In 2024, semiconductor sales were expected to reach ****** billion U.S. dollars worldwide. Forecasts for 2025 suggest the market will grow by **** percent to ****** billion U.S. dollars. Semiconductor market Semiconductors are an important component of many commonly used electronic devices including smartphones, tablets, and PCs. Notable semiconductor chip makers include Intel and Samsung Electronics, with Intel generating **** billion U.S. dollars and Samsung generating **** billion U.S. dollars in semiconductor revenue in 2023, placing them among the largest companies in terms of semiconductor industry revenues. Market opportunities Smartphones are expected to command a significant part of the semiconductor market going forward, especially as these devices become more advanced and able to support technologies such as augmented reality, virtual reality, 5G, and artificial intelligence. ​Semiconductors for use in servers and data centers are set to become an even more important opportunity, with semiconductor innovation required to support cloud data centers and the rise in edge computing.

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Semiconductor Market Size 2025-2029

The semiconductor market size is forecast to increase by USD 157.1 billion, at a CAGR of 4.5% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing adoption of Internet of Things (IoT) devices and the shift towards sustainability in manufacturing processes. IoT devices, which rely heavily on semiconductors for their functionality, continue to proliferate across various industries, from consumer electronics to industrial automation. This trend is expected to fuel the demand for semiconductors, particularly those that offer high performance, low power consumption, and connectivity capabilities. Simultaneously, there is a growing emphasis on sustainability in semiconductor manufacturing. Companies are adopting green manufacturing practices to reduce their carbon footprint and meet evolving regulatory requirements. This trend is likely to continue as consumers and governments demand more environmentally responsible production processes.
However, the market faces a significant challenge in addressing the supply-demand gap. The rapid growth in demand for semiconductors, particularly in the consumer electronics sector, has outpaced the industry's ability to produce enough chips to meet this demand. This imbalance is causing price volatility and supply chain disruptions, making it essential for companies to adopt agile supply chain strategies and explore alternative manufacturing solutions to mitigate these risks.

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The market continues to evolve, driven by the constant demand for more advanced and efficient semiconductor devices. Foundry services play a crucial role in producing these devices, from memory chips and silicon wafers to etching equipment and integrated circuits. Consumer electronics and data centers are major applications, with edge computing and quantum computing emerging as new frontiers. Heat dissipation remains a significant challenge as transistor density increases and power consumption grows. Moore's Law continues to unfold, pushing the industry to advanced nodes and AI chipsets. Thin film deposition and lithographic equipment are essential in the manufacturing process, while supply chain optimization and defect inspection are critical for yield optimization.

Raw materials, such as gallium arsenide and deposition materials, are continually refined to meet the demands of CMOS technology and process control. Semiconductor manufacturing encompasses a wide range of applications, from digital and analog circuits to mixed-signal circuits and logic gates. Industrial automation and cleanroom technology are integral to the production process, ensuring high die yield and transistor density. Power consumption and defect inspection remain ongoing concerns, with continuous innovation in deposition equipment and test and measurement solutions essential to addressing these challenges. The market's dynamic nature is reflected in the evolving patterns of market activities, with the industry continually pushing the boundaries of what is technologically possible.

How is this Semiconductor Industry segmented?

The semiconductor industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  N and C
  Data processing
  Industrial
  Consumer electronics
  Others


Product

  ICs
  Optoelectronics
  Discrete semiconductors
  Sensors


Semiconductor Materials

  Fabrication
  Pacakging


End-User

  OEMs
  Aftermarket
  Distributors


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    China
    India
    Japan
    South Korea
    Taiwan


  Rest of World (ROW)

.

By Application Insights

The N and C segment is estimated to witness significant growth during the forecast period.

The market experiences continuous evolution as technology advances and industries adopt more complex systems. Semiconductor devices, including analog circuits, digital circuits, memory chips, and integrated circuits, are essential components in various sectors. In the networking and communication (N&C) segment, semiconductor solutions are in high demand due to the increasing reliance on efficient communication and the surge in data demand from consumer electronics and IoT devices. Heat dissipation and power consumption are critical concerns in semiconductor manufacturing, leading to innovations in cooling technologies and power management systems. Foundry services play a vital role in producing high-qualit

In 2024, revenue from the global semiconductor industry amounted to just under *** billion U.S. dollars, an increase from the previous year when total revenue reached *** billion U.S. dollars. In 2025, semiconductor market revenues are expected to reach ***** billion U.S. dollars, a rise of **** percent.

