The Semiconductor Fabless Market will grow at a CAGR of 9.1% during the forecast period, with an estimated size and share crossing USD 11.05 billion by 2034.

In the third quarter of 2021, the South Korean firm Samsung remained in first place ahead of U.S. based company Intel as the market leader regarding global semiconductor sales. The company recorded a sales volume of about 22.32 billion U.S. dollars. Intel generated 18.79 billion U.S. dollars from the sale of semiconductors during the third quarter of 2021. Samsung's third quarter semiconductor sales have increased by 10 percent compared to the previous quarter of 2021.

IDM vs fabless vs foundry

Semiconductor companies can be largely categorized into three different types: integrated device manufacturers (IDMs), fabless companies, and foundry companies. IDMs are companies that are responsible for all semiconductor manufacturing processes from design to production. Fabless companies produce their own designs for semiconductors but do not own any production facilities. The actual production or fabrication of semiconductors is outsourced to foundry companies.

Samsung’s home market

The South Korean semiconductor industry’s main advantage lies in the production of memory semiconductors. Revenue from sales of NAND flash memory chips demonstrate how competitive Samsung and SK Hynix are on a global scale. Both companies also operate in the production of other types of memory semiconductors, notably having a strong presence in the DRAM market as well.

The Global Semiconductor Foundry Market Size Was Worth USD 53.41 Billion in 2023 and Is Expected To Reach USD 102.40 Billion by 2032, CAGR of 7.50%.

Integrated circuit (IC) companies based in the United States dominated the global market, accounting for just over half of the total sales in 2021. U.S.-headquartered integrated device manufacturers (IDM) and fabless companies held about 47 and 68 percent of the global IC market, respectively. The share of South Korean IDM companies amounted to 33 percent, contributing to the country's 22 percent share of the worldwide IC market.

In 2023, among leading fabless integrated circuit (IC) companies, Nvidia's revenue amounted to 55.27 billion U.S. dollars, up from the 27.01 billion U.S. dollars posted the previous year, with the company spearheading the artificial intelligence (AI) revolution that has gripped the world.

The force in AI

Without doubt, Nvidia has been the star of the fabless world, earning a reputation for being the dominant force in providing the technologies to support AI. Such has been the company’s rise that it briefly moved into the number one spot among tech companies in terms of market capitalization for the first time in June 2024.

Nvidia’s rise to the top

The surge that Nvidia has been on comes because its chips have been used to train and run a variety of large language models, such as ChatGPT. AI technologies and tasks require specialized AI chips that are more powerful, more efficient, and optimized for advanced machine learning algorithms. For Nvidia and other fabless companies like Qualcomm and AMD, the AI boom should act as a boost to revenues.

The size of the Fabless IC Market was valued at USD 1 Million in 2024 and is projected to reach USD XXX Million by 2033, with an expected CAGR of XX% during the forecast period. The fabless integrated circuit (IC) market is currently growing strongly because of the need for semiconductor solutions in a diverse range of applications, including consumer electronics, automotive, telecommunications, and industrial uses. Fabless companies design ICs but have the manufacture outsourced to specialized semiconductor foundries. Such a business model enables fabless companies to focus on innovation and design, reducing capital expenditures associated with building and maintaining semiconductor fabrication facilities, or "fabs.". The market is being fueled by the proliferation of mobile devices, IoT devices, and the ongoing advancements in artificial intelligence (AI), 5G, and automotive technologies. Fabless IC companies play a critical role in developing cutting-edge solutions that power smartphones, wearables, autonomous vehicles, and other connected devices. Furthermore, the increasing adoption of cloud computing, edge computing, and data center technologies is driving demand for high-performance and energy-efficient ICs. The key drivers for the growth of the fabless IC market include the scalability and flexibility of the fabless model, along with the continued advancement of semiconductor manufacturing technologies. Asia-Pacific is the biggest region for fabless IC design in countries such as Taiwan and China, in which leading foundries such as TSMC and SMIC are based. Recent developments include: In November 2023, Silicon Laboratories Inc. has launch the BB5x family, a new family of 8-bit microcontrollers (MCUs) built to help designers use familiar tools when developing simple embedded applications like electric toothbrushes, handheld kitchen tools, and even children's toys..

