Global Semiconductor Device Market Size and Share

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Global Semiconductor Device Market Analysis by Mordor Intelligence

The semiconductor device market size stood at USD 702.44 billion in 2025 and is projected to reach USD 950.97 billion by 2030, rising at a 6.25% CAGR. This trajectory mirrors a structural transition away from general-purpose computing toward silicon optimized for artificial intelligence, electric mobility, and pervasive connectivity. Capacity additions prompted by sovereign technology programs and sustained capital inflows have pushed advanced node utilization near saturation in Taiwan, South Korea, and the United States. Integrated circuits maintained an 83.2% revenue share in 2024 as system-on-chip designs consolidated logic, memory, and analog functions on single dies, while discrete wide-bandgap devices surged for electric-vehicle powertrains. Geopolitical realignment, particularly the USD 39 billion CHIPS Act and EUR 43 billion (USD 50.62 billion) EU Chips Act, is redistributing manufacturing toward North America and Europe to mitigate Asia-centric risk. Tight lithography tool supply, however, continues to constrain sub-3 nm ramps, adding cost pressure and extending product cycles.

Key Report Takeaways

  • By device type, integrated circuits held 83.2% of the semiconductor device market share in 2024, while discrete wide-bandgap devices advanced at the fastest 8.7% CAGR through 2030. 
  • By technology node, the 5 nm category led with 34.3% revenue share in 2024; the 3 nm node is forecast to expand at an 8.7% CAGR to 2030. 
  • By business model, design/fabless vendors controlled 67.8% of the semiconductor device market size in 2024 and recorded the highest 8.1% CAGR outlook. 
  • By end-user vertical, communication applications accounted for 28.7% of demand in 2024, whereas government and aerospace are projected to grow at 7.4% CAGR through 2030. 
  • By geography, Asia Pacific commanded 81.3% revenue share in 2024; North American capacity incentives position the region for the quickest 6.9% CAGR to 2030.

Segment Analysis

By Device Type: Integrated Circuits Extend Leadership

Integrated circuits accounted for 83.2 % of 2024 revenue, underpinning the semiconductor device market size leadership of USD 585 billion that year. Logic SoCs for AI, memory stacks for HBM, and analog front-ends for automotive galvanized demand even as consumer electronics volumes plateaued. The segment’s 6.7 % CAGR through 2030 benefits from heterogeneous packaging that marries high-density logic chiplets with stacked DRAM and on-substrate power management. Integrated IC suppliers leveraged advanced fan-out and 2.5D interposers to raise bandwidth per watt, sustaining ASP resilience amid unit volatility.

Discrete devices, though smaller in absolute terms, now define high-value niches in electric mobility and renewables. Silicon carbide MOSFETs entered mass production on 200 mm wafers, lowering die cost and widening margin bridges over silicon IGBTs.[2]Infineon Technologies, “Infineon Launches World’s First Industrial Gallium Nitride Transistor Family,” infineon.com Gallium nitride power transistors with integrated Schottky diodes eliminated external rectifiers, reducing dead-time losses in 3 kW to 6 kW telecom power supplies. Optoelectronic components advanced at 10.25 % CAGR toward USD 9.83 billion by 2026 for LiDAR, optical interconnect, and machine-vision modules. Sensor categories tightened alignment with AI edge workloads, expanding revenue pools, and reinforcing the semiconductor device market’s structural diversity.

Note: Segment shares of all individual segments available upon report purchase

By Technology Node: 3 nm Becomes the Growth Pole

The 5 nm class dominated with 34.3 % semiconductor device market share in 2024 as it balanced density, yield, and cost for flagship smartphones and GPUs. Foundries kept utilization at full capacity through 2025, with average wafer pricing holding firm. The semiconductor device market size for 5 nm nodes is forecast to climb modestly until 2027, but growth shifts to 3 nm thereafter. At 8.7 % CAGR to 2030, 3 nm revenue acceleration stems from smartphone APs, AI accelerators, and emerging RISC-V server chips that need maximal transistor budget without sacrificing power efficiency.

