United
States semiconductor market is expected to grow with a steady CAGR for the
forecast period, 2024-2028. US semiconductor
companies continue to invest roughly one-fifth of annual revenue in R&D
amounting to a record USD 50.2 billion in 2021.
Moreover, the CHIPS and Science Act
focuses on investing USD 52 billion in chip manufacturing incentives and research
investments, as well as an investment tax credit for semiconductor
manufacturing and semiconductor equipment manufacturing. These investments are
expected to help strengthen U.S. leadership in chip technology and reinforce
America’s economy, national security, and supply chains.
Semiconductors refer
to substances that possess electrical conductivity properties, falling between
conductors and insulators. In business and technology, semiconductors play a
pivotal role in the development and production of electronic devices.
Semiconductors have
revolutionized various industries, including telecommunications, computing,
consumer electronics, and renewable energy. They pave the way for advancements
in miniaturization, efficiency, and performance of electronic devices, driving
innovation and enhancing functionality across a wide range of applications.
The emergence of
advanced technologies like the Internet of Things, artificial intelligence,
cloud computing, and big data analytics is expected to create lucrative
opportunities for the growth of the United States semiconductor market. The
rise in demand for faster and advanced memory chips for industrial applications
and the use of technologies to process large amounts of data in minimal time
significantly contributes to market growth.
Drivers for the
Semiconductor Market:
Technological
Advancements:
The semiconductor
industry has been significantly impacted by technological development and the
integration of technology in the new digital environment. The need for systems
on a chip (SOCs) with the greatest possible functional integration has led to an
increase in the number of semiconductor intellectual property (IP) cores.
Moreover, semiconductor memory IP has been directly impacted by the demand for
high-performance memory systems. The development of increasingly complicated
semiconductors that can support intensive memory operations is being driven by
the desire for quicker and more effective memory solutions. Advancements in
technology lead to an increase in demand and the development of more powerful,
lighter, and smaller semiconductors. The integration of technology in the new
digital ecosystem has opened up new opportunities for semiconductor
manufacturers and suppliers. Technologies such as AI, 5G, cloud computing, IoT,
and machine learning are driving the long-term requirement for semiconductors.
The integration of technology in the new digital ecosystem has had a major
impact on the semiconductor industry.
Growing Consumption:
The consumption of
electronic goods across the United States is constantly increasing due to the
rising demands from consumers for goods and services. The semiconductor market
in the United States has experienced an unmatched surge in demand for
electronics across various industries, driving exponential growth in the
sector. The consumer electronics industry stands as a major catalyst, with the
ubiquitous presence of smartphones, tablets, laptops, and smartwatches becoming
essential components of daily life. Advancements in display technologies,
processing power, and connectivity have fueled the need for cutting-edge semiconductors
that can meet the ever-evolving consumer demands.
Furthermore, the
rapid expansion of the Internet of Things (IoT) has led to an explosion of
connected devices, permeating everything from smart homes and wearables to
industrial automation and healthcare monitoring. As IoT applications continue
to flourish, the reliance on semiconductors for data processing, wireless
communication, and efficient performance has grown exponentially, further
boosting demand. The automotive industry has also undergone a technological
revolution, with the rise of electric vehicles (EVs) and advanced
driver-assistance systems (ADAS). Modern vehicles are equipped with a plethora
of electronic components, and semiconductor chips play a pivotal role in
managing battery systems, powering infotainment systems, processing sensor
data, and enabling autonomous driving capabilities.
Rapid Stepping up Toward Industry 4.0 and
Access of Industry 5.0:
Industry 4.0 has the potential to increase
efficiency, decrease waste, improve product quality, enhance manufacturing
flexibility, reduce operating expenses, and unlock numerous efficiencies.
