The global semiconductor market is experiencing unprecedented growth, with sales reaching $627.6 billion in 2024, reflecting a 19.1% increase from $526.8 billion in 2023, according to the Semiconductor Industry Association (SIA). Since 2019, the semiconductor industry growth has accelerated, fueling economic transformation, creating new jobs, and enabling advancements in AI, IoT, and automation.
This week, The People Weekly, an exclusive publication by PeopleLogic, explores the rising demand for semiconductors, their impact across industries, and the growing need for skilled talent in this fast-evolving sector.
Global Growth of the Semiconductor Industry & Major Markets
The semiconductor industry has witnessed remarkable expansion over the past few years. In 2024, global semiconductor revenue surged by 18%, underscoring the escalating demand for electronic devices and advanced technologies.
Asia-Pacific (APAC): The Powerhouse of Semiconductor Manufacturing
The Asia-Pacific (APAC) region dominates the semiconductor manufacturing landscape, with Taiwan, South Korea, and China at the forefront. Industry leaders like Taiwan’s TSMC and South Korea’s Samsung play a crucial role in supplying advanced chips to global tech companies. Meanwhile, Thailand is making strategic efforts to attract semiconductor investments, leveraging changes in global trade dynamics to strengthen its position in the market. As competition intensifies and supply chains evolve, APAC continues to be a key hub for chip production, driving innovation and supporting the growing demand for semiconductors worldwide.
United States: A Leader in Innovation & R&D
The United States remains a major player in the semiconductor industry, particularly in research and development. Leading companies like Intel and NVIDIA spearhead innovation, pushing the boundaries of artificial intelligence and high-performance computing. Their cutting-edge advancements drive technological progress, shaping the future of computing, automation, and digital transformation. With a strong focus on innovation, the U.S. continues to influence global semiconductor trends, fostering breakthroughs that enhance efficiency and capability across industries. As demand for smarter, faster chips grows, American firms play a pivotal role in shaping the next generation of semiconductor technologies.
Apart from these countries, Japan, China, Germany, Netherlands, UK and Malaysia also have significant semiconductor manufacturing capabilities.
India’s Semiconductor Ascent: A Rising Global Contender
India is swiftly emerging as a key contender in the global semiconductor industry. With a strong push toward self-reliance and technological advancement, the nation is making significant strides in semiconductor manufacturing and design. India’s semiconductor market is expected to grow from $52 billion (Rs 4.5 trillion) in 2024 to $103.4 billion (Rs 9 trillion) by 2030, according to a report by the India Electronics and Semiconductor Association (IESA). This rapid growth is fueled by government initiatives, increased investments, and rising demand across various sectors. As India strengthens its semiconductor ecosystem, it is poised to play a crucial role in the global supply chain.
Several factors contribute to this optimistic outlook:
Government Initiatives
India has ramped up funding for electronics PLIs, semiconductor development, and AI by 84%, allocating Rs 18,000 crore for the next fiscal year. This investment underscores the nation’s commitment to a self-reliant semiconductor ecosystem. By increasing financial incentives, the government aims to attract global manufacturers, boost local production, and strengthen India’s role in the global chip supply chain.
Major Investments
India’s semiconductor industry is gaining momentum with major investments, such as L&T Semiconductor’s $10 billion silicon fabrication plant. This reflects growing confidence in India’s manufacturing potential. With strong government backing and industry interest, the country is evolving into a competitive chip production hub. These advancements will enhance technological capabilities, draw further investments, and expand opportunities within the semiconductor supply chain, reinforcing India’s position in the global electronics and manufacturing landscape.
Segments in the Semiconductor Industry
The key segments in the semiconductor industry are
Discrete semiconductors
Integrated Circuits
Optoelectronics
Sensors and Actuators
Among these key segments, Integrated Circuits (ICs) emerge as the dominant player, with a projected market value of US$602.41 billion by 2025.
Drivers of Growth
The semiconductor industry is expanding rapidly, driven by multiple factors that continue to fuel its increasing demand. Several key elements are accelerating this growth, positioning semiconductors as a critical component in technological advancements across industries.
Demand for GenAI Chips
The rise of AI-driven applications is increasing the demand for AI chips and semiconductor technology. GenAI chips (such as GPUs, TPUs, NPUs, and ASICs) are crucial for AI, deep learning, and automation, making them a major driver of semiconductor industry growth.
Technological Advancements(5G, IoT, AI)
Innovations in 5G networks, AI, and IoT require advanced semiconductor chips with high processing power and energy efficiency. These technologies are pushing semiconductor manufacturers to develop next-gen solutions, fueling global semiconductor market expansion.
