Computer Microchips Market - By Chip Type (Logic Chips, Memory Chips, ASICs, SoCs), By Architecture (x86, ARM, RISC-V), By Application, By End-use (Personal Computers, Servers and Data Centers, Smartphones and Tablets, Gaming Consoles) & Forecast, 2024 - 2032

Computer Microchips Market Size

Computer Microchips Market was valued at USD 24.97 billion in 2023, and it is anticipated to register a CAGR of over 10.7% between 2024 and 2032. The surge in consumer electronics demand is a primary driver of the market.
 

With advancements in technology, consumer electronics such as smartphones, tablets, and laptops are becoming more sophisticated and integrated with advanced features. This has created a consistent need for high-performance microchips that can handle complex tasks efficiently. The global shift towards smart homes and wearable devices further accelerates this demand. For instance, according to data published by IDC in July 2024, global smartphone shipments increased 6.5% year over year to 285.4 million units in the second quarter of 2024 (2Q24). This marks the fourth consecutive quarter of shipment growth.
 

Governments are investing heavily in semiconductor manufacturing facilities, research and development, and infrastructure to bolster domestic production capabilities. These initiatives often include financial incentives such as subsidies, tax breaks, and grants to encourage both new investments and the expansion of existing facilities. By providing such support, governments aim to address supply chain vulnerabilities and ensure a stable supply of critical components.
 

Governments also play a key role in funding research and development efforts in semiconductor technology. Public funding for R&D helps drive advancements in chip design, materials science, and manufacturing processes. For instance, in February 2024, The Biden administration has announced a significant commitment of USD 5 billion aimed at enhancing research and development in the semiconductor industry through the establishment of the National Semiconductor Technology Center (NSTC). This initiative is part of the broader CHIPS and Science Act, which was enacted to revitalize the U.S. semiconductor sector
 

Supply chain disruptions have been a significant challenge for the microchip market, particularly evident during global crises such as the COVID-19 pandemic. The semiconductor industry is highly complex, involving multiple stages from raw material sourcing to manufacturing, assembly, and distribution. Any disruption at any stage can lead to delays and shortages. For instance, the pandemic caused factory shutdowns, labor shortages, and logistical bottlenecks, severely impacting production capabilities and leading to a global chip shortage. This shortage affected various industries, from automotive to consumer electronics, highlighting the vulnerability of the microchip supply chain. Addressing these disruptions requires improving supply chain resilience, diversifying sources, and investing in local manufacturing capabilities.
 

Computer Microchips Market Trends

The transition to 5G technology is profoundly impacting the computer microchips industry. 5G networks offer faster speeds, lower latency, and the ability to connect a vast number of devices simultaneously. This shift necessitates advanced microchips capable of handling higher data rates and processing demands. Microchips designed for 5G applications need enhanced connectivity features and improved power efficiency to meet the new requirements. As telecom companies and device manufacturers invest in 5G infrastructure, the demand for specialized microchips is increasing. For instance, in May 2024, The Ghanaian government, in partnership with Radisys Corporation (a subsidiary of Reliance Industries Limited), plans to launch affordable nationwide 5G mobile broadband services in Ghana by the end of 2024. The company plans to invest USD 145 million in Ghana's infrastructure over the next three years.
 

Partnerships and collaborations have become a prominent trend in the computer microchips market, significantly shaping its growth and innovation landscape. This trend is driven by the increasing complexity of semiconductor technology and the need for diverse expertise to tackle emerging challenges. Companies across the semiconductor industry are forming strategic alliances to leverage each other’s strengths and accelerate technological progress. For instance, in March 2024, EnCharge AI announced a partnership with Princeton University, supported by the U.S. Defense Advanced Research Projects Agency (DARPA), to develop advanced chips aimed at accelerating artificial intelligence (AI) applications. This initiative is part of DARPA's $78 million Optimum Processing Technology Inside Memory Arrays (OPTIMA) program, which seeks to create faster, more power-efficient, and scalable compute-in-memory accelerators for both commercial and defense applications.
 

Computer Microchips Market Analysis

Based on chip type, the market is segmented into logic chips, memory chips, ASICs, SoCs. In 2023, the logic chips segment accounted for the largest market share over 39% of the revenue.
 

• Logic chips, a key segment in the computer microchips industry, are pivotal for processing and controlling data within computing systems. These chips, which include microprocessors and field-programmable gate arrays (FPGAs), drive the functionality of everything from personal computers to servers. As computing demands increase, driven by applications in AI, big data, and high-performance computing, the need for advanced logic chips is growing. Innovations in chip architecture and manufacturing are essential to meet these demands and enhance processing power and efficiency.
   
• The expansion of cloud computing and data centers further fuels the demand for high-performance logic chips. As these centers handle vast amounts of data and require rapid processing capabilities, the need for more robust and energy-efficient logic chips becomes critical. Continued advancements in semiconductor technology are essential to support this growth, enabling improved speed, reduced power consumption, and greater overall performance. This drive for innovation is shaping the future of the market, highlighting the increasing importance of logic chips in modern computing infrastructure.

