Semiconductor Market To Cross 1 Trillion By 2030

Tajammul Pangarkar
Tajammul Pangarkar

Updated · Jun 18, 2024

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The global semiconductor market is expected to grow significantly in the coming years, reaching a valuation of USD 1,307.7 billion by 2032 from USD 547.2 billion in 2023, with a CAGR of 8.8%. This growth is driven by several factors, including the increasing demand for semiconductors in automotive, data centers, and high-performance computing (HPC). Additionally, the proliferation of technologies such as artificial intelligence (AI), the Internet of Things (IoT), and 5G is fueling the need for advanced chipsets and integrated circuits.

Recent developments in the semiconductor sector include a series of mergers, acquisitions, and funding activities, indicating robust industry growth and strategic realignments. In January 2024, Infosys completed the acquisition of InSemi, a leading semiconductor design and embedded services provider, enhancing its capabilities in Engineering R&D services and reinforcing its commitment to the semiconductor ecosystem. This acquisition, valued at around USD 1 billion, will bolster Infosys’ Chip-to-Cloud strategy and expand its AI and automation platform offerings.

In another significant move, Analog Devices Inc. (ADI) announced the acquisition of Maxim Integrated Products for approximately USD 21 billion, aiming to strengthen its position in the analog semiconductor market. This merger, which closed in mid-2023, is expected to generate annual cost savings of $275 million within two years of closing and bolster ADI’s growth in automotive and data center markets.

Moreover, Intel Corporation acquired Tower Semiconductor for USD 5.4 billion, a strategic move to expand its foundry services and enhance its semiconductor manufacturing capabilities. This acquisition, finalized in February 2023, positions Intel to better serve the growing demand for specialty analog chips.

These strategic acquisitions and mergers reflect the semiconductor industry’s dynamic landscape, marked by significant investments aimed at leveraging technological advancements and expanding market presence.

However, the semiconductor market also faces challenges. Supply chain disruptions and geopolitical tensions could hinder growth. Additionally, the physical limits of Moore’s Law, which predicts the doubling of transistors on a microchip approximately every two years, are becoming more apparent, necessitating new approaches like chiplets and co-packaged optics to maintain performance improvements.

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Key Takeaways

  • The global Semiconductor Market is projected to reach USD 1,307.7 billion by 2032, growing at a steady CAGR of 8.8% from USD 625.2 billion in 2023.
  • Memory Devices are expected to increase their share to approximately 27.9% of semiconductor sales by 2023, up from 26.3% in 2022.
  • Semiconductor capital spending is forecasted to decrease by about 19.7% in 2023, reaching around USD 92.1 billion.
  • Asia-Pacific dominates the semiconductor market with a share of 51.5%, driving its global expansion.
  • Silicon holds the largest share (46.5%) among semiconductor materials due to its stability and versatility.
  • The 16/14nm node size leads the market with a significant share of 28.0%, despite ongoing shifts towards smaller sizes like 7nm and 5nm.
  • The telecommunications sector accounts for the largest application share at 37.0%, driven by increasing remote work demands.
  • Nvidia leads the semiconductor industry with a market capitalization of approximately USD 1,941 billion as of February 2024.
  • Taiwan Semiconductor Manufacturing Company (TSMC) and Broadcom follow, with market values of around USD 660.64 billion and USD 597.54 billion, respectively.
  • Apple is projected to achieve a market capitalization of about USD 3 trillion by the end of 2023.
  • Hybrid electric vehicles can incorporate up to 3,500 semiconductor chips, underscoring their significant impact on automotive technology.
  • Key players in the semiconductor market include NXP Semiconductors, MediaTek Inc., TOSHIBA Corporation, Infineon Technologies, AMD, Maxim Integrated, Samsung Electronics, SK Hynix, Intel, and others.

Semiconductor Statistics

  • The global semiconductor industry grew by over 20% in sales, reaching approximately $600 billion in 2021.
  • Annual growth for the semiconductor industry is projected to average between 6% to 8% up to 2030.
  • The industry is anticipated to become a trillion-dollar market by 2030.
  • Assuming an average annual price increase of about 2%, the semiconductor industry’s growth trajectory supports reaching $1 trillion by 2029.
  • Analysis of 48 listed companies in the semiconductor sector reveals expected revenue growth rates ranging from 6% to 10% up to 2030.
  • EBITA margins for semiconductor companies are forecasted to range from 25% to 30%.
  • The automotive, computation and data storage, and wireless sectors are expected to drive about 70% of industry growth.
  • The automotive industry’s demand for semiconductors could triple by 2030, driven by applications like autonomous driving and electric vehicles.
  • The semiconductor content cost in a Society of Automotive Engineers (SAE) Level 4 electric vehicle could rise to $4,000 by 2030, up from $500 for an SAE Level 1 internal-combustion engine car.
  • The automotive sector’s share of semiconductor demand may increase from 8% in 2021 to 13-15% by 2030.
  • Growth in the computation and data storage segment is projected at 4% to 6%, fueled by demand for servers supporting AI and cloud computing applications.
  • The wireless segment, driven by smartphone demand and 5G growth, is expected to see significant expansion.
  • Semiconductor demand from smartphones is set to increase, particularly in mid-tier segments of emerging markets.
  • By 2030, the wireless segment could drive substantial industry growth.
  • Investment in R&D, manufacturing facilities, and strategic sourcing will be critical for semiconductor companies aiming to capitalize on growth opportunities.
  • Global semiconductor industry sales reached $46.4 billion in April 2024, showing a 15.8% increase year-over-year from $40.1 billion in April 2023.
  • Semiconductor sales in the first quarter of 2024 totaled $137.7 billion, a 15.2% increase compared to the first quarter of 2023.

Recent Developments

Mergers and Acquisitions:

  • Infosys Acquired InSemi: In January 2024, Infosys completed the acquisition of InSemi, a leading semiconductor design and embedded services provider. This enhances Infosys’s Engineering R&D services capabilities and supports its Chip-to-Cloud strategy.
  • Analog Devices and Maxim Integrated: In mid-2023, Analog Devices Inc. acquired Maxim Integrated Products for approximately USD 21 billion, aiming to strengthen its position in the analog semiconductor market and generate annual cost savings of USD 275 million.
  • Intel Acquired Tower Semiconductor: In February 2023, Intel Corporation completed the acquisition of Tower Semiconductor for USD 5.4 billion, enhancing its foundry services and semiconductor manufacturing capabilities.

New Product Launches:

  • IBM’s AI Accelerator Chip: IBM researchers designed a four-core AI accelerator chip using high-performance seven-nanometer technology, achieving significant energy efficiency.
  • Advanced Processes by TSMC, Samsung, and Intel: Major players in the semiconductor industry, such as TSMC, Samsung, and Intel, have been advancing their foundry processes, focusing on energy-efficient and high-performance chips for AI and consumer electronics.

Funding Activities:

  • Generative AI Investments: The generative AI sector saw substantial investments in 2023, with over USD 19 billion secured across 198 financing rounds. Key investors included Alphabet, Amazon, and Microsoft, supporting companies like OpenAI and Anthropic.
  • US Government Funding: The Biden-Harris administration announced over USD 5 billion in expected investment in the CHIPS R&D program, including the National Semiconductor Technology Center, to bolster semiconductor manufacturing and innovation.

Key Players Analysis

NVIDIA Corporation

NVIDIA Corporation has solidified its position as a leader in the semiconductor sector with numerous strategic advancements and innovations. In recent developments, NVIDIA announced the expansion of its collaboration with Amazon Web Services (AWS) to host NVIDIA DGX Cloud on AWS, enhancing AI and data analytics capabilities.

The company introduced several new products, including the NVIDIA NeMo Retriever for generative AI, the MONAI cloud APIs for medical imaging, and the GeForce RTX 40 SUPER Series GPUs, which feature the latest in AI and graphics technology. NVIDIA also announced significant partnerships, such as with Amgen to leverage NVIDIA DGX SuperPOD for drug discovery and diagnostics, and with Singtel to bring generative AI services to Singapore using energy-efficient data centers built with NVIDIA Hopper architecture GPUs.

Additionally, NVIDIA reported a 22% increase in quarterly revenue, reaching $22.1 billion, highlighting its robust financial performance and continued growth in sectors such as gaming, automotive, and professional visualization.


Taiwan Semiconductor Manufacturing Company (TSMC) has been actively advancing its position in the semiconductor sector through significant developments. In early 2024, TSMC projected revenue growth of 8% to $18.8 billion for the March quarter, indicating a recovery in tech demand and a strong outlook for the year.

The company is also increasing its capital expenditure to between $28 billion and $32 billion, up from $30 billion in 2023, to support the development of advanced process nodes such as N3 and N2 by 2025. Additionally, TSMC has secured a $6.6 billion agreement from the Biden Administration to develop three new fabs in Phoenix, Arizona, enhancing its manufacturing capabilities in the U.S. This investment aims to bolster TSMC’s production of advanced semiconductors and support the broader tech recovery.

Moreover, TSMC reported a 34.3% year-over-year revenue increase in March 2024, driven by strong demand for AI processors and advanced packaging technologies.

Intel Corporation

Intel Corporation remains a pivotal player in the semiconductor sector, driving significant advancements and strategic expansions. In early 2024, Intel launched its next-generation data center product, Granite Rapids, on Intel 3 technology and commenced high-volume manufacturing at its newly opened Fab 34 in Ireland. This fab, which represents Intel’s first use of extreme ultraviolet lithography (EUV) in high-volume manufacturing in Europe, is part of a joint venture with Apollo, aimed at bolstering Intel’s production capabilities. Intel also announced a major investment in Europe, planning to spend over €33 billion on semiconductor R&D and manufacturing across Germany, Ireland, and Italy.

Additionally, Intel unveiled its expanded process technology roadmap, including specialized nodes like Intel 14A, and secured nearly 50 customer test chips for its foundry business. The company continues to push its sustainability agenda, achieving 99% renewable electricity usage in its factories worldwide by the end of 2023. These efforts underscore Intel’s commitment to advancing semiconductor technology and maintaining its leadership in the industry.

Broadcom Inc

Broadcom Inc. continues to be a key player in the semiconductor sector with several significant developments in 2023 and 2024. Broadcom announced a multibillion-dollar deal with Apple to develop 5G radio frequency components, including FBAR filters, which will be manufactured in the U.S. This partnership is part of Apple’s $430 billion investment in the U.S. economy.

Additionally, Broadcom completed the acquisition of VMware, which has enhanced its software-defined edge portfolio, including 5G, SD-WAN, and SASE solutions. At the Mobile World Congress 2024, Broadcom unveiled new product innovations in these areas, aiming to modernize networks and create new monetizable services for communication service providers. Broadcom also reported strong financial performance, with significant revenue growth and new strategic initiatives aimed at expanding its technological capabilities and market reach.


QUALCOMM Incorporated has made significant strides in the semiconductor sector with several key developments in recent years. In early 2024, Qualcomm reported robust financial performance with revenues reaching $9.9 billion for the first fiscal quarter. The company has continued to innovate, unveiling the Qualcomm FastConnect 7900, which integrates Wi-Fi 7, Bluetooth, and Ultra Wideband technologies, enhancing AI-optimized performance for various connectivity applications. Qualcomm has also been instrumental in advancing the RISC-V ecosystem by joining forces with other industry leaders to promote next-generation hardware development.

At the Mobile World Congress 2024, Qualcomm introduced groundbreaking innovations across its AI and connectivity portfolios, focusing on bringing generative AI capabilities to devices through the Qualcomm AI Hub. Additionally, Qualcomm announced a multiyear, multibillion-dollar partnership with Apple to develop 5G components, highlighting its pivotal role in the evolution of wireless technology and connectivity solutions.

SK Hynix Inc

SK Hynix Inc. has been actively advancing its position in the semiconductor sector with several notable developments. The company announced a significant investment of $3.87 billion to build an advanced packaging and R&D facility in West Lafayette, Indiana. This facility will focus on producing high-bandwidth memory (HBM) chips, crucial for AI applications, and is expected to begin mass production in the second half of 2028.

SK Hynix also started mass production of the industry’s first 24GB LPDDR5X mobile DRAM, enhancing the performance of mobile devices and AI systems. Additionally, at CES 2024, SK Hynix showcased its next-generation semiconductor technologies designed to revolutionize AI capabilities.

These initiatives underscore SK Hynix’s commitment to innovation and its strategic role in advancing semiconductor technology for AI and other high-performance applications.


In conclusion, despite the challenges, the semiconductor market is poised for robust growth due to technological advancements and increasing demand across various sectors. The continuous innovation and adaptation to new technologies are expected to drive the market forward, ensuring its critical role in the global economy.

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Tajammul Pangarkar

Tajammul Pangarkar

Tajammul Pangarkar is a CMO at Prudour Pvt Ltd. Tajammul longstanding experience in the fields of mobile technology and industry research is often reflected in his insightful body of work. His interest lies in understanding tech trends, dissecting mobile applications, and raising general awareness of technical know-how. He frequently contributes to numerous industry-specific magazines and forums. When he’s not ruminating about various happenings in the tech world, he can usually be found indulging in his next favorite interest - table tennis.

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