In 2023, global semiconductor market was estimated at USD 630 Bn and is forecasted to reach a market size of USD 1240 Bn in 2029 driven by Electrification of transportation and the growth of the electric vehicle industry, increasing prevalence of wireless and portable electronics, and demand for specialized semiconductors in emerging technologies.

The Global Semiconductor Market was valued at USD 678.82 Billion in 2024 and is expected to reach USD 1554.76 Billion by 2030 with a CAGR of 14.81% through 2030.

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Market Size	2024: USD 678.82 Billion
Forecast Market Size	2030: USD 1554.76 Billion
CAGR	2025-2030: 14.81%
Fastest Growing Segment	Networking & Communication
Largest Market	North America
Key Players	1. Intel Corporation 2. Samsung Electronics Co., Ltd. 3. Taiwan Semiconductor Manufacturing Company Limited 4. NVIDIA Corporation 5. QUALCOMM Incorporated 6. Advanced Micro Devices, Inc. 7. Broadcom Inc. 8. Texas Instruments Incorporated

Semiconductor Device Market is Segmented by Device Type (Discrete Semiconductors, Optoelectronics, Sensors, and Integrated Circuits), Technology Node (<3nm, 3nm, 5nm, 7nm, 16nm, 28nm, and >28nm), Business Model (IDM, and Design/Fabless Vendor), End-User Vertical (Automotive, Communication - Wired, Consumer Electronics, and More), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa).

Global Semiconductor market size 2021 was recorded $505.749 Billion whereas by the end of 2025 it will reach $670.4 Billion. According to the author, by 2033 Semiconductor market size will become $1177.96. Semiconductor market will be growing at a CAGR of 7.3% during 2025 to 2033.

Semiconductor Industry Market is Segmented by Semiconductor Devices (Discrete Semiconductors, Optoelectronics, and More), Technology Node (< 3nm, 3nm, 5nm, 7nm, 16nm, 28nm, and >28nm), Business Model (IDM, and Design/ Fabless Vendor), End-User Industry (Automotive, Communication (Wired and Wireless), Consumer, Industrial, and More), and Geography (North America, South America, Europe, Asia-Pacific, and Middle East and Africa).

Global semiconductor manufacturers are experiencing rising demand from downstream consumer electronic, automobile, computer and industrial machinery companies as digital platform adoption and AI development have increased. Competition is rising globally, as the United States and Europe have made significant investments to catch up to Asian nations who lead in developing advanced 5nm and 3nm nodes. Despite the continuous increase in the need for chips, trade conflicts between the West and China, combined with economic disruptions, have led to supply chain inefficiencies, causing revenue to shrink at an expected CAGR of 1.1% to $1.1 trillion through the current period. A significant drop of 13.4% during 2023 stemmed from economic slowdowns in regions such as the UK and in 2024, revenue returned to growth, surging 3.3%. Profit will total 22.9% of revenue in 2024, declining due to the costly nature of developing smaller nodes. The commodity-like nature of semiconductors has fueled the industry's hectic growth pattern. As process nodes shrink, manufacturing has become increasingly more complex and challenging. Architects continuously adjust designs to accommodate miniaturization requirements while thermal management innovation is also becoming crucial. Through the outlook period, companies will develop more powerful semiconductors and bolster revenue. In particular, manufacturers will strive to meet smaller, more functional product requirements. The continued rise of the Internet of Things (IoT) systems and autonomous vehicles will strengthen demand for semiconductors and electrical parts. Revenue will swell at an expected CAGR of 3.7% to $1.3 trillion through 2029. Governments worldwide will continue to prioritize capacity investment, integrating AI and new manufacturing approaches into operations, especially as 2nm and sub-2nm node technology emerge. Potential conflicts with China threaten the stability of the industry however, as a full-scale invasion of Taiwan could lead to a collapse in the market.

Semiconductor Market Outlook

According to our latest research, the global semiconductor market size reached USD 595.2 billion in 2024, reflecting robust demand across various industries. The market is expected to grow at a CAGR of 7.1% from 2025 to 2033, with the market size projected to reach approximately USD 1,110.5 billion by 2033. This impressive growth trajectory is driven by rapid advancements in technology, increasing adoption of connected devices, and expanding applications in automotive, consumer electronics, and industrial automation sectors. As per our most recent findings, the semiconductor industry is undergoing a significant transformation fueled by digitalization, electrification, and the proliferation of artificial intelligence and Internet of Things (IoT) technologies.