Consumer Electronics Boom
The surging adoption of smartphones, tablets, and laptops has significantly boosted demand for AI chips and semiconductor advancements. Consumers seek faster processors, longer battery life, and seamless connectivity, driving continuous innovation in semiconductor technology.
Automotive Industry Evolution
The transformation of the automotive sector has positioned semiconductors at its core. Modern vehicles now integrate advanced driver-assistance systems (ADAS), electric powertrains, infotainment units, and autonomous driving technologies—all of which rely on semiconductors. The shift toward electric vehicles (EVs) has further increased the demand for power-efficient and high-performance chips. As automakers strive for smarter, safer, and more energy-efficient vehicles, the semiconductor industry’s role in the future of mobility will continue to grow exponentially.
Economic Impact
The rapid expansion of the semiconductor industry has profound economic effects, influencing national economies and global trade. As demand for chips continues to rise, their role in economic stability and international commerce becomes even more significant.
GDP Contribution
The semiconductor industry significantly boosts the GDP of major manufacturing hubs like Taiwan, South Korea, the U.S., and China. These nations benefit from high revenue, job creation, and industrial expansion. As the sector grows, it accelerates progress in telecommunications, consumer electronics, and automotive industries, reinforcing economic stability. Investments in semiconductor R&D, fabrication plants, and supply chains drive long-term resilience and innovation-led growth.
Trade Dynamics
Semiconductors are central to global trade, influencing economic ties and trade balances. Nations with advanced chip production hold strategic advantages, driving competition, government incentives, and trade policies. Geopolitical factors further shape semiconductor trade, impacting global economic strategies.
Major players in the semiconductor industry
The semiconductor industry is dominated by key players driving innovation and global supply chains. TSMC (Taiwan Semiconductor Manufacturing Company) leads as the world’s largest contract chipmaker, producing advanced chips for companies like Apple and NVIDIA. Intel, a long-standing leader, focuses on both semiconductor design and manufacturing, investing heavily in AI and advanced processors. Samsung Electronics is a major player in memory chips and foundry services, competing closely with TSMC. NVIDIA, known for its GPUs, has become central to AI and data center markets. AMD (Advanced Micro Devices) rivals Intel in CPUs and GPUs, gaining market share in high-performance computing. Meanwhile, Qualcomm dominates mobile chipsets, powering smartphones worldwide, and Broadcom specializes in networking and connectivity solutions. ASML, the sole provider of extreme ultraviolet (EUV) lithography machines, plays a crucial role in advanced semiconductor manufacturing. Together, these companies drive the semiconductor industry’s rapid evolution, shaping the future of AI, IoT, and computing.
Semiconductor Industry: A Major Job Creator
The booming semiconductor industry is driving job creation in:
Research & Development (R&D): Engineers design next-gen AI chips and semiconductor solutions.
Manufacturing: Skilled workers manage precision-driven chip fabrication.
Quality Assurance: Ensuring high-performance semiconductor products.
Supply Chain Management: Overseeing raw material procurement and production logistics.
Research and Development (R&D)
Engineers and scientists in the R&D sector are at the forefront of the semiconductor revolution. They focus on designing new chips, enhancing performance, and creating innovative materials to improve the efficiency of semiconductor devices. Their work is essential to driving the technological breakthroughs that shape the future of electronics and computing.
Manufacturing
Semiconductor manufacturing requires skilled technicians and operators who specialize in the intricate processes of chip fabrication. These professionals manage the complex machinery and techniques used to produce semiconductor components, ensuring precision and high-quality output. Their expertise is crucial in meeting the high demand for chips across various industries.
Quality Assurance
Quality assurance professionals play a critical role in maintaining the reliability and standards of semiconductor products. They ensure that each chip meets the rigorous specifications required for performance, safety, and durability, thereby minimizing defects and ensuring customer satisfaction.
Supply Chain Management
Experts in supply chain management oversee the logistics of procuring raw materials, coordinating production, and distributing finished semiconductor products worldwide. Their work ensures the smooth flow of goods across global markets, optimizing efficiency and minimizing delays in the supply chain.
PeopleLogic Opinion
The semiconductor industry stands as a cornerstone of modern technology, driving innovation and economic growth across the globe. With strategic investments, supportive government policies, and a focus on developing skilled talent, both established and emerging players are well-positioned to harness the opportunities this dynamic industry presents. As the world becomes increasingly digital, the symphony of semiconductors will continue to play a pivotal role in shaping our future.
