Semiconductor Device Market Size and Share

Semiconductor Device Market (2025 - 2030)
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Semiconductor Device Market Analysis by Mordor Intelligence

The Semiconductor Device market size reached USD 702.44 billion in 2025 and is forecast to attain USD 950.97 billion by 2030, translating into a 6.25% CAGR over the period. Expanding demand for artificial-intelligence infrastructure, electric-vehicle powertrains, and industrial automation platforms keeps the semiconductor market on a multi-year growth trajectory. Hyperscale data-center owners are re-architecting server fleets around AI accelerators, while automakers raise silicon content per vehicle as they pivot to battery-electric drivetrains. Parallel government incentives in the United States, the European Union, and key Asian economies support new wafer-fab construction, yet lead-times for critical lithography tools remain a bottleneck. Geopolitical moves that reshape supply-chain footprints and regulatory compliance frameworks add complexity but also create strategic opportunities for firms that combine design leadership with resilient manufacturing partnerships.[1]TSMC Investor Relations, “TSMC Reports Fourth-Quarter 2024 Results,” tsmc.com

Key Report Takeaways

  • By device type, integrated circuits accounted for 86.1% revenue share in 2024, and the category is poised for 7.9% CAGR through 2030, underscoring its dominance within the semiconductor market. 
  • By business model, design-centric and fabless vendors led with 66.5% of the semiconductor market share in 2024 and are projected to advance at an 8.3% CAGR over the forecast horizon. 
  • By end-user industry, communication equipment held a 29.8% share in 2024, whereas AI-focused hardware is set to expand fastest at a 9.5% CAGR through 2030. 
  • By geography, Asia-Pacific captured 63.2% of the semiconductor market size in 2024 and is projected to grow at a 7.1% CAGR, maintaining its lead despite active diversification in North America and Europe.

Segment Analysis

By Device Type: Integrated Circuits Sustain Leadership

Integrated circuits captured 86.1% of the semiconductor market in 2024 and are projected to advance at a 7.9% CAGR through 2030. Logic and analog sub-segments gain from AI inference engines, vehicle-electrification control, and industrial automation rollouts. High-bandwidth memory and 3-D NAND remain cornerstones of AI accelerator performance, reinforcing premium pricing. Discrete power devices, optoelectronics, and sensors, though smaller in dollar terms, enable system-level functionality vital for EV inverters and optical-communication modules. Silicon-carbide MOSFETs and gallium-nitride HEMTs post double-digit volume gains, reflecting drivetrain voltage escalation trends. MEMS inertial and environmental sensors proliferate in Industry 4.0 projects, ensuring balanced growth across device classes. These trends collectively position integrated circuits at the forefront of the semiconductor market size expansion while permitting specialized components to capture emerging niches.

Global Semiconductor Device Market: Market Share by Device Type
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By Business Model: Fabless Specialization Accelerates Innovation

Design-centric and fabless entities controlled 66.5% of revenue in 2024 and are on track for an 8.3% CAGR through 2030, the fastest among business models. Separation of design and manufacturing lets fabless firms iterate architectures swiftly, a critical factor in AI accelerator races where performance leaps materialize annually. Access to multiproject wafer programs lowers tape-out barriers for start-ups, fueling ecosystem vitality. Integrated-device manufacturers retain advantages in analog and power portfolios where process know-how is tightly linked to materials science, yet face capex pressures surpassing USD 20 billion per node. Emergent foundry–fabless collaboration on advanced packaging redefines value capture, as system-in-package solutions compress board-level designs. This structural evolution reinforces the semiconductor market’s inclination toward innovation-driven differentiation rather than pure capacity scale.

By End-user Industry: AI Outpaces Communication in Growth

Communication infrastructure remained the largest contributor with a 29.8% share in 2024, sustained by 5 G base-station rollouts and fiber backbone upgrades. Conversely, AI compute nodes spanning data centers to edge appliances exhibit the highest growth at 9.5% CAGR, commanding premium average-selling-price chips that significantly enlarge the semiconductor market size for accelerator-class silicon. Automotive demand intensifies as battery-electric and ADAS content rise, while industrial automation integrates machine-vision processors and real-time MCUs. Consumer electronics moderate after pandemic-era peaks, but premium smartphones incorporating AI co-processors prevent unit declines. Government and aerospace orders prioritize radiation-hardened devices, creating small yet high-margin pockets. Diversified application spread shields the semiconductor market from single-segment downturns, albeit heightening design-win complexity for suppliers.

