Logic Semiconductor Market Size, Share, and Industry Analysis, By Type (Special Purpose Logic, General Purpose Logic, Display Drivers, Application Specific Integrated Circuits, and Programmable Logic Devices); By End-User (Telecommunication and Networking, Consumer Electronics, Automotive, Manufacturing, ICT and Aerospace and Defense, and Others), and Regional Forecast till 2032

The global logic semiconductor market is expanding owing to the rising consumer electronics demand, the popularity of electric vehicles, smartphone ownership, and the growth of communication infrastructure. Logic semiconductors are electronic components that govern the operation of other electronic devices by processing digital data. Digital circuits frequently construct compact microelectronic circuits, also known as logic gates, which easily generate combinational logic. When an excessive number of complex sequences or algorithms must be processed, a simple microcontroller is employed to build the embedded system.

Prominent corporations such as Samsung are allocating resources into production, bolstered by the advancements in wireless technologies and 5G technology. Chip utilization in critical technologies, as well as government investments in semiconductor design and manufacture, drive the market.

• In the next ten years, the U.K. government would invest up to EUR 1 billion (USD 1.05 billion), with a focus on intellectual property, compound semiconductors, and research and development.

• The CHIPS and Science Act in the U.S. has attracted over USD 200 billion in private investments for semiconductor ecosystem projects, creating thousands of jobs.
• SAMSUNG plans to invest KRW 133 trillion by 2030 to enhance system LSI and foundry operations, aiming to become the industry leader in memory and logic semiconductors and create 15,000 new jobs.

Impact of Generative AI on Logic Semiconductor Market

Chip design automation and optimization by AI are becoming more common. More complex logic circuit design should be possible with these machine learning algorithm-driven tools, which should also significantly reduce design cycle times and improve power efficiency. As they must invest in AI expertise and adapt their design processes to make room for these new tools, semiconductor manufacturers face both opportunities and obstacles from this development.

Logic Semiconductor Market Driver

Expansion of the Consumer Electronics to Drive the Market Growth

Growing population, urbanization, and rising household disposable income have all raised the demand for consumer electronics products. The increase in demand for consumer electronics equipment, such as TVs, washing machines, refrigerators, cell phones, and dish washers, is fueling the use of components such as flip-flop ICs, counter ICs, and encoder and decoder ICs.

• According to the India Brand Equity Foundation, the refrigerator, washing machine, and air conditioner industries in India have been estimated to have touched approximately USD 3.8 billion, USD 8.4 billion, and USD 3.34 billion respectively by 2021. The refrigerator sales were 14.5 million units in 2019 and are predicted to reach 27.5 million units by 2025.

Logic Semiconductor Market Restraint

Complex Manufacturing Processes May Restrain Industry Expansion

The global market is distinguished by complex manufacturing procedures that enable the creation of advanced microchips and integrated circuits. These procedures are critical as they influence the performance, efficiency, and reliability of semiconductor devices used in a wide range of applications, including consumer electronics, industrial automation, and beyond. Manufacturers in this sector use complicated production techniques such as photolithography, etching, doping, and deposition, all of which play important roles in the creation of nanoscale components on silicon wafers.

Logic Semiconductor Market Opportunity

Focus on Energy-Efficient Technologies

The global market is shifting toward energy-efficient technologies due to regulatory pressures, consumer demand for sustainable products, and technological advancements. This shift is influencing the design and production of chips, which are crucial in devices such as smartphones and industrial machinery. Technological innovations, such as smaller transistor sizes and low-power design methodologies, are contributing to this shift. Regulatory initiatives also push for stricter energy efficiency standards, prompting companies to invest in research and development.

• Intel's latest announcement highlights the shift to energy-efficient technologies, as the corporation announced a USD 33 billion investment in sophisticated production facilities and energy-efficient chips. This investment reflects a broader industry trend of increasing energy efficiency in response to regulatory restrictions and rising consumer demand for environmentally friendly technology.

Segmentation

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators
• Drivers, Restraints, Trends, and Opportunities
• Business Strategies Adopted by Key Players
• Consolidated SWOT Analysis of Key Players

Analysis by Type:

Based on type, the market is subdivided into special purpose logic, general purpose logic, display drivers, application specific integrated circuits, and programmable logic devices.

