Computer Microchips Market Size – By Chip Type, By Architecture, By Application, By End use – Global Forecast, 2025 – 2034

Computer Microchips Market Size

The global computer microchips market size was valued at USD 27.7 billion in 2024 and is estimated to grow at 10.7% CAGR from 2025 to 2034. The growth of the market is attributed to the growing adoption of AI and machine learning, and the expansion of cloud computing and data centers.  
 

The expansion of cloud computing and data centers is one of the major drivers for the computer microchips market. With the increasing adoption of cloud services among businesses and consumers, there is a growing requirement for high-performance, low-power, and scalable computer microchips. According to European Commission, 45.2% of EU enterprises purchased cloud computing services in 2023, increase of 4.2% as compared to 2021. The highest shares of enterprises that purchased various computing services were registered in Finland (78.3%), Sweden (71.6%), Denmark (69.5%) and Malta (66.7%). The shift toward digital transformation, artificial intelligence workloads, and data-intensive applications is driving the demand for sophisticated microprocessors, memory chips, and networking components capable of supporting large-scale data processing needs.
 

The expansion of data center infrastructure worldwide is one of the main drivers of growth in the computer microchip industry. With cloud storage, SaaS applications, and remote working solutions gaining popularity, microchips that power servers, storage devices, and networking devices are in demand. Firms are investing in more efficient and scalable microchips to lower power consumption, heat generation, and operational expenses in large-scale data centers.
 

Computer microchip manufacturers must focus on developing high-performance, low-power computer chips that are specifically designed for AI, cloud computing, and data centers. Increasing scalability and processing capacity at lower power consumption will enable companies to meet rising demand fueled by digital transformation, remote work, and AI applications.
 

The growing use of artificial intelligence (AI), machine learning (ML), and high-performance computing (HPC) is driving demand for advanced computer microchips with higher processing speeds and reduced power consumption. AI workloads need specially designed processors, such as those tailored for deep learning, neural network processing, and big data analysis. The growing demand for faster and more efficient computing architecture is driving the evolution of next-generation computer microchips.
 

Computer microchip manufacturers need to develop AI-optimized chips with higher processing power and energy efficiency to enable deep learning, neural networks, and big data analytics. 
 

Computer Microchips Market Trends

• One of the key trend in the market is manufacturing of energy-efficient computer microchips because of the demand for sustainability and the growing need for high-performance, low-power devices. With rising power consumption in data centers and high-performance computing, the market is witnessing a trend towards energy-efficient microchips with more performance per watt.
   
• Companies and researchers are investing heavily in developing computer chips for reducing energy footprint of artificial intelligence. For example, in June 2024, An Oregon State University College of Engineering researcher developed new artificial intelligence chip which can improve energy efficiency six times as compared to traditional chips.
   
• The growing adoption of the Internet of Things (IoT) is a major trend propelling computer microchip market growth, as connected devices need effective processing and real-time decision-making capabilities. Edge computing applications such as smart homes, industrial automation, and autonomous systems, are driving demand for low power but high-performance computer microchips that facilitate decentralized data processing and communication.
   

Computer Microchips Market Analysis

Based on chip type, the market classification includes logic chips, memory chips, ASICs, and SoCs. The logic chips segment is expected to grow significantly with innovation in semiconductor manufacturing and growth of emerging technologies like 5G and IoT.
 

• The logic chips market is anticipated to surpass USD 31.5 billion by 2034. The growth of smartphones, tablets, laptops, and gaming consoles is a key growth driver for the logic chips market. Sophisticated system-on-chip (SoC) architectures, where several processing functions are combined in one chip, are improving the performance of mobile and wearable devices.
   
• Memory chips segment accounted for USD 6.4 billion in 2024. The emergence of artificial intelligence (AI), deep learning, and big data analytics necessitates high-bandwidth, high-speed memory chips to enable intensive computational workloads. AI accelerators, GPUs, and enhanced data processing units (DPUs) depend on next-generation DRAM and HBM (High Bandwidth Memory) to deliver performance and lower latency.
   