Global Semiconductor Device Market: Market Share by End-user Industry
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Geography Analysis

Asia-Pacific commanded 63.2% of global revenue in 2024 and is forecast to grow at a 7.1% CAGR to 2030, anchored by Taiwan’s advanced-node leadership and South Korea’s USD 471 billion megacluster build-out. Mainland China, while constrained at leading nodes, invests heavily in mature-process parks and domestic equipment suppliers, aiming to lift local content ratios. Japan channels ¥3.9 trillion (USD 26.1 billion) into joint ventures that couple domestic materials prowess with external foundry expertise, while India accelerates assembly-test and design-services growth. 

North America ranks second by value, catalyzed by USD 52 billion CHIPS Act incentives that underwrite new fabs in Arizona, Ohio, and Texas. Intel secured USD 7.865 billion, TSMC USD 6.6 billion, and Samsung USD 4.745 billion for U.S. expansions. The region houses a dense cluster of fabless AI and networking chip designers, translating into sustained demand for advanced wafers. Automotive electrification programs in Michigan and California further diversify revenue streams, ensuring the semiconductor market remains robust even amid cyclical consumer-electronics swings. Section 5949 of the 2023 NDAA will phase in procurement restrictions in 2027, nudging supply chains toward domestic nodes for defense-linked workloads. 

Europe, holding under 10% share, nonetheless influences technology direction through stringent automotive and environmental regulations that shape chip specifications worldwide. The EU Chips Act targets a 20% production share by 2030 via incentive pools for Dresden and Eindhoven projects focusing on power electronics and specialty analog. Germany anchors premium vehicle semiconductor demand, while Nordic grids adopt wide-bandgap devices for renewables. Collaborative R&D alliances leverage university-industry ties, positioning the continent as a competence center for reliability and safety certification—attributes prized across the semiconductor market.

Global Semiconductor Device Market CAGR (%), Growth Rate by Region
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Competitive Landscape

Foundry capacity remains highly concentrated; the top 10 players controlled the majority of output in 2024. TSMC led the market, leveraging high-volume 3 nm ramps and superior packaging services. Samsung held a significant revenue share but struggles with advanced-node yields, recently courting automotive customers to diversify its mix. GlobalFoundries and UMC are exploring a merger that would create a multiregional player with combined revenue topping USD 15 billion, raising competitive stakes in specialty and mature nodes. 

Strategic pivots emphasize vertical collaboration: Intel and TSMC formed an advanced-packaging joint venture, combining substrate integration expertise with leading-edge wafer output. Synopsys-Ansys’s USD 35 billion union consolidates simulation and EDA tool chains, shortening chip-validation cycles. Suppliers of specialty materials, such as 3M, join U.S. consortia to localize substrate and thermal interface production, addressing geopolitical supply-risk concerns. 

The talent gap looms large; forecasts show 58% of incremental engineering roles could remain unfilled by 2030, compelling firms to establish apprenticeship pipelines and AI-assisted design flows. Export-control regimes intensify compliance overheads but simultaneously shelter incumbents with transparent value chains. Overall, competitive advantage accrues to companies blending design agility, manufacturing access, and regulatory fluency, reinforcing the semiconductor market’s oligopolistic profile.

