A report by Precedence Research indicates that the global semiconductor industry is poised for significant growth. Projections show that market revenues are expected to rise from USD 627.76 billion in 2025 to approximately USD 1,207.51 billion by 2034. This reflects a compound annual growth rate (CAGR) of 7.54 per cent.

Asia Pacific's Dominance in Semiconductor Production

Asia Pacific has solidified its position as a pivotal hub in the semiconductor sector, accounting for over 52 per cent of the global market share in 2024. This dominance is largely due to the region's robust electronics industry and substantial consumer base. Notably, countries like China, Taiwan, and South Korea have become central to semiconductor manufacturing and consumption.

Read recent news on Telecom sector here!

Government Initiatives Fuelling Manufacturing Growth

Governments worldwide are actively investing to bolster their semiconductor manufacturing capacities:

India: The Indian government introduced the 'Semicon' programme with an allocation of Rs.76,000 crore, aiming to enhance domestic semiconductor production.

United States: The CHIPS Act of 2022 earmarked $52 billion to support chip manufacturing, offering incentives and tax credits to semiconductor companies. Additionally, Intel announced a $20 billion investment in two new semiconductor factories in Ohio.

Canada: The Canadian government plans to invest $181.94 million to strengthen its domestic semiconductor production industry.

Industry Leaders Driving Production

Leading companies are making significant contributions to semiconductor production:

Taiwan Semiconductor Manufacturing Co. (TSMC): In 2022, TSMC reported revenues of $75.881 billion and, as of 2023, produces approximately 10 million semiconductor wafers annually.

SK Hynix: In March 2023, SK Hynix announced plans to invest $15 billion in constructing a semiconductor chip facility in the United States.

Read recent news on AI here!

Trade Dynamics and Export Growth

The semiconductor trade landscape is witnessing notable shifts:

United States: In 2022, the U.S. exported semiconductors valued at $61.1 billion.

China: In April 2023, China's semiconductor device exports reached $6.02 billion, with significant shipments to the Netherlands valued at $1.07 billion.

These developments underscore the semiconductor industry's dynamic nature, highlighting the combined impact of governmental initiatives, corporate investments, and evolving trade patterns in shaping its future.