• ASIC segment accounted for USD 4.3 billion in 2024. Data centers are shifting towards custom ASIC chips in order to improve computational efficiency without increasing power usage and operational expenses. Cloud service providers utilize ASIC-based hardware accelerators for AI inference, big data processing, and storage optimization, creating further demand for such specialized chips.
   
• SoC segment is predicted to reach USD 17.6 billion by 2034. The System-on-Chip (SoC) market is set to experience huge growth in the computer chips market because it has the capability of combining several computing functions into a single chip, enhancing performance, power consumption, and space use. SoCs are being utilized in many different industries, such as consumer electronics, automotive, AI, IoT, and telecom, fueling their adoption and growth.
   

Computer microchips market segmentation by architecture consists of x86, ARM, RISC-V, and others. The RISC-V was the fastest growing segment due to open-source nature, flexibility, and cost-effectiveness.
 

• The RISC-V segment held a market share of over 13.2% in 2024. One of the principal drivers for the growth of RISC-V is that it is open-source, enabling companies to create their own custom chip designs without royalties or licensing charges. This provides cost savings for startups, semiconductor companies, and research labs that wish to create application-specific chips while also preventing vendor lock-in.
   
• x86 architecture accounted for 47.3% market share in 2024. The x86 segment remains dominating in the market for computer chips, driven by its large-scale usage across PCs, data centers, enterprise computing, and high-performance usage. The x86 segment grows due to the improvements in computing power, compatibility, and integration of AI-powered capabilities within x86-based processors.
   
• Major players in the market are developing x86 architecture chips to maintain strong presence in data centres, gaming PCs, and enterprise applications. In October 2024, Intel and AMD announced to establish x86 Ecosystem Advisory Group to solicit technical input from x86 hardware and software users to create consistent architectural feature.
   
• ARM architecture accounted for 30.8% market share in 2024.  The ARM architecture is a type of reduced instruction set computing (RISC) design that focuses on efficiency, low power consumption, and scalability. Companies like Apple, Qualcomm and NVIDIA are using this architecture for their laptops, AI computing, and cloud data centres.
   

Based on application, the computer microchips market is bifurcated into data processing, graphics rendering, artificial intelligence and machine learning, networking and connectivity, sensor integration, encryption and security, and others.
 

• Data processing segment is estimated to grow at a CAGR of 9.6% by 2034. The data processing segment is witnessing strong growth in the computer microchips industry with the fast growth of big data, AI-based analytics, cloud computing, and high-performance computing (HPC). As the demand for faster, more efficient, and scalable processing is on the rise, the demand for sophisticated microchips designed to manage huge datasets and computational loads is increasing.
   
• Graphics rendering segment is anticipated to reach USD 11.9 billion by 2034. The growing gaming market is one of the primary drivers of demand for high-performance GPUs and graphics-focused microchips. GPUs are a necessity for gaming, content creation and working in virtual or augmented reality (VR/AR). The growing use of new generation 4K/8K graphics cards capable of ray tracing and other immersive graphics techniques is increasing the need for high-performing graphics chips.
   
• Artificial intelligence and machine learning segment accounted for 12.7% market share in 2024. The Artificial Intelligence (AI) and Machine Learning (ML) segment is expected to witness considerable growth in the market for computer chips with the growth in the adoption of AI-powered applications, surging computational requirements, and improving AI chip architectures. With the integration of AI-based solutions by industries, demand for energy-efficient, high-performance, and AI-optimized microchips is growing.
   
• Networking and connectivity segment is projected to reach USD 9.1 billion by 2034. The emergence of 5G, Wi-Fi 7, and cloud systems have raised the demand for more efficient networking chips. In October 2024, Qualcomm introduced Networking Pro A7 Elite chip. It is the new chipset for routers and related devices. It also supports new Wi-Fi 7 standard and allows four times the bandwidth of its predecessor. Such initiatives are contributing to the growth of computer microchip market.
   