Semiconductor Device Industry Leaders

  1. Intel Corporation

  2. Nvidia Corporation

  3. Kyocera Corporation

  4. Qualcomm Incorporated

  5. STMicroelectronics NV

  6. *Disclaimer: Major Players sorted in no particular order
Semiconductor Device Market Concentration
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Recent Industry Developments

  • August 2025: Tesla and Samsung Electronics finalized a USD 16.5 billion alliance for autonomous-driving AI chips, with Samsung providing high-bandwidth memory and advanced packaging.
  • July 2025: GlobalFoundries announced a USD 16 billion U.S. capacity expansion to boost mature-node output 40% by 2028, inclusive of automotive-qualified lines.
  • June 2025: TSMC commenced commercial 2 nm production in Taiwan, securing initial orders from Apple and Nvidia.
  • April 2025: Intel and TSMC launched a joint venture on next-generation packaging, sharing IP and process-development roadmaps.

Table of Contents for Semiconductor Device Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 AI Accelerator Demand in Hyperscale Data Centers (US and China)
    • 4.2.2 EV Power-Electronics Content per Vehicle Surging
    • 4.2.3 ADAS Semiconductor Penetration in Next-Gen Vehicles
    • 4.2.4 Industrial Edge-IoT Sensor Proliferation (Europe)
    • 4.2.5 5G RF-Front-End Complexity (Korea and China)
    • 4.2.6 US/EU CHIPS-Act Fab Incentives
  • 4.3 Market Restraints
    • 4.3.1 Lithography Tool Lead-Times >18 Months
    • 4.3.2 Export-Control Curbs on Advanced Nodes (China)
    • 4.3.3 High Fab Capex and Energy Intensity
    • 4.3.4 Engineering-Talent Shortage
  • 4.4 Technological Trends
  • 4.5 Industry Value Chain Analysis
  • 4.6 Semiconductor Foundry Landscape
    • 4.6.1 Foundry Revenue and Share by Player
    • 4.6.2 IDM vs Fabless Semiconductor Sales
    • 4.6.3 Installed Wafer Capacity by Fab Location
    • 4.6.4 Wafer Capacity by Company and Node Technology
  • 4.7 Regulatory and Trade-Policy Outlook
  • 4.8 Porter’s Five Forces Analysis
    • 4.8.1 Bargaining Power of Suppliers
    • 4.8.2 Bargaining Power of Buyers
    • 4.8.3 Threat of New Entrants
    • 4.8.4 Threat of Substitutes
    • 4.8.5 Intensity of Competitive Rivalry
  • 4.9 Investment Analysis
  • 4.10 Impact of Macroeconomic Factors