The general purpose logic segment holds the largest market share. These adaptable chips are vital parts of today's technological environment as they may be found in a broad variety of devices, including servers and laptops. They are cost-effective, as mass production keeps costs low and allows manufacturers to use them across different product lines without significant customization. They strike a balance between performance and energy efficiency, performing well across a broad spectrum of applications. As technology evolves, these chips adapt to changing requirements.

• In a recent release, NVIDIA emphasized the continuous supremacy of general-purpose logic chips, stating that its GPUs, a form of general-purpose logic semiconductor, generate significant revenue, adding to NVIDIA's USD 26 billion in annual revenues for fiscal year 2024. This demonstrates the chips' widespread adoption and essential position in a variety of high-performance computing and consumer electronics applications.

Analysis by End-User:

Based on end-user, the market is divided into telecommunication and networking, consumer electronics, automotive, manufacturing, ICT and aerospace and defense, and others.

The consumer electronics sector, primarily driven by smartphones, tablets, and smart home devices, relies heavily on logic semiconductors for processing capabilities. The telecommunication and networking sector has recorded the expansion of infrastructure to support data traffic and 5G networks, enabling faster data processing and transmission. In ICT, logic semiconductors power servers, data centres, and cloud computing platforms.

The growing adoption of AI and machine learning drives the demand for high-performance computing solutions. The aerospace and defence sectors rely on logic semiconductors for applications such as avionics and radar systems, requiring cutting-edge solutions for reliability, durability, and performance. The market segmentation reveals the importance of semiconductor manufacturers in meeting the evolving needs of a digitally interconnected world.

• According to the Consumer Technology Association (CTA), consumer electronics, including smartphones and smart home devices, will account for more than 45% of the global logic semiconductor market by 2024, owing to the increased device complexity and demand for advanced functionality. Furthermore, the International Data Corporation (IDC) predicts that the telecommunications and networking industries would grow at a 7% CAGR through 2026, driven by investments in 5G infrastructure and data centers.

Regional Analysis

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Based on region, the market has been studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Asia Pacific has emerged as a major player in the logic semiconductor business, with various countries contributing to its expansion. China, in particular, has enhanced its position as a vital participant, aided by rising domestic demand and expanded manufacturing capabilities. The region's increasing adoption of digital technologies, combined with investments in 5G infrastructure and artificial intelligence, has propelled industry growth. Furthermore, Southeast Asian nations such as South Korea and Taiwan were crucial links in the supply chain.

In 2023, the global logic semiconductor market experienced significant shifts, with North America holding a good position due to advanced technologies and strong demand from sectors such as automotive, consumer electronics, and industrial automation. Europe, with its focus on high-value applications and niche segments, maintained a steady presence. Countries such as Germany and the Netherlands lead in semiconductor manufacturing, emphasizing precision engineering and sustainable practices. Despite geopolitical uncertainties and supply chain disruptions, Europe's commitment to innovation and quality positions it as a significant contributor to the global market.

Distribution of Logic Semiconductor Market, By Region of Origin:

• North America – 25%
• South America –2%
• Europe – 15%
• Middle East and Africa – 3%
• Asia Pacific – 55%

Key Players Covered

The key players in this market include:

• Intel Corporation (U.S.)
• Samsung Electronics Co., Ltd (South Korea)
• Apple Inc. (U.S.)
• ARM Holdings Plc (U.K.)
• Fujitsu Semiconductor Inc. (Japan)
• Infineon Corporation AG (Germany)
• MediaTek Inc. (Taiwan)
• Qualcomm Incorporated (U.S.)
• Texas Instruments Inc. (U.S.)
• Marvell Technology Group (U.S.)

Key Industry Developments

• November 2023: Broadcom Inc., a worldwide technology company that designs, develops, and distributes semiconductor and infrastructure software solutions, acquired VMware, Inc.
• May 2023:  The British government shared plans to spend up to EUR 1 billion (USD 1.05 billion) over the next ten years to fund more research and development, increase international cooperation, and increase access to infrastructure. An additional EUR 200 million (USD 209.94 million) will be allocated between 2023 and 2025.
• April 2023: Intel Corporation announced that its semiconductor contract manufacturing division would collaborate with U.K.-based chip designer Arm Ltd., to ensure that mobile phone chips and other devices using Arm technology can be manufactured in Intel factories.