• The sensor integration industry is set to reach USD 5 billion by 2034 due to the growing adoption of IoT, smart devices, and autonomous systems. Such sensors are critical for capturing real-time data ranging from biometric authentication in mobile phones to environmental sensors in industrial automation.
   
• Encryption and security segment is projected to reach USD 5.6 billion by 2034. Demand for hardware-based encryption and security chips has intensified due to the risks of cybersecurity and the increasing regulations pertaining to data privacy. Increasing threats related to ransomware, AI powered cyber-attacks, and data breach are driving the need for specialized security processors that can provide trusted computing as well as safe data storage.
   

Based on end-use, the computer microchips market is bifurcated into personal computers, servers and data centres, smartphones and tablets, gaming consoles, and others.
 

• Personal computers segment is forecasted to reach USD 14.3 billion by 2034. The increasing need for remote work, online learning, and digital content production is the reason for the growing demand of personal computers. According to a Statista report, in 2024, approximately 245.36 million PCs were shipped around the world. The introduction of laptops using ARM processors and AI embedded PCs is also influencing the structure of the PC market.
   
• Servers and data centres segment is anticipated to grow at a CAGR of 12.4% during the forecast period. The robust expansion of data centers, cloud computing, and artificial intelligence has significantly increased the demand for advanced performance chips. Hyperscale data centers which support huge computing resources need specially designed, high-efficiency microchips to maximize workloads and reduce power consumption.
   
• Smartphones and tablets accounted for 31.2% market share in 2024. The smartphones and tablets segment of the computer microchips is expanding because of the growing need by consumers for faster mobile devices with sophisticated processing capabilities. The use of 5G, AI powered applications, and high-definition screens are increasing the demand for powerful and energy efficient microchips.
   
• Gaming consoles accounted for 9.9% market share in 2024. The growth of virtual reality (VR) and augmented reality (AR) gaming is creating demand for high-performance microchips with the capability of real-time rendering, spatial processing, and artificial intelligence-driven interaction. Gaming consoles are incorporating AI and motion-processing dedicated chips in order to offer immersive gaming experience.
   

The North America computer microchips market is forecasted to reach USD 19 billion by 2034.Top of Form The region is witnessing a significant growth in the market because of the high spending on R&D, the robust ecosystem of semiconductor supply chains, and the demands from AI, cloud computing, and self-driving cars.
 

• The U.S. computer microchips market is predicted to reach USD 16.7 billion by 2034. The US semiconductor market is growing significantly due to the CHIPS Act which grants billions of dollars as subsidies for domestic semiconductor fabrication. With this, major companies such as Intel, TSMC, and Samsung are building new fabs to decrease dependence on Asian Supply Chains. In April 2024, The U.S. government under the CHIPS and Science Act, granted more than USD 6 billion each to Taiwan Semiconductor Manufacturing Company, Samsung, and Micron.
   
• Computer microchips market in Canda is predicted to grow at a 10.1% CAGR by 2034. In Canada, the semiconductor market is expanding because of the government’s sustained support towards innovation in the AI, quantum computing, and photonics research and development.
   

The Europe computer microchips market is anticipated to reach USD 12.8 billion by 2034. The growing adoption of cloud computing, AI applications, and hyperscale data centers, are boosting the need for high-performance microchips in Europe that drive data processing, AI accelerators, and edge computing systems.  
 

• The computer microchips market in Germany is anticipated to reach USD 4 billion by 2034. Germany’s semiconductor market is supported by its automobile industry, particularly in the automotive chip segment. Germany is one of the leader in the production of electric vehicles (EVs), autonomous driving technology, and smart mobility solutions. This transition is fueling demand for automotive microchips, such as AI-driven SoCs, advanced driver-assistance system (ADAS) processors, and power management chips for EVs. Intel and TSMC are setting up new fabs in Germany, which is likely to strengthen their position in the European semiconductor supply chain.
   
• In September 2024, TSMC established its first European facility, the USD 11 billion Dresden, Germany fabrication plant. The German government subsidized the project by providing funds that accounted for about half of the total cost and supported Germany's role in Europe's semiconductor value chain. .
   