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Device Type (Shipment Volume for Device Type is Complementary)
    • 5.1.1 Discrete Semiconductors
    • 5.1.1.1 Diodes
    • 5.1.1.2 Transistors
    • 5.1.1.3 Power Transistors
    • 5.1.1.4 Rectifier and Thyristor
    • 5.1.1.5 Other Discrete Devices
    • 5.1.2 Optoelectronics
    • 5.1.2.1 Light-Emitting Diodes (LEDs)
    • 5.1.2.2 Laser Diodes
    • 5.1.2.3 Image Sensors
    • 5.1.2.4 Optocouplers
    • 5.1.2.5 Other Device Types
    • 5.1.3 Sensors and MEMS
    • 5.1.3.1 Pressure
    • 5.1.3.2 Magnetic Field
    • 5.1.3.3 Actuators
    • 5.1.3.4 Acceleration and Yaw Rate
    • 5.1.3.5 Temperature and Others
    • 5.1.4 Integrated Circuits
    • 5.1.4.1 By Integrated Circuit Type
    • 5.1.4.1.1 Analog
    • 5.1.4.1.2 Micro
    • 5.1.4.1.2.1 Microprocessors (MPU)
    • 5.1.4.1.2.2 Microcontrollers (MCU)
    • 5.1.4.1.2.3 Digital Signal Processors
    • 5.1.4.1.3 Logic
    • 5.1.4.1.4 Memory
    • 5.1.4.2 By Technology Node (Shipment Volume Not Applicable)
    • 5.1.4.2.1 < 3nm
    • 5.1.4.2.2 3nm
    • 5.1.4.2.3 5nm
    • 5.1.4.2.4 7nm
    • 5.1.4.2.5 16nm
    • 5.1.4.2.6 28nm
    • 5.1.4.2.7 > 28nm
  • 5.2 By Business Model
    • 5.2.1 IDM
    • 5.2.2 Design/ Fabless Vendor
  • 5.3 By End-user Industry
    • 5.3.1 Automotive
    • 5.3.2 Communication (Wired and Wireless)
    • 5.3.3 Consumer
    • 5.3.4 Industrial
    • 5.3.5 Computing/Data Storage
    • 5.3.6 Data Center
    • 5.3.7 AI
    • 5.3.8 Government (Aerospace and Defense)
  • 5.4 By Geography
    • 5.4.1 North America
    • 5.4.1.1 United States
    • 5.4.1.2 Canada
    • 5.4.1.3 Mexico
    • 5.4.2 South America
    • 5.4.2.1 Brazil
    • 5.4.2.2 Mexico
    • 5.4.2.3 Argentina
    • 5.4.2.4 Rest of South America
    • 5.4.3 Europe
    • 5.4.3.1 Germany
    • 5.4.3.2 France
    • 5.4.3.3 United Kingdom
    • 5.4.3.4 Nordics
    • 5.4.3.5 Rest of Europe
    • 5.4.4 Asia-Pacific
    • 5.4.4.1 China
    • 5.4.4.2 Taiwan
    • 5.4.4.3 South Korea
    • 5.4.4.4 Japan
    • 5.4.4.5 India
    • 5.4.4.6 Rest of Asia-Pacific
    • 5.4.5 Middle East and Africa
    • 5.4.5.1 Middle East
    • 5.4.5.1.1 Saudi Arabia
    • 5.4.5.1.2 United Arab Emirates
    • 5.4.5.1.3 Turkey
    • 5.4.5.1.4 Rest of Middle East
    • 5.4.5.2 Africa
    • 5.4.5.2.1 South Africa
    • 5.4.5.2.2 Rest of Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 Intel Corporation
    • 6.4.2 Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC)
    • 6.4.3 Samsung Electronics Co. Ltd.
    • 6.4.4 Nvidia Corporation
    • 6.4.5 Qualcomm Incorporated
    • 6.4.6 Texas Instruments Inc.
    • 6.4.7 SK Hynix Inc.
    • 6.4.8 Micron Technology Inc.
    • 6.4.9 Broadcom Inc.
    • 6.4.10 Advanced Micro Devices Inc. (AMD)
    • 6.4.11 Analog Devices Inc.
    • 6.4.12 NXP Semiconductors NV
    • 6.4.13 Infineon Technologies AG
    • 6.4.14 STMicroelectronics NV
    • 6.4.15 ON Semiconductor Corp.
    • 6.4.16 Renesas Electronics Corp.
    • 6.4.17 Wolfspeed Inc.
    • 6.4.18 GlobalFoundries Inc.
    • 6.4.19 United Microelectronics Corp. (UMC)
    • 6.4.20 ASE Technology Holding Co. Ltd.
    • 6.4.21 ROHM Co. Ltd.
    • 6.4.22 Kyocera Corp.
    • 6.4.23 Toshiba Corp.
    • 6.4.24 Fujitsu Semiconductor Ltd.
    • 6.4.25 Marvell Technology Inc.

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-Need Assessment
*List of vendors is dynamic and will be updated based on customized study scope
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Global Semiconductor Device Market Report Scope

Semiconductor devices are electronic components made from semiconductor materials that exhibit unique electrical properties. Semiconductor materials, such as silicon and germanium, have the unique characteristic of conducting electricity under certain conditions. Unlike conductors (like metals) that easily allow the flow of electrons and insulators (like rubber) that resist the flow of electrons, semiconductors have conductivity that can be controlled.

The market is defined by the revenue generated from sales of semiconductor devices like discrete semiconductors, optoelectronics, sensors, and integrated circuits comprising analog, logic, memory, and micro-integrated circuits employed in various end-user verticals like automotive, communication (wired, wireless), consumer, industrial, computing/data storage, government (aerospace & defense), etc., across various countries like United States, Europe, Japan, China, Korea, Taiwan, and Rest of the World.

