footprint.
For market estimation, the revenue generated from sales of various types of integrated circuits that are used in various industries, such as consumer electronics, automotive, IT & telecommunication, manufacturing, and automation, across the United States are being tracked.
The United States integrated circuits market is segmented by type (analog IC, logic IC, memory, and micro [microprocessor, microcontrollers, and digital signal processors]), end-user industry (consumer electronics, automotive, IT & telecommunications, and manufacturing and automation). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | |||||
| Analog IC | |||||
| Logic IC | |||||
| Memory | |||||
|
| By End-user Industry | |
| Consumer Electronics | |
| Automotive | |
| IT & Telecommunications | |
| Manufacturing & Automation | |
| Other End-user Industries (Healthcare, Aerospace & Defense, etc.) |
United States Integrated Circuits Market Research FAQs
How big is the United States Integrated Circuits Market?
The United States Integrated Circuits Market size is expected to reach USD 134.44 billion in 2024 and grow at a CAGR of 9.77% to reach USD 214.21 billion by 2029.
What is the current United States Integrated Circuits Market size?
In 2024, the United States Integrated Circuits Market size is expected to reach USD 134.44 billion.
Who are the key players in United States Integrated Circuits Market?
Intel Corporation, Texas Instruments Inc, Analog Devices Inc, Infineon Technologies AG and STMicroelectronics N.V. are the major companies operating in the United States Integrated Circuits Market.
What years does this United States Integrated Circuits Market cover, and what was the market size in 2023?
In 2023, the United States Integrated Circuits Market size was estimated at USD 121.31 billion. The report covers the United States Integrated Circuits Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United States Integrated Circuits Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
United States Integrated Circuits Industry Report
Statistics for the 2024 United States Integrated Circuits market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United States Integrated Circuits analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
United States Integrated Circuits Market Report Snapshots