Migrating from 5 nm to 3 nm demands double-patterning EUV, escalating mask sets, and EDA runtimes. Early adopters secure competitive headroom, yet smaller fabless outfits risk missing launch windows on constrained shuttle runs. Mature nodes above 28 nm remain relevant for automotive microcontrollers and industrial connectivity, where qualification cycles and reliability trump raw performance. Looking ahead, the three-way 2 nm race among TSMC, Samsung, and Intel will hinge on gate-all-around transistors. China’s constrained access ensures leading-edge capacity stays clustered in Taiwan, South Korea, and the United States, reinforcing geographic concentration within the semiconductor device market.

By Business Model: Fabless Vendors Expand Influence

Design-centric companies captured 67.8 % of revenue in 2024, illustrating how the fabless paradigm channels capex toward R&D instead of facilities. Their 8.1 % CAGR to 2030 outpaces the overall semiconductor device market as nimble AI-chip and sensor startups tap specialist foundries for advanced nodes. IP-rich firms monetize differentiated architectures and software stacks, elevating gross margins even as wafer costs rise.

Integrated device manufacturers adapted by unbundling services; Intel’s contract-manufacturing pivot highlights attempts to leverage depreciated older fabs for external customers. Foundry consolidation intensified when discussions surfaced around pairing GlobalFoundries with UMC to achieve scale against TSMC’s 60 % advanced-process command. Such moves could rebalance bargaining power but accentuate the semiconductor device market’s capital threshold. Asset-light strategies are likely to dominate innovation-heavy segments, while IDMs focus on auto, power, and military niches where qualification depth and supply assurance matter most.

Global Semiconductor Device Market: Market Share by Business Model

By End-user Vertical: Communications Retain Demand Leadership

Communications absorbed 28.7 % of 2024 shipments as 5G base-station rollouts and 800 G switch upgrades demanded custom RF and SerDes silicon. Baseband SoCs and front-end modules proliferated across frequency variants, boosting BOM value for each small cell and smartphone. Optical transceiver ASPs rose as cloud providers shifted to 200 G and 400 G per lane, increasing indium-phosphide and silicon-photonics content.

Government and aerospace budgets grew fastest at 7.4 % CAGR on electronic-warfare upgrades and satellite mega-constellations. Radiation-hardened devices carry ASPs up to 10 × commercial equivalents, offering margin insulation against cyclicality. Automotive followed closely as EV and ADAS volumes scaled, raising SiC inverter content and sensor MCU attach rates. Industrial automation benefited from predictive-maintenance deployments that married sensors to low-power AI edge accelerators, adding new layers to the semiconductor device market size equation.

Geography Analysis

Asia Pacific generated 81.3 % of 2024 revenue, cementing its role as the semiconductor device market’s manufacturing epicenter. Taiwan dominated wafer-foundry value capture, holding 66 % of advanced-node capacity, while South Korea controlled memory leadership through Samsung and SK Hynix. Chinese players expanded 28 nm and above lines under the National Integrated Circuits Fund, yet advanced-node access remained limited by export controls. The region’s 6.9 % CAGR outlook reflects both organic electronics demand and continued capex, albeit tempered by geopolitical uncertainty.

North America’s CHIPS Act incentives accelerated greenfield construction, with 18 fabs beginning build in 2025, four of them in the Americas.[3]Evertiq, “Eighteen New Semiconductor Fabs Start Construction in 2025,” evertiq.com Arizona and Texas attracted multi-billion-dollar clusters spanning logic, memory, and packaging, lifting the semiconductor device market size locally and targeting a 22 % advanced-node share by 2027. Government funding of USD 179 million for Microelectronics Science Research Centers underscored efforts to lead in energy-efficient and extreme-environment devices.

Europe chased supply-chain resilience through the EU Chips Act, focusing on power electronics and auto-grade semiconductors aligned with regional OEM strength. Subsidies supporting TSMC’s Dresden project and STMicroelectronics’ SiC capacity aimed to double the continent’s market share to 20 % by 2030. Energy-price volatility remains a headwind, but long-term purchase agreements and renewable integration seek to stabilize fab operating costs.