Vision equipment, which utilizes data analytics technologies to access large
datasets for identifying and evaluating issues in defective products, is one of
the most significant developments in Industry 4.0. Industry 5.0 signals the end
of the traditional one-size-fits-all manufacturing model by enabling even more
customization to meet customer requirements. By enabling manufacturers to
overcome design complexities and better incorporate customer expectations into
the design process, automation advances manufacturing capabilities. Industry
5.0 represents the next phase of human-machine cooperation, combining human
knowledge and high-level mental processing to ensure the highest levels of
efficiency, safety, and environmental security in manufacturing. These elements
will ignite the development of machine vision systems in the semiconductor
industry.
Rapid Growth in the EV Sector:
The automotive industry's evolution
towards electric vehicles (EVs) and autonomous driving capabilities has been a
significant driver for the semiconductor market. The electric vehicle (EV)
market has grown rapidly in recent years and is expected to continue to grow at
a fast pace in the coming years. In recent years, the cost of electric vehicles
has been comparatively high due to the high manufacturing cost. The growth of
new startups in the electric vehicle segment has brought new innovative ideas
and technologies that have helped in reducing the production cost of vehicle
electrification. This has resulted in consumers shifting their focus to the
electric vehicle segment, especially in cities where gas emissions, congestion,
and mobility problems are raising the demand for new features in cars. The use
of semiconductors has enabled the replacement of manual systems with electric
systems. Electrification of vehicles offers additional benefits such as reduced
carbon emissions and increased fuel mileage. Additionally, advanced driver-assistance
systems (ADAS) and in-car infotainment systems rely on semiconductors for
functionality and safety.
Furthermore, numerous companies are
investing in promoting electric vehicles (EVs) due to increased cost
competitiveness with conventional gas vehicles and improved vehicle ranges. For
instance, General Motors aims to invest USD35 billion for EVs and self-driving
by 2025 and build four lithium-ion battery factories, while Ford will invest
USD29 billion. Similarly, vehicle manufacturers and battery makers plan to
invest USD860 billion globally by 2030 in the transition to EVs, with nearly a
quarter, USD210 billion, headed for the United States. They have also announced
that U.S. investments in EVs have totalled more than USD150 billion, with over
half of the USD210 billion of announced investment made in the U.S. allocated
for specific EV-related projects in 2021.
Thus, with the growing investment in the
EV industry, the U.S. semiconductor industry is likely to expand in the coming
years.
United States Semiconductor
Market: Trends
The United States
semiconductor market is witnessing several transformative trends that are
shaping the future, with the current trend of digital transformation. The rapid
expansion of the Internet of Things (IoT) has led to an explosion of connected
devices, permeating everything from smart homes and wearables to industrial
automation and healthcare monitoring. As IoT applications continue to flourish,
the reliance on semiconductors for data processing, wireless communication, and
efficient performance has grown exponentially, further boosting demand. The
automotive industry has also undergone a technological revolution, with the
rise of electric vehicles (EVs) and advanced driver-assistance systems (ADAS).
Modern vehicles are equipped with a plethora of electronic components, and
semiconductor chips play a pivotal role in managing battery systems, powering
infotainment systems, processing sensor data, and enabling autonomous driving
capabilities. Simultaneously, the healthcare sector has experienced significant
advancements in medical devices and technologies, all propelled by
semiconductors. From medical imaging equipment and wearable health devices to
diagnostic tools and remote patient monitoring, these innovative applications
rely on semiconductor chips to deliver accurate and real-time data for critical
medical decisions. Data centers and cloud computing services have witnessed
explosive growth to accommodate the ever-increasing demand for digital services
and storage. This boom has spurred the requirement for high-performance
semiconductors to power data processing, handle massive amounts of information,
and ensure seamless cloud-based services.
United States
Semiconductor Market: Challenges
The US semiconductor
market, despite its significant growth and global prominence, faces several
challenges that impact its competitiveness and sustainability. These challenges
stem from various factors. One of the primary challenges faced by the US
semiconductor market is increasing competition from other countries,
particularly in Asia. Nations like China, South Korea, Taiwan, and Japan have
made substantial investments in their semiconductor industries, fostering
innovation and production capabilities. This has led to the emergence of
formidable competitors that offer competitive pricing and advanced
technologies. Another challenge is the high cost associated with building and
operating semiconductor fabrication facilities (fabs). Establishing advanced
fabs requires massive capital investments, and the process involves complex
technological expertise. Smaller semiconductor companies may find it
challenging to enter this arena, limiting their ability to compete with
industry giants. Additionally, the talent gap in the semiconductor industry is
also a significant concern; the demand for skilled engineers, designers, and
technicians far exceeds the available talent. By tackling these challenges
proactively, the US semiconductor market can maintain its position as a global
leader and continue driving technological advancements that shape the future of
electronics and digital innovation.
