This market research report was originally published at the Yole Group’s website. It is reprinted here with the permission of the Yole Group.
Entering a new growth cycle, the surge in the semiconductor industry is driven by the rise of generative AI processors and HBM[1]
OUTLINE
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Market evolution: with a $672 billion market in 2024[2], Yole Group anticipates a substantial 6.8% CAGR[3] over the next years
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Technology status: the industry is shifting back to More Moore dominance, with advanced packaging platforms playing a key role in competitive differentiation.
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Worldwide capacity: expansion efforts will align with actual demand. Generative AI[4] is not significantly increasing wafer consumption, and the next challenge will stem from supply-demand imbalances.
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Semiconductor ecosystem: in 2024, the 35 largest semiconductor companies accounted for 80% of the market.
At over $670 billion in 2024, Yole Group’s analysts report a $100 billion year-over-year increase from 2023. And this is just the beginning—strong growth is expected in the coming years, fueled by the generative AI boom.
“A new growth cycle is expected to continue over the next three to four years, driven by demand in servers, automotive, computing, and industrial market segments. These factors will propel the semiconductor devices industry toward a $1 trillion market by 2030.”
Pierre Cambou
Principal Analyst, Yole Group
In the latest market & technology report, Overview of the Semiconductor Devices Industry H1 2025, Yole Group analyzes each semiconductor segment and highlights significant growth rates exceeding 10% for servers and automotive applications. Servers, in particular, are set for robust growth, and the market will be worth $390 billion by 2030. While the automotive sector boasts a higher growth rate than the server market, its total value will reach $112 billion.
Yole Group’s analysts also emphasize the computing market’s active role over the next five years, with a 6% growth rate expected to push it to $150 billion by 2030.
From a component standpoint, DRAM, NAND, and processors will drive the semiconductor devices industry, maintaining a steady growth rate of 7 to 8% through 2030. Yole Group conducts daily analyses of semiconductor innovations through a specialized suite of products. With Teardown Tracks and Reverse Engineering & Costing Reports, the group examines the manufacturing processes, technical decisions, and strategies of the leading semiconductor companies. Through these insights, Yole Group provides a comprehensive view of the semiconductor devices industry, now presented in its latest report: Overview of the Semiconductor Devices Industry H1 2025.
Behind those impressive market figures, giants are playing in the playground. “The 35 largest semiconductor companies represented 80% of the industry in 2024,” asserts Pierre Cambou from Yole Group. “Famous names are there redefining the industry. “
NVIDIA, a fabless semiconductor company, now leads the industry with $96 billion in semiconductor device revenue in 2024. Following closely is TSMC, a Taiwanese open foundry, with $87 billion in wafer foundry revenue for the same year. Samsung, based in South Korea and primarily an IDM[5], secures the third position with $83 billion in revenue in 2024. Intel, also an IDM, ranks fourth with $52 billion in revenue in 2024. Together, these four largest companies account for nearly a third of the entire semiconductor industry, encompassing all business models.
The other semiconductor companies, part of the top 35, have revenues ranging 20-fold, from roughly $5 billion to $100 billion. About 40% of these are not semiconductor device companies but open foundries, OSAT[6} companies, equipment companies, or materials companies.
Acronyms
(1) HBM: High Bandwidth Memory
(2) Semiconductor devices industry
(3) CAGR: Compound Annual Growth Rate
(4) AI: Artificial Intelligence
(5) IDM: Integrated Devices Manufacturer
(6) OSAT: Outsourced Assembly and Test
Yole Group is a leading market research and strategic consulting firm specializing in the semiconductor industry. Through their in-depth investigations, analysts provide valuable insights into market trends, emerging technologies, and competitive dynamics. Their expertise helps businesses navigate the rapidly evolving semiconductor landscape, driving innovation and strategic decision-making. With a strong focus on semiconductor manufacturing and equipment, advanced packaging, memory, computing, power electronics, and more, Yole Group continues to be a trusted third party in the industry.
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