Global Semiconductors Market Insights Forecasts to 2033

• The Global Semiconductors Market Size was Valued at USD 611.56 Billion in 2023.
• The Market is Growing at a CAGR of 6.27% from 2023 to 2033.
• The Worldwide Semiconductors Market is Expected to reach USD 1123.44 Billion by 2033.
• North America is Expected to Grow the fastest during the forecast period.

The Global Semiconductors Market Size is expected to reach USD 1123.44 Billion by 2033, at a CAGR of 6.27% during the forecast period 2023 to 2033.

A semiconductor is an entity possessing particular electrical characteristics that enable it to function as the foundation for electronic gadgets and other technical apparatuses. It is typically a solid chemical element or compound that conducts electricity in some situations but not in others. This makes it an excellent medium for controlling electrical current and household electrical appliances. For instance, Tata Electronics starts building India's first semiconductor fab. In February 2024, the Indian government approved Tata Electronics Rs. 91,000 crores bid to build the semiconductor fab, following an invitation for proposals to kickstart a Make in India semiconductor ecosystem. The plant is expected to produce chips for both domestic and export markets. The Tata Group says the plant will use next-generation factory automation tools and machine learning to improve efficiency. Tata Electronics has laid the groundwork for India's first semiconductor fab, which will be built in Dholera, Gujarat, in collaboration with Taiwanese company Powerchip Semiconductor Manufacturing Corporation. The facility is described as cutting-edge, and AI-enabled, and Tata will produce microchips for high-demand industries such as automotive, AI, data storage, and wireless communication. Operations should begin in 2026, with a target manufacturing capacity of 50,000 wafers per month. Over 20,000 skilled jobs are expected to be created in the area.

Report Coverage

This research report categorizes the market for global semiconductors market based on various segments and regions forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global semiconductors market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the global semiconductors market.

Driving Factors

Semiconductors are the basic components of electronic devices used in a wide range of applications, including healthcare. The use of semiconductors in the healthcare sector is expected to increase as electronic devices in medical fields such as blood pressure monitors, home healthcare, clinical therapy and diagnostics, and others become more popular. Advanced medical devices and equipment, including MRI machines, CT scanners, and X-ray machines, rely heavily on semiconductor components to function. Semiconductors are required for processing and imaging capabilities, as well as the proper operation of these complex machines. In addition, China is expected to see high demand for mobile chips as a result of several well-known smartphone manufacturers, including Apple and OnePlus, establishing manufacturing and assembly plants. Furthermore, Taiwan's industry is experiencing significant growth, as evidenced by the number of Taiwanese personal computer manufacturers and their increasing investments in research and development. The country is also known for producing advanced technology-driven and compact integrated circuits, which provide lucrative growth opportunities for the market.

Restraining Factors

The United States has always been a major player in the market, so the industry depends heavily on it. The US began imposing trade restrictions with China in 2018 due to leadership changes. If the restrictions continue, China's market share is expected to decrease by approximately 16%. As a result, increasing tensions with China are expected to reduce the dominance of the US semiconductor market, with the focus shifting to Asia Pacific in the coming years. Furthermore, tariffs are imposed on almost all industrial goods and materials used in the production of chips. These tariffs affect component import and export, which has a direct impact on chip manufacturing costs.

Market Segmentation

By Component Insights

The memory devices segment dominates the market with the largest revenue share over the forecast period.

On the basis of component, the global semiconductors market is segmented into memory devices, logic devices, analogue ICs, MPUs, discrete power devices, MCUs, sensors, and others. Among these, the memory devices segment is dominating the market with the largest revenue share over the forecast period. With the advancement of more advanced technologies such as cloud computing and virtual reality, the demand for memory devices grows by the day and becomes increasingly integrated with the user's devices. Such as application-specific signal processors and application-specific integrated circuits, are expected to expand during the forecast period. All other subsegments are unlikely to remain stagnant; however, these segments are expected to drive growth in the global semiconductors market.

By Application Insights

The networking & communications segment is witnessing significant CAGR growth over the forecast period.

Based on the application, the global semiconductors market is segmented into networking & communications, and data processing. Among these, the networking & communications segment is witnessing significant growth over the forecast period. Particularly due to the growing demand for smartphones in both developing and developed countries. Consumer electronics, particularly gaming, has advanced to the point where semiconductors are necessary. The automobile industry is another growing segment. With several electric cars leading the automobile industry in recent years, their reliance on semiconductors has become irreplaceable, and it will remain so until cheaper alternatives are found in the global semiconductors market.

Regional Insights

Asia Pacific dominates the market with the largest market share over the forecast period.

Asia Pacific is dominating the market with the largest market share over the forecast period. China currently holds the largest share of the semiconductor market and is expected to grow at a moderate CAGR in the coming years, owing to the growing presence of local semiconductor component manufacturers. These local market players typically offer a diverse range of products at reduced prices in bulk. As a result, it will boost market growth in China during the forecast period. As the region's developing countries adopt high-end technology-based consumer goods, demand for semiconductors has recently increased. Technological advancements such as IoT and LTE are only expected to help the global semiconductors market grow in this region. China dominates the global semiconductors market and is expected to grow moderately over the forecast period.

North America is expected to grow the fastest during the forecast period. Increased investment in R&D activities. According to the Semiconductor Industry Association (SIA), the U.S. industry's R&D expenditures increased at a compound annual growth rate of approximately 6.6% between 1999 and 2019. Expenditures on R&D activities by US companies are consistently high, regardless of annual sales cycles, reflecting the importance of investing in R&D production. In 2019, R&D investments reached USD 39.8 billion. The region has a robust manufacturing sector, which includes automotive, aerospace, and industrial equipment, all of which rely heavily on semiconductors for automation, control systems, and cutting-edge features like IoT connectivity.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global semiconductors market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Market Players

• Micron Technology, Inc.
• SK Hynix Inc.
• NXP Semiconductors N.V.
• Intel Corporation
• Samsung Electronics Co., Ltd.
• Analog Devices, Inc.
• ON Semiconductor Corporation
• Renesas Electronics Corporation
• Taiwan Semiconductor Manufacturing Company Limited (TSMC)
• STMicroelectronics N.V.
• Infineon Technologies AG
• Advanced Micro Devices, Inc.
• MediaTek Inc.
• NVIDIA Corporation
• Xilinx, Inc.
• Sony Corporation
• Qualcomm Incorporated
• Broadcom, Inc.
• Texas Instruments
• Others

Key Market Developments

• On January 2024, Foxconn Technology Group and HCL Group have announced plans to form a joint venture (JV) to establish a semiconductor outsourced assembly and testing (OSAT) facility in India. Foxconn intends to invest $37.2 million, acquiring a 40% equity stake in the venture, according to Mint and The Economic Times. The move is intended to establish an OSAT facility to benefit India's semiconductor industry and strengthen supply chain resilience.

• On January 2024, Silvaco Group, Inc., a provider of TCAD, EDA software, and design IP, announced that it has joined GaN ValleyTM to advance the state-of-the-art in designing efficient gallium nitride (GaN) power devices and enable its customers to innovate with its Victory TCAD platform. Gallium nitride, a wide bandgap semiconductor with high electron mobility, is widely used in power electronics due to its superior performance characteristics.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the Global Semiconductors Market based on the below-mentioned segments:

Semiconductors Market, Component Analysis

• Memory Devices
• Logic Devices
• Analog IC
• MPU
• Discrete Power Devices
• MCU
• Sensors
• Others

Semiconductors Market, Application Analysis

• Networking & Communications
• Data Processing

Semiconductors Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa