According to the latest research report titled, “Semiconductor Market Report (2023 – 2028)” by Mordor Intelligence, the market is estimated at USD 0.65 trillion in 2023, and growing at a CAGR of 10.86% during the forecast period. 

The expanding use of consumer electronic products worldwide drives the semiconductor’s market expansion. The global demand for Artificial Intelligence (AI), the Internet of Things (IoT), and wirelessly connected devices is rapidly increasing. Micron Technologies Inc. offers multi-chip Packages (MCPs) and High-Capacity Memory (HCMs) that are supported by Artificial Intelligence (AI) training and are utilized in Mobile, Edge, Cloud, and Embedded Devices. Many of these novel discoveries are delivered with a Single System on a Chip (SoC) for a high degree of integration. In March 2023, the second-largest memory chip manufacturer in the world, SK Hynix, moved forward with plans to construct a USD 15 billion semiconductor chip facility in the US.  

Report Summary 

• Market Size (2023): USD 0.65 Trillion 
• Market Size (2028): USD 1.09 Trillion 
• CAGR (2023 – 2028): 10.86% 
• Study Period: (2020-2028) 
• Largest Growing Market: Asia Pacific 
• Fastest Growing Market: Asia Pacific 
• Forecast Units: Value (USD Trillion)   
• Report Scope: Market Dynamics, Revenue Forecast & Segmentation, Competitive Landscape & Recent Developments, Market Growth, Future Opportunities, and Trends    
• Key Market Drivers: Increasing Needs for Consumer Electronic Devices Boosting the Manufacturing Prospects, Proliferation of AI, IoT, and Connected Devices Across Industry Verticals, Increased Applications of Semiconductors in Automotive, and Increased Deployment of 5G and Rising Demand for 5G Smartphones. 

Which are The Top Companies in The Semiconductor Market? 

The Semiconductor industry landscape is highly competitive and populated by many players. The market already consists of numerous established companies, some major incumbents being Kyocera Corporation, Qualcomm Technologies Inc., and STMicroelectronics NV. 

In May 2023 – Micron Technology, Inc. announced that it would introduce Extreme ultraviolet (EUV) technology, a complex patterning technique to produce its 1-gamma node DRAM.  

Prominent players in the Semiconductor market are: 

Semiconductor Devices Market 

• Intel Corporation 
• Samsung Electronics Co. Ltd 
• Qualcomm Incorporated 
• Micron Technology Inc. 
• SK Hynix Inc. 
• Texas Instruments Incorporated 
• Broadcom Inc. 
• Mediatek Inc. 

Semiconductor Equipment Market 

• Applied Materials Inc. 
• ASML Holding NV 
• Tokyo Electron Limited 
• Lam Research Corporation 
• Kla Corporation 
• Advantest Corporation 
• Screen Holdings Co. Ltd 
• Teradyne Inc. 

Semiconductor Materials Market 

• BASF SE 

• LG Chem Ltd 
• Indium Corporation 
• Showa Denko Materials Co. Ltd 
• KYOCERA Corporation 
• Henkel AG & Co. KGAA 
• Sumitomo Chemical Co. Ltd 
• Dow Chemical Co. (Dow Inc.) 

Semiconductor Foundry Market 

• Taiwan Semiconductor Manufacturing Company (TSMC) Limited 
• Samsung Foundry (Samsung Electronics Co. Ltd) 
• United Microelectronics Corporation (UMC) 
• GlobalFoundries Inc. 
• Semiconductor Manufacturing International Corporation (SMIC) 
• Hua Hong Semiconductor Limited 
• Powerchip Technology Corporation 

Semiconductor OSAT Market 

• Advanced Semiconductor Engineering Inc. 
• Amkor Technology Inc. 
• Jiangsu Changjiang Electronics Technology Co. Ltd 
• Powertech Technology Inc. 

• Tongfu Microelectronics Co. Ltd 
• Tianshui Huatian Technology Co. Ltd 
• King Yuan Electronics Co. Ltd 

Other Reports that Might be of Your Interest 

• Hybrid Memory Cube Market Report: The Hybrid Memory Cube Market size is expected to grow from USD 1.26 billion in 2023 to USD 2.54 billion by 2028, at a CAGR of 15.11% during the forecast period (2023-2028) 
• Semiconductor Packaging Market Report: The semiconductor packaging market size is estimated at USD 95.40 billion in 2023 and is expected to reach USD 133.97 billion by 2028, registering a CAGR of 7.03% during the forecast period (2023-2028) 

 

Key Highlights from the Semiconductor Market Report 

1. 5G Expansion and Growing Smartphone Demand to Boost the Market 

• 5G, or the fifth generation of wireless technology for digital cellular, is driving massive potential for high-tech companies developing connected devices and intelligent products and the semiconductor fabs producing the chips utilized in the devices that enable 5G. 
• As per the GSM (Global System for Mobile Communications Association), by 2025, 5G networks are expected to cover one-third of the world’s population. 
• GSM organizations also predicted that 5G connections would surpass 1 billion by the end of 2022 and 2 billion by 2025, making up over a fifth of mobile connections. 
• The increasing pace of 5G wireless network rollouts across many regions benefits the telecommunications equipment suppliers and makers of 5G-enabled phones. This momentum also promises to provide a profitable new market for chipmakers in the coming years. 
• The rising commercialization of applications like AI and 5G is also fueling advancements in packaging platforms, like Fan-Out Packaging and the 3D Flip Chip technology, to address the high-power consumption needs and provide benefits such as more excellent chip connectivity. 
•  This forces many companies to collaborate with OSAT vendors; hence, many OSATs, such as ASE/ SPIL, Amkor, and JCET, invest in various advanced SiPs and fan-out technology to gauge their competition. 

2. Sensor Segment is Expected to Drive the Market 

The demand for smart sensors in the Internet of Things (IoT) and consumer electronics is expected to experience a significant surge in the near future, driven by a variety of factors such as the utilization of sensors in industrial processes, the need for improved safety and comfort for automobile manufacturers, and the rapid adoption of wireless technology for monitoring and controlling security devices with smart sensors. 

Investments in Industry 4.0 are rising globally. Organizations have started adopting Industry 4.0 smart solutions owing to the positive impact these solutions have on their businesses, including increased productivity. As per a report by the National Association of Software and Services Companies (NASSCOM), and Capgemini, it is expected that by 2025, more than two-thirds of the Indian manufacturing sector will embrace Industry 4.0. Dedicated industrial motion sensors based on micromachined sensing (MEMS) elements are available for Industry 4.0 applications. These have a wide mechanical frequency sensing bandwidth, high reliability, and accurate operation up to 105°C. 

What are the Latest Developments in the Semiconductor Market? 

• July 2023: Analog Devices Inc. revealed a significant investment exceeding USD 1 billion in expanding its semiconductor facilities located in Oregon. This ambitious expansion project is geared towards boosting production capacity, allowing the company to better cater to critical sectors such as communications, healthcare, industrial, automotive, and consumer electronics.   

• June 2023 – Micron Technology announced that it is on the verge of finalizing plans to invest a substantial amount of capital, at least USD 1 billion, in the establishment of a state-of-the-art chip packaging facility in India. This investment by the company marks a notable development in India’s efforts to bolster its domestic chip manufacturing capabilities. 
• May 2023 – Purdue University signed the contract with the India Semiconductor Mission’s leadership. It is the second significant international cooperation Purdue has announced this month. A relationship with Imec, located in Belgium, was announced on May 3 by Purdue, the state of Indiana, and the Indiana Economic Development Corporation. 

Mordor Intelligence Report on the Semiconductor Market segments the market based on product type, application, and geography:     

• By Semiconductor Devices (Market Size & Forecast based on Value (USD trillion), 2023-2028)   

• Discrete Semiconductors 
• Optoelectronics 
• Sensors 
• Integrated Circuits 

• By Integrated Circuits (Market Size & Forecast based on Value (USD trillion), 2023-2028)   

• Front-end Equipment 
• Back-end Equipment 

• By Semiconductors Materials (Market Size & Forecast based on Value (USD trillion), 2023-2028)   

• Fabrication 
• Packaging 

• By Outsourced Semiconductor Assembly Test Services (OSAT) Market (Market Size & Forecast based on Value (USD trillion), 2023-2028)   

• Packaging   
• Testing 

• By Geography (Market Size & Forecast based on Value (USD trillion), 2023-2028)   

• North America 
• Europe 

• Asia-Pacific 
• Latin America 
• Middle East and Africa 

In a nutshell, the Mordor Intelligence Market Research Report provides in-depth market insight to industry players, investors, researchers, consultants, and business strategists, looking for comprehensive details on the Semiconductor industry. Get a glance at the Semiconductor Market Report (2023 – 2028). 

About Mordor Intelligence 

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.  

With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.   

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