In 2024, Samsung was the leading semiconductor vendor with 66.52 billion U.S. dollars in revenue, with Intel ranking second among vendors after generating 49.19 billion U.S. dollars in revenue. Reaping the rewards from the strength of its AI business, Nvidia came in at third in 2024, generating 45.99 billion U.S. dollars in revenue through the year. Semiconductor companies Some of the biggest companies within the semiconductor industry include integrated device manufacturers (IDMs) like Samsung, Intel, and SK Hynix. Other notable firms within the global semiconductor industry include fabless companies like Nvidia and Qualcomm, the likes of which work closely with foundries such as Taiwan Semiconductor Manufacturing Company (TSMC) — the world's largest foundry — that manufactures chips in its fabrication plants. Semiconductor market opportunities Smartphones have long represented an important market for the semiconductor industry, especially as these devices become more advanced and able to support technologies such as XR, 5G, and AI. Servers and data centers have also become an even more important opportunity, with semiconductor innovation required to support cloud data centers and the rise in AI and edge computing applications, developments that have been supported by the development of AI chips. Industrial and automotive applications are also expected to experience increased demand: as manufacturing facilities and vehicles become smarter and ever more connected, the requirement for more advanced semiconductor technology to fulfill these tasks grows.

The size of the Semiconductor Foundry Market was valued at USD 128.11 USD billion in 2023 and is projected to reach USD 208.42 USD billion by 2032, with an expected CAGR of 7.2% during the forecast period. A semiconductor foundry, also known as a fabrication plant or fab, is a specialized facility where semiconductor chips are manufactured. These foundries are primarily contracted by companies (known as fabless semiconductor companies) that design chips but lack the infrastructure to produce them. Foundries use advanced processes to create integrated circuits on silicon wafers, employing technologies such as photolithography, etching, and chemical deposition. Key players in the industry include Taiwan Semiconductor Manufacturing Company (TSMC), GlobalFoundries, and Samsung Foundry, among others. Foundries are crucial to the semiconductor supply chain, enabling innovation across industries like consumer electronics, automotive, telecommunications, and AI. The burgeoning demand for advanced semiconductors driven by the proliferation of cutting-edge technologies like artificial intelligence, cloud computing, and 5G networks is propelling the growth of the Semiconductor Foundry Market. The market is further bolstered by government initiatives aimed at fostering domestic semiconductor manufacturing capabilities and reducing reliance on imports. Moreover, with the growing global population and associated food security concerns, hybrid seeds offer a promising solution for sustainable and efficient food production, contributing to the market's expansion.

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Semiconductor Foundry Market Size 2024-2028

The semiconductor foundry market size is forecast to increase by USD 50.07 billion at a CAGR of 7.47% between 2023 and 2028. The market is experiencing significant growth due to the increasing demand for IoT devices and systems, which require advanced semiconductor technology. The adoption of IoT in various industries, including manufacturing and mobile telecommunications networks, is driving the need for more sophisticated semiconductor solutions. Additionally, the use of advanced analytics in semiconductor foundries is improving efficiency and productivity. However, the market is subject to high fluctuations due to the cyclic nature of the semiconductor industry. Furthermore, the development of new manufacturing process technologies and optical component technologies is expected to create new opportunities for market growth. Overall, the market is poised for growth, driven by the increasing demand for IoT devices and systems, and the adoption of advanced technologies in semiconductor manufacturing.

What will be the Size of the Semiconductor Foundry Market During the Forecast Period?

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The market is experiencing significant growth due to the increasing demand for advanced technologies such as cloud computing, artificial intelligence (AI), and the Internet of Things (IoT). High-speed connectivity, driven by 5G wireless and mobile telecommunications networks, is fueling the demand for semiconductors in various industries. The consumer electronics sector, including laptops, smartphones, and earphones, is a major contributor to the market. The automotive sector is also a significant market for semiconductors, with the increasing adoption of autonomous driving and advanced safety features. The integration of AI and advanced analytics in various applications, from smart factories to IoT devices, is driving the demand for more sophisticated chips.

Furthermore, process technology advancements, such as the development of smaller transistors, are enabling the production of more powerful and energy-efficient ICs. The market is expected to grow further with the increasing adoption of 5G technology in various industries, including automotive chips and mobile telecommunications networks. The integration of AI in consumer electronics and the growth of smart factories are also expected to boost the market's growth.

Semiconductor Foundry Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  Pure-play foundries
  IDMs


Application

  Communications
  PCs/Desktop
  Consumers
  Automotive
  Others


Geography

  North America

    US


  APAC

    China
    South Korea


  Europe

    Germany


  South America



  Middle East and Africa

By Type

The pure-play foundries segment is estimated to witness significant growth during the forecast period. Pure-play foundries are specialized companies that focus exclusively on the manufacturing of semiconductor devices for other semiconductor companies. In contrast to integrated device manufacturers (IDMs), which both design and manufacture their own chips, these foundries dedicate their resources solely to the fabrication process. They provide semiconductor fabrication services to fabless semiconductor companies, design houses, and other clients who outsource their chip production. The customer base of pure-play foundries spans various industries, including consumer electronics, telecommunications, industrial, healthcare, and the automotive sector. The automotive industry, in particular, is experiencing significant growth due to the increasing adoption of autonomous driving technology and autonomous vehicles.

