Global Semiconductor Devices Market Report and Forecast 2024-2032

Global Semiconductor Devices Market Size

The global semiconductor devices market was approximately USD 645.84 billion in 2023. The market is assessed to grow at a CAGR of 8.2% between 2024 and 2032, reaching a value of USD 1312.71 billion by 2032.

Semiconductor Devices Market Growth

A semiconductor is an element, or a substance generally found in electrical circuits and components/parts that conduct electricity to some extent, enabling electrons to travel throughout the circuit when a certain level of voltage is applied. Typically made of silicon crystals, they are used in integrated circuits and electrical components like diodes and transistors. They are helpful in converting alternating current into direct current and vice versa.

Semiconductor devices are crucial for the development of powerful batteries in electronic vehicles. The rising adoption of electric vehicles due to increasing environmental awareness is increasing the semiconductor devices market value. The integration of semiconductor into electric vehicles’ design facilitates the development of advanced driver assistance systems like collision avoidance, automated parking, and lane departure warning systems.

Real time applications including video streaming, online gaming, and financial transactions require high speed data and consumer electronics, propelling the requirement for semiconductor devices across the globe. With the rising digitalisation across various sectors and increasing smartphone penetration, the semiconductor devices market demand is expected to grow significantly over the forecast period.

Semiconductor Devices Market Trends

Semiconductor devices such as diodes, transistors, and integrated circuits are used in digital, analogue, sonic, ultrasonic, radio, and optical wireless communications extensively. This allows individuals to talk over long distances, listen to news on radio, and track fatal targets undersea. With the growing reliance on wireless communication technology in the defence sector such as by naval forces, the semiconductor devices demand is expected to rise in the coming years.

With increasing innovations in the consumer electronics sector, the demand for integrated circuits is rising. Integrated circuits constitute a small electronic device that is used in a wide range of products like computers, mobile phones, laptops, and tablets. They are also used in medical equipment like heart monitors and pacemakers to prevent them from malfunctioning.

Recent Developments

Amazon Web Services and Nvidia announced in March 2024 that they will be extending their partnership to leverage the new NVIDIA Blackwell GPU platform to drive innovation in Gen AI. In order to help customers unlock new generative artificial intelligence (AI) capabilities, AWS will now offer the NVIDIA GB200 Grace Blackwell Superchip and B100 Tensor Core GPUs, expanding their long-standing strategic collaboration. Together, the companies will deliver the most advanced and secure infrastructure, software, and services.

Industry Outlook

Semiconductors are the essential enabling technology that supports innovation in almost every product category in the economy. As per semiconductor devices industry analysis, the semiconductor industry saw an 8.2% fall in global revenue to $526.9 billion in 2023 due to normal market cyclicality, following a record total of $574.1 billion in chip sales in 2022. But by the second half of last year, sales in the sector had consistently increased year over year and month over month, indicating the beginning of the current cycle.

The PC/computer and communication end markets continued to account for the highest share of semiconductor sales in 2023, according to the World Semiconductor Trade Statistics (WSTS) organization's 2023 Semiconductor End-Use Survey. However, sales to the communications sector grew by 2 percentage points, while sales of PCs and computers fell to 25% of total sales. In the meantime, the automotive industry saw the biggest increase in its percentage of chip sales, moving up to the third position as the largest end use market in 2023.

The Semiconductor Industry Association (SIA) also announced that the sales of semiconductors worldwide reached $49.1 billion in May 2024, up 4.1% from April 2024's total of $47.2 billion and 19.3% from May 2023's total of $41.2 billion.

According to a analysis done by McKinsey, the automotive and industrial sectors would account for 14% and 12% of the average growth in chip sales by 2030, respectively, fueling demand growth throughout the decade and increasing the semiconductor devices industry revenue.