The primary growth driver of the semiconductor market is the exponential increase in demand for consumer electronics and smart devices worldwide. With the advent of 5G connectivity, the integration of artificial intelligence, and the proliferation of IoT-enabled products, semiconductors have become the backbone of modern technology. The rise in disposable income, urbanization, and the digital transformation of economies are propelling the adoption of smartphones, tablets, wearables, and smart home devices, all of which require advanced semiconductor components. Additionally, the emergence of electric vehicles (EVs) and autonomous driving technologies is significantly increasing the consumption of power semiconductors, sensors, and microcontrollers, further fueling market expansion.

Another critical factor contributing to the semiconductor market’s growth is the escalating investment in research and development (R&D) by leading market players. Companies are focusing on miniaturization, energy efficiency, and performance enhancement to meet the evolving needs of various end-use industries. The transition towards advanced process nodes, such as 5nm and 3nm technologies, is enabling the development of more powerful and efficient chips. Furthermore, strategic collaborations, mergers & acquisitions, and government initiatives aimed at strengthening domestic semiconductor manufacturing capabilities are creating a conducive environment for market growth. Notably, the ongoing geopolitical tensions and supply chain disruptions have prompted nations to invest heavily in local semiconductor production, thereby reducing dependency on global supply chains.

The semiconductor market is also benefiting from the increasing adoption of automation and smart manufacturing across industrial sectors. The integration of robotics, machine learning, and data analytics in production processes is driving the demand for high-performance logic devices, analog ICs, and sensors. Industrial automation not only enhances operational efficiency but also ensures precision and reliability, which are critical in sectors such as healthcare, automotive, and aerospace. The trend towards Industry 4.0 and the implementation of smart factories are expected to further accelerate the demand for advanced semiconductor solutions over the forecast period.

Regionally, the Asia Pacific region continues to dominate the global semiconductor market, accounting for more than 55% of the total market share in 2024. This dominance is attributed to the presence of leading semiconductor manufacturers, robust electronics manufacturing infrastructure, and strong government support for technological innovation. North America and Europe are also significant contributors, driven by the presence of major technology companies, high R&D investments, and increasing demand for automotive and industrial applications. Meanwhile, emerging markets in Latin America and the Middle East & Africa are witnessing steady growth, supported by rising digitalization and the adoption of advanced electronic devices.

Component Analysis

The semiconductor market by component is segmented into memory devices, logic devices, analog IC,

Expert industry market research on the Global Semiconductor & Electronic Parts Manufacturing (2025-2030). Make better business decisions, faster with IBISWorld's industry market research reports, statistics, analysis, data, trends and forecasts.

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Semiconductor Foundry Market Size 2025-2029

The semiconductor foundry market size is forecast to increase by USD 82.84 billion at a CAGR of 9% between 2024 and 2029.

The market is experiencing significant growth due to the increasing adoption of the Internet of Things (IoT) in various industries. The integration of advanced analytics in semiconductor foundries is a key driver, enabling improved efficiency and productivity. However, the market is subject to high fluctuations due to the cyclic nature of the semiconductor industry. This volatility poses a significant challenge for market participants, necessitating effective demand forecasting and supply chain management. Semiconductor industry standards, such as process control software and etching equipment, ensure consistent manufacturing processes.
To capitalize on the market's potential, companies must stay abreast of technological advancements and adapt to evolving customer requirements. Additionally, strategic partnerships and collaborations can help mitigate the challenges posed by market volatility and ensure long-term success. Reliability testing and process simulation are crucial for ensuring product quality and longevity. Semiconductor equipment manufacturers invest in R&D to develop innovative solutions for power consumption reduction, manufacturing automation, and thermal management. This data enables predictive maintenance, advanced process controls, and intelligent scheduling, transforming the foundry industry.

