Americas Semiconductor Device Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Americas Semiconductor Device Market Analysis

Americas Semiconductor Device Market is valued at USD 131.54 billion in the current year and is expected to reach a CAGR of 9% during the forecast period to become USD 202.39 billion by the next five years. The country's semiconductor industry is noticing rapid growth, with semiconductors emerging as the basic building blocks of all modern technology. The improvements and innovations in this field are resulting in a direct impact on all downstream technologies. In addition, the United States is innovating in manufacturing, creation, and research in the semiconductor industry. The country is also the frontrunner in semiconductor packaging innovation, boasting 80 wafer fabrication plants across 19 states.

• With the growing adoption of 5G technology, the semiconductor industry is expected to experience a considerable impact. As the 5G standard can transmit over ten times the data rates achievable using advanced forms of 4G, semiconductors are expected to meet the new requirement to manage the data generated in a 5G ecosystem. In addition, 5G is also opening up new frontiers of semiconductor demand in the U.S. For instance, as per GSMA, 5G will become the lead network technology in the U.S. by 2025. The increasing implementation of 5G networks coincides with the increasing demand for faster high-performance computing devices, for which semiconductors form a critical element.
• Furthermore, vendors investing in semiconductors devices may further propel the studied market growth. For instance, in February 2022, Texas Instruments detailed its plan to invest billions in United States semiconductor chip production through 2030. Texas Instruments revealed plans to invest USD 3.5 billion annually in its U.S. semiconductor chip manufacturing through 2025 as manufacturers face a global shortage of the tech necessary for increasing goods.
• In addition, Micron Technology Inc. (an American company) had planned to invest about USD 3 Billion by 2030, intending to increase memory production at its plant in Virginia. These investments are expected to support the company's leadership in the rapidly growing market for high-quality and high-reliability memory products.
• Further, in April 2022, Wolfspeed officially opened its state-of-the-art, 200mm Silicon Carbide fabrication facility in Marcy, New York, United States, further driving the studied market growth.
• Furthermore, many regulations have been implemented in recent years to promote the use of electric vehicles in the country. For instance, New York state lawmakers recently passed a bill that essentially mandates that all new passenger cars sold in the state run on electric power by 2035. Moreover, the United States has set a target to ensure half of the vehicles sold in the country are electric by 2030.
• Moreover, with wafer starts being the primary constraint within the chip supply chain, impacts from this heightened demand are primarily experienced at wafer foundries. Manufacturers like Texas Instruments, Intel, and TSMC are investing considerably in constructing new fabs to ramp up chip production. Additionally, governments across the nation have also joined forces to increase chip capacity. For instance, in July 2022, the United States Senate and House of Representatives passed the CHIPS Act, which includes about USD 52 billion in government subsidies for the research and production of semiconductors in the country.
• Furthermore, the COVID-19 outbreaks impacted low inventory levels for clients of semiconductor retailers and distribution channels. In Q1 of 2020, the semiconductor industry witnessed a slowdown in smartphone production and demand disruption. However, as the supply chain gradually recovered in the Q2 of 2020, governments enabled fiscal policies to rescue the economy. These factors, combined with the rise of the stay-at-home economy, led to increased restocking demand from downstream clients, boosting semiconductor revenue.

Americas Semiconductor Device Market Trends

Discrete Semiconductor Hold Significant Market Share

Americas Semiconductor Device Industry Segmentation

A semiconductor device is an electronic element that relies on the electronic properties of a semiconductor textile (primarily silicon, gallium arsenide, germanium, and organic semiconductors) for its function. Its conductivity lies between conductors and insulators. The studied market is segmented by devices such as Discrete Semiconductors, Optoelectronics, Sensors, and Integrated Circuits {Analog, Logic, Memory, Micro [Microprocessors (MPU), Microcontrollers (MCU), and Digital Signal Processors]}, among end-user verticals such as Automotive, Communication {Wired and Wireless}, Consumer, Industrial, Computing/Data Storage in multiple regions and country. Further, the impact of COVID-19 on the market and impacted segments are also covered under the scope of the study. Further, the disturbance of the factors affecting the market's expansion in the near future has been covered in the study regarding drivers and restraints. The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.