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

Competitive Landscape

The top 10 suppliers controlled majority of 2024 revenue, underscoring a consolidated structure reinforced by USD-scale capex barriers. TSMC safeguarded its technology lead with a planned USD 100 billion U.S. investment through 2029, broadening Arizona operations and embedding itself in Western supply chains.[4]The New York Times, “TSMC to Spend $100 Billion in U.S. Over the Next Four Years,” nytimes.com Samsung balanced memory dominance with foundry ambitions, while NVIDIA’s CUDA ecosystem and H100 accelerators locked in hyperscale share gains. Intel’s IDM 2.0 strategy aimed to blend internal products and external customer wafers, challenging pure-play foundries.

Competitive dynamics now pivot on packaging, IP portfolios, and software integration. AMD leveraged chiplet-based processor designs to match monolithic rivals on performance per watt, proving the value of advanced interconnects. Patent cross-licensing remained a critical defense as standards-essential IP in 5G and USB4 secured royalty streams. M&A continued when Synopsys completed the USD 35 billion Ansys deal, creating an EDA-plus-simulation powerhouse capable of holistic system optimization.

Strategic partnerships rose in importance: automotive OEMs signed long-term capacity agreements, and cloud providers co-developed AI accelerators with foundries to assure supply. Against this backdrop, talent retention emerged as a soft-power determinant, with projected U.S. engineering shortfalls between 67,000 and 146,000 by 2030 threatening growth. Firms able to couple technical leadership with workforce pipelines will sustain an advantage as the semiconductor device market enters its next scaling phase.

Global 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

  • March 2025: TSMC announced a USD 100 billion U.S. investment over four years, expanding Arizona advanced-node fabs.
  • February 2025: Infineon delivered the first 200 mm SiC wafers to customers, improving power-device economics.
  • January 2025: U.S. Department of Energy granted USD 179 million to three Microelectronics Science Research Centers.
  • January 2025: SEMI reported construction starts on 18 new fabs slated to begin operations between 2026 and 2027, four in the Americas.

Table of Contents for Global 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 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 AND VOLUME)