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The global semiconductor industry is experiencing significant advancements in various areas, including power consumption, manufacturing processes, and material science. Thin film deposition plays a crucial role in reducing power consumption by enabling the use of advanced materials like dielectrics and conductives in semiconductor devices. Computational design and simulation tools facilitate process optimization, while failure analysis ensures product reliability. Manufacturing automation and yield management software are essential for maintaining high production efficiency and minimizing waste. Thermal management and packaging design are critical aspects of semiconductor production, with lead-free packaging gaining popularity due to environmental concerns.
Big data analytics and geopolitical factors influence the semiconductor supply chain, necessitating process optimization and yield enhancement. Lithography systems and metrology equipment enable precise fabrication and measurement, while deposition equipment and design software enable the development of innovative semiconductor products. Government regulations and geopolitical factors impact the semiconductor industry, requiring continuous adaptation and innovation. Advanced materials like dielectrics and conductives, as well as semiconductor equipment, are essential for performance optimization and yield enhancement.

How is this Semiconductor Foundry Industry segmented?

The semiconductor foundry industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Pure-play foundries
  IDMs


Application

  Communications
  PCs and desktop
  Consumers
  Automotive
  Others


Technology

  7nm and Below
  10nm to 20nm
  20nm to 45nm
  45nm and above


Geography

  North America

    US
    Canada


  Europe

    France
    Germany


  APAC

    China
    India
    Japan
    South Korea
    Taiwan


  South America

    Brazil


  Rest of World (ROW)

By Type Insights

The pure-play foundries segment is estimated to witness significant growth during the forecast period. Pure-play foundries are specialized companies that exclusively provide semiconductor fabrication services to various clients, including fabless semiconductor companies, design houses, and other entities. These foundries do not engage in chip design but focus solely on the manufacturing process. The market for pure-play foundries is expansive, catering to numerous industries such as consumer electronics, automotive, telecommunications, industrial, and healthcare. Diversification in clientele mitigates risks arising from market segment fluctuations and enhances foundries' resilience to market volatility. Process innovation, driven by advancements in technologies like EUV lithography, deep ultraviolet (DUV), and advanced packaging, is a significant growth factor.

Moore's Law continues to push the boundaries of semiconductor technology, leading to the production of smaller, more efficient chips. This, in

Semiconductors Market size was valued at USD 466.32 Billion in 2023 and is poised to grow from USD 506.89 Billion in 2024 to USD 988 Billion by 2032, growing at a CAGR of 8.7% during the forecast period (2025-2032).

The global power semiconductor market is growing significantly, driven by rising demand for energy-efficient technologies across various applications.

Market Size statistics on the Global Semiconductor & Electronic Parts Manufacturing industry in Global

In the fourth quarter of 2024, Taiwan Semiconductor Manufacturing Company (TSMC) recorded a market share of **** percent in the global semiconductor foundry market, while Samsung occupied *** percent of the market. In terms of revenue, the top ten semiconductor foundries worldwide generated ***** billion U.S. dollars in the fourth quarter of 2024. The semiconductor manufacturing process is complex The semiconductor supply chain can be categorized into roughly three distinct stages: design, fabrication, and assembly. Companies that perform all three of these steps are referred to as integrated device manufacturers, with examples including Intel and Samsung. Firms that only design chips, known as fabless companies, rely on chip manufacturers, or foundries, for fabrication. A reliance on semiconductor foundries Fabless companies work closely with the foundries, companies that manufacture chips in fabrication plants, with the market leader TSMC contracted by various companies. Founded in 1987, TSMC decided not to manufacture any products under its name so that the company never engages in direct competition with its customers. Under this strategy, TSMC became the world’s largest semiconductor foundry and a key supplier for large tech companies.

The global semiconductor manufacturing equipment market size is valued at US$ 105.1 billion in 2024. The market is predicted to expand at a CAGR of 7.7% during the forecast period. The global semiconductor manufacturing equipment industry valuation is estimated to reach nearly US$ 220 billion by 2034.

Report Attribute	Details
Semiconductor Manufacturing Equipment Market Size (2024)	US$ 105.1 billion
Market Anticipated Forecast Value (2034)	US$ 220 billion
Market Projected Growth Rate (2024 to 2034)	7.7% CAGR

Global Semiconductor Manufacturing Equipment Market Historical Analysis Vs Forecast Outlook

Attributes	Details
Semiconductor Manufacturing Equipment Market Revenue (2019)	US$ 68 billion
Market Revenue (2023)	US$ 96.7 billion
Market Historical Growth Rate (CAGR 2019 to 2023)	9.2% CAGR

Country-wise Insights

Regional Market Comparison	CAGR (2024 to 2034)
United States	7.8%
Japan	8.8%
United Kingdom	8.9%
South Korea	9.8%
China	8.2%