• The UK computer microchips market is anticipated to expand with a CAGR of 10.8% by 2034. The government of the UK is implementing a semiconductor strategy to build domestic supply chain and offer support to the industry, fueling market expansion. In May 2024, UK government declared establishment of the UK Semiconductor Institute, to complement its USD 1.6 Bn chip plan. This plan will lower dependence on international chip suppliers and make the UK a major player in microchip development.  
   
• Computer chips market in France is expected to grow at 10.5% CAGR by 2034. The increased demand from for specialized chips and the government is supporting locally conducted semiconductor research, design, and manufacturing in France.  
   
• Computer microchips market in Italy accounted for 12% of the global market share in 2024. Italy is increasing its investments in semiconductor research and development to create cutting-edge chip technology. In April 2024, Italian government announced investment of more than USD 10 billion in the semiconductor sector over the course of the year.
   
• The Spain computer microchips market is anticipated to expand with a CAGR of 9.4% by 2034. The market in Spain is growing owing to the PERTE Chip project, which aims to boost the domestic manufacturing and R&D capabilities of the country.
   

The Asia Pacific computer microchips market is anticipated to reach USD 39.7 billion by 2034. The region holds the largest share in the global microchip market because of the presence of high-volume manufacturing, a well-integrated supply chain, and an active market in consumer electronics and industries.
 

• The computer microchips market in China is predicted to reach USD 16.6 billion by 2034. China’s computer microchip market has been growing significantly as a result of government investment on domestic semiconductor manufacturing. In December 2024, China introduced 504-qubit chip named “Xiaohong”, developed in collaboration with Chinese Academy of Sciences and QuantumCTek.
   
• Computer microchips market in Japan held 19.8% market share in 2024. Japan's 5G rollout and industrial IoT (IIoT) implementation are fueling demand for low-power, high-performance processors utilized in real-time edge computing, smart factories, and connected infrastructure. Japanese semiconductor companies are creating custom AI and IoT chips to address such requirements.
   
• The India computer microchips market is anticipated to expand with a CAGR of 14.3% by 2034. India is one of the fastest-expanding smartphone, laptop, tablet, and consumer electronics markets, all of which demand high-performance microchips. Domestic electronic manufacturing is being encouraged by the Production Linked Incentive (PLI) program, leading to rising demand for locally manufactured semiconductor components.
   
• The computer microchips market in Australia is predicted to reach USD 1.7 billion by 2034. In Australia, microchip demand is growing, alongside AI, defence, and quantum computing advancements. The expanding telecommunication and renewable energy sectors also drives the demand.
   
• Computer microchips market in South Korea accounted for 14.9% of the global market share in 2024. The memory chip business of South Korea is aided by government support for semiconductor R&D. In May 2024, South Korea announced USD 19 billion support package for its semiconductor businesses.
   

Latin America computer microchips market is forecasted to grow at a CAGR of 8.6% by 2034. Latin America is witnessing growth in microchips owing to digital transformation, expanding data centres, and increasing electronics consumption.
 

• The computer microchips market in Brazil is predicted to reach USD 1.1 billion by 2034. The semiconductor market in Brazil is developing as a result of growing automotive, telecommunications, and industrial markets.
   
• Computer microchips market in Mexico accounted for 33.4% of the global market share in 2024. Increased adoption of AI and IoT technologies drives consumption of chips in the region. Government incentives and investment in semiconductor manufacturing also fuels the market growth.
   

MEA computer microchips market is forecasted to grow at a CAGR of 7.4% by 2034. The region's computer microchip industry is growing because of the increasing need for AI-powered applications, smart city projects, and investments in cloud computing technology.
 

• The computer microchips market in South Africa is predicted to reach USD 418.8 million by 2034. Increased focus on telecommunication, industrial automation and defence are propelling growth in South Africa’s computer microchip market.
   
• Computer microchips market in UAE accounted for 27.3% of the global market share in 2024.  The increasing need for sophisticated microchips in the defence, telecoms, and consumer electronics industries are propelling the growth of the market. Global Chip Makers Samsung Electronics and Taiwan Semiconductor Manufacturing Company (TSMC) are considering establishing plants worth more than $100 billion.
   