The semiconductor device market is segmented by device type (discrete semiconductors, optoelectronics, sensors, integrated circuits (analog, logic, memory, micro [microprocessors (MPU), microcontrollers (MCU), digital signal processors]), by end-user application (automotive, communication (wired and wireless), consumer, industrial, computing/data storage, government (aerospace and defense)), and geography (United States, Europe, Japan, China, Korea, Taiwan, Rest of the World). The report offers market forecasts and size in volume (units) and value (USD) for all the above segments.

By Device Type (Shipment Volume for Device Type is Complementary)
Discrete Semiconductors Diodes
Transistors
Power Transistors
Rectifier and Thyristor
Other Discrete Devices
Optoelectronics Light-Emitting Diodes (LEDs)
Laser Diodes
Image Sensors
Optocouplers
Other Device Types
Sensors and MEMS Pressure
Magnetic Field
Actuators
Acceleration and Yaw Rate
Temperature and Others
Integrated Circuits By Integrated Circuit Type Analog
Micro Microprocessors (MPU)
Microcontrollers (MCU)
Digital Signal Processors
Logic
Memory
By Technology Node (Shipment Volume Not Applicable) < 3nm
3nm
5nm
7nm
16nm
28nm
> 28nm
By Business Model
IDM
Design/ Fabless Vendor
By End-user Industry
Automotive
Communication (Wired and Wireless)
Consumer
Industrial
Computing/Data Storage
Data Center
AI
Government (Aerospace and Defense)
By Geography
North America United States
Canada
Mexico
South America Brazil
Mexico
Argentina
Rest of South America
Europe Germany
France
United Kingdom
Nordics
Rest of Europe
Asia-Pacific China
Taiwan
South Korea
Japan
India
Rest of Asia-Pacific
Middle East and Africa Middle East Saudi Arabia
United Arab Emirates
Turkey
Rest of Middle East
Africa South Africa
Rest of Africa
By Device Type (Shipment Volume for Device Type is Complementary) Discrete Semiconductors Diodes
Transistors
Power Transistors
Rectifier and Thyristor
Other Discrete Devices
Optoelectronics Light-Emitting Diodes (LEDs)
Laser Diodes
Image Sensors
Optocouplers
Other Device Types
Sensors and MEMS Pressure
Magnetic Field
Actuators
Acceleration and Yaw Rate
Temperature and Others
Integrated Circuits By Integrated Circuit Type Analog
Micro Microprocessors (MPU)
Microcontrollers (MCU)
Digital Signal Processors
Logic
Memory
By Technology Node (Shipment Volume Not Applicable) < 3nm
3nm
5nm
7nm
16nm
28nm
> 28nm
By Business Model IDM
Design/ Fabless Vendor
By End-user Industry Automotive
Communication (Wired and Wireless)
Consumer
Industrial
Computing/Data Storage
Data Center
AI
Government (Aerospace and Defense)
By Geography North America United States
Canada
Mexico
South America Brazil
Mexico
Argentina
Rest of South America
Europe Germany
France
United Kingdom
Nordics
Rest of Europe
Asia-Pacific China
Taiwan
South Korea
Japan
India
Rest of Asia-Pacific
Middle East and Africa Middle East Saudi Arabia
United Arab Emirates
Turkey
Rest of Middle East
Africa South Africa
Rest of Africa
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Key Questions Answered in the Report

What is the projected value of the semiconductor device market by 2030?

The global sector is forecast to reach USD 950.97 billion by 2030.

How fast will AI hardware grow compared with traditional communication chips?

AI-focused semiconductor sales are projected to rise at a 9.5% CAGR, outpacing the communication segment’s steady expansion.

Why are integrated circuits central to future revenue?

Integrated circuits hold 86.1% share and are advancing at 7.9% CAGR due to their role in AI, automotive, and industrial platforms.

Which region will expand semiconductor device output the most?

Asia-Pacific retains a 63.2% share and leads growth at a 7.1% CAGR, driven by Taiwan, South Korea, and China investments.

How do government incentives affect chip-supply resilience?

U.S. and EU CHIPS Acts channel billions into local fabs, diversifying supply and easing regulatory barriers for domestic procurement.

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