Market Segments
United States semiconductor
market is segmented on the basis of component, node
size, application, type, material type, region and competitive landscape. Based
on component, the market is segmented into memory devices, logic devices,
analog IC, MPU, MCU, sensors, discrete power devices and others. Based on node
size, the market is segmented 28nm, 40nm, 65nm, 90nm, 120nm, 130nm. Based on
application, the market is segmented into IT & Telecommunication, defense
and military, industrial, consumer electronics, automotive and others. Based on
type, the market is segmented into intrinsic semiconductor and extrinsic
semiconductor. Based on material type, the market is segmented into silicon,
germanium and gallium arsenide. Based on region, the market is segmented into North, North East, South East,
South
and Mid-West.
Market Players
United States semiconductor market players include Intel Corporation, Nvidia Corporation,
Texas Instruments Incorporated, Microchip Technology, Analog Devices, Micron
Technology, Xilinx Inc., AMD Advanced Micro Devices, ON Semiconductor,
Qualcomm, NVIDIA Corporation.
Download Free Sample Report
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Attribute
|
Details
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Base Year
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2022
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Historic
Data
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2018 – 2021
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Estimated Year
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2023
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Forecast
Period
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2024 – 2028
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Quantitative Units
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Revenue in USD Million and CAGR for 2018-2022
and 2023-2028
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Report
coverage
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Revenue forecast,
company share, growth factors, and trends
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Segments covered
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By Component
By Node Size
By Application
By Type
By Material Type
By Region
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Regional
Scope
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North Region,
North East Region, South East Region, South Region, Mid-West Region
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Key
companies profiled
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Intel Corporation, Nvidia Corporation, Texas Instruments Incorporated,
Microchip Technology, Analog Devices, Micron Technology, Xilinx Inc., AMD
Advanced Micro Devices, ON Semiconductor, Qualcomm, NVIDIA Corporation
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Customization
scope
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10% free report customization with purchase. Addition
or alteration to country, regional & segment scope.
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Pricing and purchase options
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Avail customized purchase options to meet
your exact research needs. Explore purchase options
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Delivery
Format
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PDF and Excel through
Email (We can also provide the editable version of the report in PPT/Word format
on special request)
|
Report Scope:
In this report, United States semiconductor market has been
segmented into following categories, in addition to the industry trends which have
also been detailed below:
- United States Semiconductor Market,
By Component:
- Memory Devices
- Logic Devices
- Analog IC
- MPU
- MCU
- Sensors
- Discrete Power Devices
- Others
- United States Semiconductor Market,
By Node Size:
- 28nm
- 40nm
- 65nm
- 90nm
- 120nm
- 130nm
- United States Semiconductor Market,
By Application:
- IT & Telecommunication
- Defense and Military
- Industrial
- Consumer Electronics
- Automotive
- Others
- United States Semiconductor Market,
By Type:
- Intrinsic Semiconductor
- Extrinsic Semiconductor
- United States Semiconductor Market,
By Material Type:
- Silicon
- Germanium
- Gallium Arsenide
- United States Semiconductor Market,
By Region:
- North Region
- North East Region
- South East Region
- South Region
- Mid-West Region
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in the United States Semiconductor market.
Available Customizations:
Tech Sci Research offers customizations according
to a company’s specific needs. The following customization options are available
for the report:
Company Information
·
Detailed
analysis and profiling of additional market players (up to five).
United States Semiconductor market is an upcoming report to be released soon. If you wish an early delivery
of this report or want to confirm the date of release, please contact us at [email protected]