• The computer microchips market in Saudi Arabia is predicted to reach USD 788.7 million by 2034.  Vision 2030 has resulted in investments in AI, IoT, and smart infrastructure which has helped the country’s microchips business to procure growth in Saudi Arabia.
   

Computer Microchips Market Share

NVIDIA Corporation and Intel Corporation collectively held 25% share of the total market.  Global leading corporations in the computer microchips industry like NVIDIA, Intel Corporation and Broadcom are employing several key strategies to enhance their market domination. Expansion by means of advanced technology remains an important focus through investment in AI, 5G, as well as advanced semiconductor nodes like 3nm and 2nm.
 

Mergers, acquisitions, and partnerships are some of the well-known strategies adopted by industry players to remain competitive in the market. Industry leaders are forming strategic partnerships in order to provide innovative solutions for various industries. Businesses are massively spending on R&D in order to achieve or sustain the performance and efficiency benchmarks. These businesses also adopt vertical integration to dominate critical areas of chip design and manufacturing. This enables cost reductions, operational efficiency, and improved control over quality and supply.
 

NVIDIA Corporation is a leading company in the computer microchip industry, particularly in artificial intelligence (AI) and high-performance computing. Its graphics processing units (GPUs) find extensive use in healthcare, finance, and autonomous vehicles. NVIDIA's focus on high-power AI chips and its CUDA programming language positions it at the top.
 

Broadcom Inc.  has well-positioned itself in the market. The company focuses on artificial intelligence (AI) and custom chip development. Broadcom Inc. is developing partnerships with major technology firms to stay ahead in the competition. The company’s strategic focus is on developing custom AI processors and networking solutions.  
 

Computer Microchips Market Companies

Some of the prominent market participants operating in the computer microchips industry include:

• Advanced Micro Devices
• Analog Devices
• Arm Holdings
• Broadcom
• Espressif Systems
• Infineon Technologies
• Intel
• Kioxia Holdings
• Marvell Technology Group
• Microchip Technology
• Micron Technology
• NVIDIA
• NXP Semiconductors
• Qualcomm
• Renesas Electronics
• Samsung Electronics
• STMicroelectronics
• Taiwan Semiconductor Manufacturing Company
• Texas Instruments
   

Computer Microchips Industry News

• In June 2024, MediaTek announced that it is developing an Arm-based personal computer chip that will run Microsoft's Windows operating system. Microsoft last month introduced a new generation of laptops that have chips built using Arm Holdings technology which offer sufficient horsepower to support the artificial intelligence programs.
   
• In May 2024, Nano Labs Ltd, a fabless integrated circuit design company and product solution provider in China, launched Cuckoo3.0 chip. With single-core processing capability of 1.2GH/s, Cuckoo3.0 has around four times the functional performance of Cuckoo2.0. Furthermore, its single-core power consumption has been significantly reduced to 0.14W/MHash, which is an 83% boost in energy efficiency.
   
• In November 2023, Sapeon launched the Sapeon X330 AI chip for data centres. It offers twice the computational performance and 1.3x better power efficiency than other market players.  It is a type of application-specific integrated circuit (ASIC) optimized for processing artificial intelligence workloads, particularly large language models (LLMs) like ChatGPT.
   

The computer microchips market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Million from 2021 – 2034 for the following segments:

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Market, By Chip Type

• Logic chips
• Memory chips
• ASICs
• SoCs

Market, By Architecture

• x86
• ARM
• RISC-V
• Others

Market, By Application

• Data processing
• Graphics rendering
• Artificial intelligence and machine learning
• Networking and connectivity
• Sensor integration
• Encryption and Security
• Others

Market, By End-use

• Personal computers
• Servers and data centers
• Smartphones and tablets
• Gaming consoles
• Others

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada
• Europe 
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America 
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa 
  • Saudi Arabia
  • South Africa
  • UAE