The rapid adoption of emerging technologies such as AI, ML, and IoT is driving significant demand for specialized semiconductor solutions in the semiconductor fabless market.
According to S&S Insider, “Semiconductor fabless market size was valued at USD 4.21 billion in 2023 and will reach USD 9.57 billion by 2032, growing at a CAGR of 9.60% over the forecast period 2024-2032. It is expected that.”
Innovating the semiconductor fabless market through rising demand and advanced technology
The growth of the semiconductor fabless market is primarily driven by the increasing demand for innovative semiconductor solutions across various sectors such as semiconductor fabless, automotive, and communications. The rise of advanced technologies such as artificial intelligence (AI), Internet of Things (IoT), and 5G has created an insatiable need for high-performance semiconductors. Additionally, the shift to electric vehicles and smart technology is accelerating demand for specialty chips and driving rapid innovation from fabless companies. Additionally, the ongoing digitalization across the industry is driving collaboration between fabless semiconductor companies and application developers, ensuring continued growth of the market.
Market size, segment analysis, competitive environment, regional analysis, DROC and SWOT analysis, forecast outlook
Major segments
• By type (microcontrollers (MCUs), digital signal processors (DSPs), graphics processing units (GPUs), application-specific integrated circuits (ASICs), power management ICs (PMICs), and others); • By end-use (consumer appliances, automotive, industrial, telecommunications, healthcare, etc.).
Main driving force
• Demand for semiconductor fabless components is increasing due to expansion of IoT • 5G expansion drives semiconductor fabless market growth
The semiconductor fabless market is experiencing significant growth due to the increasing demand for advanced devices and innovative manufacturing techniques across various industries.
The growing demand for fabless semiconductors is primarily due to the increasing use of advanced semiconductor devices in areas such as semiconductor fabless, healthcare, and automotive electronics. Improvements in manufacturing technology are further accelerating the growth of the semiconductor market. Demand for semiconductors continues to soar as industries undergo digital transformation, serving as a key growth engine for the market. The fabless semiconductor model is playing a key role in this landscape, as companies focus on designing and selling chips and outsourcing manufacturing to specialized foundries. This approach differs from the traditional integrated device manufacturer (IDM) model by giving fabless companies the freedom to innovate and minimize the capital expenditures associated with owning and operating a manufacturing facility. As rapid technological advances shape every aspect of the industry, fabless models have emerged as leaders in developing next-generation chips for diverse applications in the semiconductor fabless, automotive, industrial, telecommunications, and medical sectors. In the United States, semiconductor manufacturing capacity is projected to triple by 2032, reflecting a staggering 203% increase since the enactment of the CHIPS Act in 2022. This growth has made the United States the fastest growing region in the world, according to the Semiconductor Industry Association. Projections show that the United States will account for 28% of global capital investment in semiconductor manufacturing from 2024 to 2032. In a notable development, the semiconductor veteran is expanding into the domestic power electronics, renewable energy, electric vehicle charging and battery management sectors in India. The new venture, led by Raja Manickam, former CEO of Tata Electronics’ OSAT division, is partnering with the Tamil Nadu Industrial Development Corporation (TIDCO) to build a 20,000 sq ft chip and A testing facility for the module will be established and will be accessible to everyone. The same goes for other semiconductor companies.
If you have specific questions about the fabless semiconductor market or require customized research, request a call to our analyst @ https://www.snsinsider.com/request-analyst/4557.
ASIC market grows as semiconductor fabless demand drives semiconductor innovation and growth
In 2023, the application-specific integrated circuit (ASIC) market accounted for nearly 40.35% of global revenue due to the demand for custom-made products and advancements in technologies such as AI, ML, and 5G. Sectors such as automotive, semiconductor fabless, and telecommunications are investing heavily in ASIC development. In July 2024, Cyient announced the creation of a wholly-owned subsidiary to enhance its ASIC turnkey design and manufacturing capabilities in fabless models, with a focus on analog mixed-signal chips. This new subsidiary is intended to provide specialized ASIC design and chip sales, allowing Cyient to better adapt to market cycles and respond to industry needs.
In 2023, the semiconductor fabless sector is expected to dominate the market and contribute 37.78% to global revenue due to the growing demand for advanced and feature-rich electronic devices. The latest technological advances are driving the growth of semiconductor fabless for smartphones, tablets, smartwatches, and smart home devices, all of which require sophisticated and efficient semiconductor solutions. This trend extends to IoT devices and wearable technology, further increasing the demand for specialized semiconductor components. As consumers increasingly demand products with the latest technology, many semiconductor companies are actively developing new components to meet the needs of this growing market.
Asia-Pacific region leads semiconductor fabless market growth with innovation and demand
In 2023, Asia Pacific led the global semiconductor fabless market with a strong focus on electronics manufacturing and technological innovation, capturing 56.05% of the share. Key players in this market include China, South Korea, Japan, and India, which are home to a large number of fabless companies and end-use industries. Increasing demand for semiconductor fabless, IoT applications, and the deployment of 5G technology is further increasing the need for advanced semiconductor components in the region. Meanwhile, the U.S. semiconductor fabless market is projected to grow at a CAGR of 10.65% from 2024 to 2030, highlighting the need for R&D investment and skilled workforce to increase semiconductor design capabilities.
Buy Single User PDF of Semiconductor Fabless Market Report (33% Discount) @ https://www.snsinsider.com/checkout/4557
recent developments
In August 2024, VanEck introduced the VanEck Fabless Semiconductor ETF (SMHX), which targets fabless semiconductor companies that emphasize design and R&D over manufacturing.
In May 2024, Mindgrove Technologies, a fabless semiconductor startup backed by Peak XV Partners, launched India’s first commercial high-performance system-on-chip (SoC) called Secure IoT.
Larsen & Toubro Ltd. plans to invest more than $300 million in the fabless chip company in September 2024, with plans to design 15 products by the end of the year and begin sales in 2027.
Table of contents – main points
1. Introduction
2. Executive summary
3. Research method
4. Impact analysis of market dynamics
5. Statistical insights and trend reports
5.1 Semiconductor fabless wafer production volume (by region) (2023)
5.2 Semiconductor fabless chip design trends (past and future)
5.3 Utilization of semiconductor fabless production capacity (2023)
5.4 Supply chain indicators
6. Competitive environment
7. Semiconductor fabless market segmentation by type
8. Semiconductor fabless market segmentation by end-use
9. Regional analysis
10. Company profile
11. Use cases and best practices
12. Conclusion
Access more research insights on Semiconductor Fabless Market Growth and Outlook Report 2024-2032 @ https://www.snsinsider.com/reports/semiconductor-fabless-market-4557
(If you need more information or a customized survey, please email us at info@snsinsider.com)
About us:
SNS Insider is one of the leading market research and consulting agencies that dominates the global market research industry. Our goal is to provide our clients with the knowledge they need to function in changing conditions. We employ a variety of methodologies including global surveys, video talks, and focus groups to provide you with the most up-to-date and accurate market data, consumer insights, and opinions to help you make decisions with confidence. I am.
Contact: Contact: Akash Anand – Head of Business Development and Strategy info@snsinsider.com Phone: +1-415-230-0044 (US) | +91-7798602273 (India)