Category-wise Insights

Attributes	Details
Top Equipment Type	Front-end Equipment
Segment Growth Rate (2024 to 2034)	7.5% CAGR
Segment Growth Rate (2019 to 2023)	9% CAGR

Attributes	Details
Top Dimension Type	2D
Segment Growth Rate (2024 to 2034)	7% CAGR
Segment Growth Rate from (2019 to 2023)	8.7% CAGR

Semiconductor Market Outlook

As per our latest research, the global semiconductor market size in 2024 stands at USD 635.2 billion, reflecting robust growth driven by surging demand across electronics, automotive, and industrial sectors. The market is expected to grow at a CAGR of 8.7% from 2025 to 2033, reaching a forecasted value of USD 1,306.4 billion by 2033. This expansion is primarily fueled by rapid adoption of advanced technologies such as artificial intelligence, 5G, and the Internet of Things (IoT), which are significantly increasing the consumption of semiconductors globally.

The primary growth driver for the semiconductor market is the accelerating integration of semiconductor devices across diverse applications, particularly in consumer electronics and automotive industries. The proliferation of smart devices, such as smartphones, tablets, wearables, and smart home systems, is generating unprecedented demand for high-performance chips and integrated circuits. Furthermore, the ongoing digital transformation in enterprises and the rising adoption of cloud computing are fueling the need for advanced data centers, which rely heavily on cutting-edge semiconductors for processing, storage, and connectivity. The emerging trend of electrification in the automotive sector, including electric vehicles (EVs) and autonomous driving technologies, is also contributing substantially to the market’s upward trajectory.

Another significant factor propelling the semiconductor market is the relentless innovation in semiconductor manufacturing processes and materials. The industry’s shift towards smaller process nodes, such as 5nm and 3nm technologies, is enabling the production of faster, more energy-efficient, and compact chips. Innovations in materials, including silicon carbide (SiC) and gallium nitride (GaN), are further enhancing the performance and reliability of power electronics, especially in high-voltage and high-frequency applications. The growing focus on sustainability and energy efficiency is also prompting manufacturers to adopt advanced packaging and fabrication techniques, thereby improving yield and reducing operational costs. These technological advancements are not only expanding the application scope of semiconductors but also attracting significant investments in research and development.

The global semiconductor market is also benefiting from supportive government policies and strategic public-private partnerships. Several governments, particularly in Asia Pacific, North America, and Europe, are implementing initiatives to strengthen domestic semiconductor manufacturing capabilities and reduce supply chain vulnerabilities. For instance, the United States CHIPS Act and Europe’s Chips Act are aimed at bolstering local production, fostering innovation, and incentivizing investments in semiconductor fabrication plants. Additionally, increased collaboration between semiconductor companies and end-user industries is accelerating the development of customized solutions tailored to specific industry requirements. These collaborative efforts are expected to drive further growth and resilience in the semiconductor market over the forecast period.

From a regional perspective, Asia Pacific continues to dominate the semiconductor market, accounting for the largest share in terms of both production and consumption. The region’s leadership is underpinned by a robust electronics manufacturing ecosystem, particularly in countries such as China, South Korea, Taiwan, and Japan. North America and Europe are also significant contributors, driven by strong investments in R&D, advanced manufacturing capabilities, and a focus on strategic autonomy in semiconductor supply chains. Meanwhile, emerging markets in Latin America and the Middle East & Africa are witnessing growing demand for semiconductors, fueled by expanding digital infrastructure and increasing adoption of smart technologies. Regional disparities in market size and growth rates are expected to persist, shaped by factors such as government policies, technological advancements, and evolving end-user demand.

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Global Semiconductor Manufacturing Equipment Market size was valued at around USD 89.11 billion in 2023 and is estimated to grow at a CAGR of about 8.66% during the forecast period 2024-30.

Global Semiconductor Market Research Analysis Trends, Industry Share, Size, Growth, and Segmentation Report By Product (Integrated Circuits, Optoelectronics, Discrete Semiconductors, and Sensors), By Application (Automotive, Communication, Consumer Electronics, Industrial, Data Processing and Others), and By Region – Market Scope, Opportunities and Forecast, 2020-2027. Semiconductor market is estimated over USD 510 million in 2019 and is anticipated to grow at a compound annual growth rate (CAGR) of 4.22% over the forecast period (2020-2027).