In an effort to support the growth of its own chip industry, China has recently established the largest-ever semiconductor investment fund in the nation. Tianyancha, an online platform that compiles official company registration information, reports that the third phase of the National Integrated Circuit Industry Investment Fund has received 344 billion yuan ($47.5 billion) from the central government and a number of state-owned banks and enterprises, including Industrial & Commercial Bank of China Ltd. As tensions with the US rise, a new investment vehicle, dubbed Big Fund III, highlights a renewed push by Xi Jinping's government to develop its own chip industry.

Semiconductor Devices Industry Segmentation

Based on type, the market is bifurcated into intrinsic semiconductors and extrinsic semiconductors. On the basis of device type, the market is divided into discrete semiconductors, optoelectronics, sensors, and integrated circuits. Based on end use, the market segmentation includes automotive, communication, consumer electronics, industrial, and computing/ data storage, among others. The major regional markets for semiconductor devices include North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global semiconductor devices market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.

• Intel Corp.

• Samsung Electronics Co., Ltd.

• Broadcom Inc.

• Fujitsu Limited

• Toshiba Corporation

• KYOCERA Corporation

• STMicroelectronics International N.V. 

• NXP Semiconductors N.V.

• Texas Instruments Incorporated

• Taiwan Semiconductor Manufacturing Company (TSMC) Limited 

• Others

Semiconductor Devices Market Share by Type

As per the semiconductor devices market analysis, the demand for extrinsic semiconductors is expected to increase as they boast higher electrical conductivity compared to intrinsic semiconductors, and after the introduction of impurities into their silicon structure, extrinsic semiconductors become fit for manufacturing various devices for practical applications. This includes photovoltaic cells, LEDs, and semiconductor lasers, among others. N-type extrinsic semiconductors are doped with elements like arsenic, phosphorous, and germanium, which enhances the device’s conductivity power while p-type extrinsic semiconductors are doped with boron or gallium which allows electric current to move along in one direction only in a closed-circuit system. Their increasing applicability across a wide range of devices is expected to boost their demand over the forecast period.

Semiconductor Devices Market Regional Analysis

The Asia Pacific accounts for a significant share in semiconductor devices market. The major countries that manufacture semiconductor devices include Taiwan, South Korea, Japan, and China. The presence of a strong supply chain network and high-end wafer manufacturing technologies is the major factor driving the market growth in the region.

On the other hand, North America is witnessing significant growth and accounts for a sizable portion of the world’s semiconductor chip manufacturing capacity. The increasing efforts by the government of the United States towards actively expanding the domestic capabilities for semiconductor device manufacturing are boosting the semiconductor devices demand growth.

Increasing Demand for Advanced Electronic Devices and Technological Advancements Strengthening the Global Semiconductor Devices Market

• Growing demand for advanced electronic devices driven by the proliferation of IoT, AI, and 5G technologies.

• Technological advancements in semiconductor manufacturing processes for higher efficiency and miniaturisation.

• As per semiconductor devices market dynamics and trends, expansion of cloud computing and data centres is boosting the need for high-performance semiconductor components.

• Established market presence of key players with robust capabilities in research and development.

• Increasing investments in smart infrastructure and automation fuelling demand for semiconductors.

High Costs and Infrastructure Limitations Weakening the Global Semiconductor Devices Market

• High operational costs associated with semiconductor fabrication and cleanroom facilities.

• Limited access to advanced manufacturing equipment in certain regions, hinders production capabilities along with the growth of the semiconductor devices market.

• Dependence on a stable power supply and precise environmental control for consistent product quality.

• Challenges in maintaining supply chain resilience amid geopolitical tensions and trade restrictions.

• Customer expectations for sustainable and energy-efficient semiconductor devices.

• Economic factors influencing pricing strategies and profitability amidst market volatility.

Advancements in the Global Semiconductor Devices Market

• Development of advanced semiconductor materials and fabrication techniques for enhanced performance.

• Integration of AI and machine learning in semiconductor design and manufacturing for improved efficiency will likely support the semiconductor devices demand forecast.