Furthermore, pure-play foundries cater to this trend by manufacturing chips for advanced driver-assistance systems (ADAS) and other automotive applications. Diversification across multiple industry segments helps mitigate risks associated with market volatility and strengthens foundries' resilience. The high economies of scale in semiconductor manufacturing further contribute to the growth of pure-play foundries.

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The pure-play foundries segment was valued at USD 71.65 billion in 2018 and showed a gradual increase during the forecast period.

Regional Insights

North America is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The North American reg

In the third quarter of 2023, of the leading integrated circuit design companies worldwide, Nvidia's revenue amounted to about 16.5 billion U.S. dollars, whilst Qualcomm ranked second with revenue of 7.4 billion U.S. dollars. Benefitting from the global demand for its technologies, Nvidia’s solutions are being deployed for accelerated computing and generative AI applications.

Among the tech giants

In June 2024, Nvidia briefly went into the number one spot among the leading tech companies in terms of market capitalization, jumping ahead of Microsoft and Apple. Nvidia’s rise can be attributed to its dominance in supplying the world with AI chips, advanced semiconductors that have become one of the hottest commodities in tech and global economy.

AI the growth enabler

For Nvidia and other fabless companies like AMD and Qualcomm, the AI boom has meant that providing the necessary technologies to support AI has become key. In June 2024, AMD announced a range of new AI chips, including the Ryzen AI 300 series for next-generation AI laptops. Similarly, Qualcomm is also keen to be a prominent player in the growing AI PC market, with its Snapdragon processors found in Windows-based Copilot+ PCs.

The global semiconductor intellectual property (IP) market size reached USD 5.9 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 8.9 Billion by 2033, exhibiting a growth rate (CAGR) of 4.40% during 2025-2033. The market is primarily driven by the expanding electronics sector globally, the extensive utilization of multicore technology for consumer electronics, and the continuous technological innovations.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional and country levels for 2025-2033. Our report has categorized the market based on IP type, revenue source, IP core, application, and end use industry.

The global market for Integrated Circuit (IC) 3D Automated Optical Inspection (AOI) is experiencing steady growth, projected to reach $401 million in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 3.2% from 2025 to 2033. This growth is driven by several key factors. The increasing complexity and miniaturization of ICs necessitate more sophisticated inspection techniques to ensure high yields and product quality. The rise of advanced packaging technologies, such as 3D stacking and system-in-package (SiP), further fuels demand for 3D AOI systems capable of detecting defects at various levels. Moreover, the expanding adoption of automation across the semiconductor industry, driven by efficiency and cost reduction goals, is a significant contributor to market expansion. The Fabless segment, characterized by companies focusing solely on IC design, is expected to dominate the application segment due to its reliance on external foundries and a consequent need for rigorous quality control. Inline AOI systems are likely to hold a larger market share compared to offline systems due to their integration into production lines and real-time defect detection capabilities. Key players like Koh Young Technology, ViTrox, and Saki Corporation are driving innovation through advanced algorithms and hardware improvements, enhancing inspection accuracy and speed. However, the high initial investment cost of 3D AOI systems can act as a restraint, particularly for smaller companies. Furthermore, the need for skilled operators and continuous software updates represent ongoing challenges for widespread adoption. Geographic distribution shows a strong presence in North America and Asia Pacific, particularly China and South Korea, reflecting established semiconductor manufacturing hubs. Future growth will be shaped by advancements in artificial intelligence (AI) and machine learning (ML) for defect classification, the emergence of new packaging technologies, and the continued expansion of the semiconductor industry across diverse applications such as automotive, 5G, and high-performance computing.