  • 5.1 By Device Type
    • 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 LEDs
    • 5.1.2.2 Image Sensors
    • 5.1.2.3 Laser Diodes
    • 5.1.2.4 Infra-red Devices
    • 5.1.3 Sensors
    • 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 Analog
    • 5.1.4.2 Logic
    • 5.1.4.3 Memory
    • 5.1.4.4 Micro
    • 5.1.4.4.1 Microprocessors (MPU)
    • 5.1.4.4.2 Microcontrollers (MCU)
    • 5.1.4.4.3 Digital Signal Processors (DSP)
  • 5.2 By Technology Node (This is only applicable for IC segment and not for Discrete and Optoelectronics Segments)
    • 5.2.1 < 3nm
    • 5.2.2 3nm
    • 5.2.3 5nm
    • 5.2.4 7nm
    • 5.2.5 16nm
    • 5.2.6 28nm
    • 5.2.7 > 28nm
  • 5.3 By Business Model
    • 5.3.1 IDM
    • 5.3.2 Design/ Fabless Vendor
  • 5.4 By End-user Vertical
    • 5.4.1 Automotive
    • 5.4.2 Communication – Wired
    • 5.4.3 Communication – Wireless (incl. 5G)
    • 5.4.4 Consumer Electronics
    • 5.4.5 Industrial Automation and IIoT
    • 5.4.6 Computing and Data Storage
    • 5.4.7 Government – Aerospace and Defense
    • 5.4.8 Healthcare and Medical Devices
    • 5.4.9 Energy and Utilities
  • 5.5 By Geography
    • 5.5.1 North America
    • 5.5.1.1 United States
    • 5.5.1.2 Canada
    • 5.5.1.3 Mexico
    • 5.5.2 Europe
    • 5.5.2.1 Germany
    • 5.5.2.2 France
    • 5.5.2.3 United Kingdom
    • 5.5.2.4 Nordics
    • 5.5.2.5 Rest of Europe
    • 5.5.3 Asia-Pacific
    • 5.5.3.1 China
    • 5.5.3.2 Taiwan
    • 5.5.3.3 South Korea
    • 5.5.3.4 Japan
    • 5.5.3.5 India
    • 5.5.3.6 Rest of Asia-Pacific
    • 5.5.4 South America
    • 5.5.4.1 Brazil
    • 5.5.4.2 Mexico
    • 5.5.4.3 Argentina
    • 5.5.4.4 Rest of South America
    • 5.5.5 Middle East and Africa
    • 5.5.5.1 Middle East
    • 5.5.5.1.1 Saudi Arabia
    • 5.5.5.1.2 United Arab Emirates
    • 5.5.5.1.3 Turkey
    • 5.5.5.1.4 Rest of Middle East
    • 5.5.5.2 Africa
    • 5.5.5.2.1 South Africa
    • 5.5.5.2.2 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 Discrete Semiconductors Diodes
Transistors
Power Transistors
Rectifier and Thyristor
Other Discrete Devices
Optoelectronics LEDs
Image Sensors
Laser Diodes
Infra-red Devices
Sensors Pressure
Magnetic Field
Actuators
Acceleration and Yaw Rate
Temperature and Others
Integrated Circuits Analog
Logic
Memory
Micro Microprocessors (MPU)
Microcontrollers (MCU)
Digital Signal Processors (DSP)
By Technology Node (This is only applicable for IC segment and not for Discrete and Optoelectronics Segments) < 3nm
3nm
5nm
7nm
16nm
28nm
> 28nm
By Business Model IDM
Design/ Fabless Vendor
By End-user Vertical Automotive
Communication – Wired
Communication – Wireless (incl. 5G)
Consumer Electronics
Industrial Automation and IIoT
Computing and Data Storage
Government – Aerospace and Defense
Healthcare and Medical Devices
Energy and Utilities
By Geography North America United States
Canada
Mexico
Europe Germany
France
United Kingdom
Nordics
Rest of Europe
Asia-Pacific China
Taiwan
South Korea
Japan
India
Rest of Asia-Pacific
South America Brazil
Mexico
Argentina
Rest of South America
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
Discrete Semiconductors Diodes
Transistors
Power Transistors
Rectifier and Thyristor
Other Discrete Devices
Optoelectronics LEDs
Image Sensors
Laser Diodes
Infra-red Devices
Sensors Pressure
Magnetic Field
Actuators
Acceleration and Yaw Rate
Temperature and Others
Integrated Circuits Analog
Logic
Memory
Micro Microprocessors (MPU)
Microcontrollers (MCU)
Digital Signal Processors (DSP)
By Technology Node (This is only applicable for IC segment and not for Discrete and Optoelectronics Segments)
< 3nm
3nm
5nm
7nm
16nm
28nm
> 28nm
By Business Model
IDM
Design/ Fabless Vendor
By End-user Vertical
Automotive
Communication – Wired
Communication – Wireless (incl. 5G)
Consumer Electronics
Industrial Automation and IIoT
Computing and Data Storage
Government – Aerospace and Defense
Healthcare and Medical Devices
Energy and Utilities
By Geography
North America United States
Canada
Mexico
Europe Germany
France
United Kingdom
Nordics
Rest of Europe
Asia-Pacific China
Taiwan
South Korea
Japan
India
Rest of Asia-Pacific
South America Brazil
Mexico
Argentina
Rest of South America
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 current size of the semiconductor device market?

The semiconductor device market was valued at USD 702.44 billion in 2025 and is forecast to reach USD 950.97 billion by 2030.

Which segment holds the largest semiconductor device market share?

Integrated circuits dominated with 83.2 % revenue share in 2024, reflecting widespread system-on-chip adoption.

Why is 3 nm technology growing fastest?

Smartphones and AI accelerators require higher transistor density and lower power, pushing 3 nm node revenue at an 8.7 % CAGR through 2030.

How will the CHIPS Act influence geographic dynamics?

U.S. incentives are expected to raise North America’s advanced-node capacity share from 10 % in 2024 to 22 % by 2027, improving supply resilience.

What role do wide-bandgap semiconductors play in electric vehicles?

Silicon carbide and gallium nitride devices cut inverter losses, enabling faster charging and smaller battery packs, which drives strong power-device revenue growth.

Are lithography tool shortages a long-term concern?

Yes, lead times exceeding 18 months for EUV systems are delaying sub-3 nm ramps, constraining short-term supply, and moderating growth.

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