• Deployment of quantum computing technologies driving innovation in semiconductor applications.

• Innovation in flexible and wearable semiconductor devices to cater to diverse consumer preferences.

• Investment in nanotechnology for next-generation semiconductor development is providing several semiconductor devices market opportunities.

• Growth of semiconductor foundry services and custom chip design solutions.

• Partnerships with automotive and consumer electronics companies to develop specialized semiconductor products.

Key Indicators of Prices for Semiconductor Devices Include:

1.    Demand and Supply Dynamics: Fluctuations in the balance between supply and demand significantly influence semiconductor prices. High demand coupled with supply constraints often leads to price increases, whereas excess supply can drive prices down.

2.    Raw Material Costs: Prices of essential raw materials like silicon, rare earth metals, and other chemical components impact the overall cost of semiconductors. Any increase in these input costs generally translates to higher semiconductor prices.

3.    Technological Advancements: The introduction of new technologies and manufacturing processes, such as smaller node sizes (e.g., moving from 7nm to 5nm technology), can affect prices. While newer technologies might initially be more expensive, they can lead to cost reductions in the long term due to efficiency gains and negatively impact the semiconductor devices market share.

4.    Market Demand for Electronics: The demand for consumer electronics, automotive electronics, and industrial applications drives semiconductor prices. High demand in sectors like smartphones, laptops, and electric vehicles typically leads to higher prices.

5.    Geopolitical Factors: Trade policies, tariffs, and international relations can affect semiconductor prices. For example, trade tensions between major economies like the US and China can lead to price volatility.

6.    R&D and Capital Expenditures: Investments in research and development and capital expenditures for expanding production capabilities can impact prices. High R&D costs might lead to higher initial prices but can also result in more efficient production techniques.

7.    Regulatory Environment: Government regulations and policies related to environmental standards, labor laws, and industry-specific regulations can affect the cost structure and pricing of semiconductors, thereby affecting the semiconductor devices market revenue.

8.    Innovation Cycles: The pace of innovation and the introduction of new semiconductor products or enhancements can lead to price adjustments. Rapid innovation cycles may result in frequent price changes.

Competitive Landscape

Intel Corp. was founded in 1968 and is headquartered in California, United States. It is one of the biggest manufacturers of central processing systems and semiconductors across the globe. The company has multiple business segments, including Data Center Group, Mobileye, Non-Volatile Memory Solutions Group, Programmable Solutions Group, and Client Computing Group, among others. The company’s product portfolio includes a wide range of computer parts such as Habana (AI processor) and Optane persistent memory.

Taiwan Semiconductor Manufacturing Company (TSMC) Limited was founded in 1987 and is headquartered in Hsin-Chu Science Based Industrial Park in Taiwan. It is traded under the ticker symbol TSM in the New York Stock Exchange and is the world’s biggest integrated circuits foundry. It has established its manufacturing, sales, and engineering facilities in countries like the United States and Japan with a significant presence in Europe as well, thus increasing the demand of semiconductor devices market.

KYOCERA Corporation was established in April 1959 and is headquartered in Kyoto, Japan. It manufactures semiconductor packages, industrial ceramics, electronic parts, equipment for medical implants, and telecommunication tools, among other products. It has four main business segments which focus independently on information and communications, automotives, environment and energy, and healthcare. The high resolution aerial display is one of the key areas of its ongoing research projects by which it aims to transform the consumer experience in museums and retail stores.

Other key players in the global market for semiconductor devices include Samsung Electronics Co., Ltd., Broadcom Inc., Fujitsu Limited, Toshiba Corporation, STMicroelectronics International N.V., NXP Semiconductors N.V., and Texas Instruments Incorporated, among others.

Key Highlights of the Report

Semiconductor Devices Market Report Snapshots

Semiconductor Devices Market Size

Semiconductor Devices Market Growth

Semiconductor Devices Market Trends

Semiconductor Devices Companies

Semiconductor Devices Market Regional Analysis