The Dedicated Integrated Circuit (IC) Foundry market is a vital segment within the semiconductor industry, playing a crucial role in the design and production of integrated circuits tailored to specific applications. This market caters to a diverse clientele, including fabless semiconductor companies and original eq

The global Semiconductor Interface IP Core market size was valued at USD 5330 million in 2025 and is projected to grow at a CAGR of 13.8% from 2025 to 2033, reaching USD 11940 million by 2033. Increasing demand for semiconductor IP cores for advanced electronic devices, rising adoption of cloud and edge computing, and the growing popularity of artificial intelligence (AI) and machine learning (ML) are key factors driving the growth of the Semiconductor Interface IP Core market. The market is segmented by type into wired interface and wireless interface. The wired interface segment accounted for the largest share of the market in 2025, and it is expected to continue to dominate the market during the forecast period. The wireless interface segment is expected to witness significant growth during the forecast period due to the increasing adoption of wireless technologies in various electronic devices. By application, the market is segmented into IDM, wafer foundry, fabless, and OSAT. The IDM segment accounted for the largest share of the market in 2025, and it is expected to continue to dominate the market during the forecast period. The fabless segment is expected to witness significant growth during the forecast period due to the increasing number of fabless semiconductor companies.

In the third quarter of 2024, Taiwan Semiconductor Manufacturing Company (TSMC) recorded a market share of 64.9 percent in the global semiconductor foundry market, while Samsung occupied 9.3 percent of the market. In terms of revenue, the top ten semiconductor foundries worldwide generated 34.9 billion U.S. dollars in the third quarter of 2024. Semiconductor manufacturing process 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 IC companies, rely on chip manufacturers, or foundries, for fabrication. 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.

Semiconductors are necessary chips in numerous applications, including household appliances, consumer electronics, communication equipment and vehicle manufacturing industries. They are also crucial inputs in infrastructure, including traffic lights, alarm systems, medical equipment and solar panels. Although UK companies design and produce many semiconductors, the UK is not a global market leader and contends with intense international competition from microchip giants like Taiwan, China, Japan and the US. Despite this, foreign interest in UK chip manufacturers has increased, with the UK leading the way with start-ups working on semiconductor technologies in Europe. For example, the Newport Wafer Fab, now operating as Vishay Newport Ltd, has had several owners in recent years. Over the five years through 2024-25, revenue is expected to dip at a compound rate of 3.6% to £1.8 billion. Since the EU referendum, some offshoring activity has occurred, with some companies outsourcing production line elements to countries that can provide manufacturing at lower labour costs and improve efficiencies, known as ‘fabless’ production. Revenue tanked over 2020-21 as manufacturers struggled to get the necessary components to produce microchips while downstream markets reduced orders. Over 2021-22 and 2022-23, downstream markets reopened and the global chip manufacturing output couldn't accommodate the surge in new orders in these markets, creating excess demand and propelling selling prices and revenue growth. However, the semiconductor market cooled over 2023-24 as a challenging economic environment lowered order volumes. Over 2024-25, revenue is forecast to inch downwards by 0.7%. Over the five years through 2029-30, revenue is expected to expand at a compound rate of 4% to reach £2.2 billion. The UK National Semiconductor Strategy reveals a new plan to double down on design, research and advanced chip leadership, propelling revenue growth over the coming years. Meanwhile, the emergence of 5G, AI and the Internet of Things (IoT) will significantly broaden the market for advanced semiconductors. These technologies require highly sophisticated semiconductor devices with low power consumption, high performance and connectivity features, which UK manufacturers are increasingly championing. However, intense international competition will continue to weigh on revenue prospects as Asian manufacturers strengthen their hold over the global semiconductor market.

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This semiconductor ip market insights report comprises information on key vendors and their competitive landscape, segmentations by Application (Mobile computing devices, Consumer electronics, Automotive, Industrial automation, and Others), Market Landscape (Processor IP, Physical IP, and Digital IP), End-user (Fabless semiconductor, IDMs, and Foundries), and Geographic Landscape (APAC, Europe, MEA, North America, and South America), key drivers and challenges, and the parent market. This report also discusses vendor strategies that are playing a key role in the business growth.

One of the key vendor strategies is technological innovation, which has been discussed along with other business planning approaches in this report. To gain more insights on vendor strategies request for a sample of the report.

In the first quarter of 2024, Taiwan Semiconductor Manufacturing Company (TSMC) generated about 18.85 billion U.S. dollars in revenue in the semiconductor foundry market, while Samsung made 3.36 billion U.S. dollars. TSMC the dominant player The leading semiconductor foundry, TSMC, is contracted by a variety of companies to manufacture chips. 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. However, the company also faces challenges as it looks to keep up with growing demand. A broad semiconductor ecosystem Semiconductor companies can be categorized into three distinct types: integrated device manufacturers (IDMs), fabless semiconductor companies, and foundries. IDMs are responsible for all semiconductor manufacturing processes from design to production. Fabless companies produce designs for semiconductors but do not own any production facilities. The actual production, or fabrication, of semiconductors is outsourced to foundry companies.