Based on architecture, the computer microchips market is divided into x86, ARM, RISC-V, and others. The RISC-V was the fastest growing segment during the forecasted period, growing at a CAGR of over 13%.
 

• RISC-V, an open-source instruction set architecture (ISA), is gaining traction in the computer microchip market due to its flexibility and cost-effectiveness. Unlike proprietary architectures, RISC-V allows designers to customize and extend the ISA, leading to tailored solutions for diverse applications. This adaptability is driving its adoption in areas such as embedded systems, IoT devices, and high-performance computing.
   
• The rise of RISC-V is also fueled by its potential for innovation and collaboration within the semiconductor industry. Its open nature encourages a broad range of contributions, accelerating the development of advanced microchips while reducing licensing costs. As more companies embrace RISC-V, its impact on the microchip market continues to grow, offering a competitive edge in performance and versatility.

In 2023, the Asia Pacific market held the largest share of over 50%, and it is predicted that it will hold its dominant position throughout the forecast period. The Asia-Pacific region dominates the computer microchips market due to a combination of strategic factors. Firstly, Asia-Pacific is home to major semiconductor manufacturing hubs, such as Taiwan, South Korea, and China, which collectively produce a significant share of the world's microchips. The presence of leading semiconductor companies, coupled with advanced manufacturing technologies and extensive supply chains, has positioned the region as a global leader in chip production.
 

Additionally, Asia-Pacific benefits from lower production costs and a well-established ecosystem that includes raw material suppliers, component manufacturers, and assembly services. The region's rapid adoption of technology and growing demand for electronics, including smartphones, consumer devices, and automotive applications, further drive the need for microchips. Government initiatives and investments in technology infrastructure and R&D also support the growth of the semiconductor industry in Asia-Pacific.
 

China is a major player in the global computer microchips market, largely due to its significant investments in semiconductor technology and manufacturing infrastructure. The Chinese government has prioritized the development of its domestic semiconductor industry as part of its broader strategy to achieve technological self-sufficiency and reduce reliance on imports. This is evident from initiatives such as the "Made in China 2025" plan, which emphasizes advancing the semiconductor sector through substantial funding, policy support, and the establishment of state-of-the-art fabrication facilities. China's large domestic market, coupled with its rapid growth in technology and consumer electronics, further drives the demand for microchips, positioning it as a critical hub in the global semiconductor landscape.
 

The United States plays a pivotal role in the computer microchips market, thanks to its leadership in semiconductor design, innovation, and research and development. U.S. companies, such as Intel, NVIDIA, and AMD, are renowned for their cutting-edge microchip technologies and have a significant influence on global trends. The U.S. government has also recognized the strategic importance of maintaining leadership in semiconductor technology, as demonstrated by recent legislative efforts like the CHIPS Act, which aims to boost domestic production and R&D capabilities. Additionally, the U.S. benefits from a robust ecosystem of technology firms, academic institutions, and industry partnerships that drive continuous innovation and maintain its competitive edge in the global market.
 

Japan has a longstanding tradition of excellence in semiconductor technology and remains a key player in the global microchips market. Japanese companies, such as Toshiba and Renesas, are known for their high-quality microchips and innovations in areas like memory and automotive electronics. Japan's strong emphasis on research and development, combined with its advanced manufacturing capabilities, contributes to its prominence in the industry. The Japanese government also supports the semiconductor sector through strategic initiatives and investments aimed at fostering technological advancements and enhancing the country's global competitiveness. Japan's focus on precision and quality in semiconductor production reinforces its important role in the global market.
 

Germany is a significant contributor to the global market, particularly in the realm of high-precision and automotive semiconductor technologies. German companies, like Infineon Technologies and Siemens, are recognized for their expertise in developing advanced microchips for various applications, including automotive systems, industrial automation, and consumer electronics. Germany's strong engineering capabilities, coupled with its focus on innovation and quality, make it a key player in the global semiconductor industry. The German government also supports the sector through initiatives aimed at boosting R&D and fostering collaboration between industry and academia, further solidifying its position in the global market.
 

South Korea is a major force in the computer microchips industry, driven by its leading semiconductor companies and technological advancements. Samsung Electronics and SK Hynix, two of the world's largest memory chip producers, are based in South Korea and play a crucial role in global chip supply. The country's emphasis on innovation and investment in cutting-edge semiconductor technology has positioned it at the forefront of the industry. South Korea's strong government support for the semiconductor sector, including funding for research and development and the establishment of advanced manufacturing facilities, reinforces its dominance in the global market. The country's strategic focus on enhancing its semiconductor capabilities continues to drive growth and maintain its competitive position internationally.
 

Computer Microchips Market Share

Intel Corporation and Advanced Micro Devices, Inc. (AMD) are leading competitors in the CPU and GPU segments, continually pushing the boundaries of performance and efficiency. NVIDIA Corporation is renowned for its high-performance graphics processing units (GPUs), catering to gaming, AI, and data center markets. Qualcomm Incorporated excels in mobile and communication technologies, with its Snapdragon processors dominating the smartphone industry.
 

On the manufacturing front, Taiwan Semiconductor Manufacturing Company (TSMC) stands out as a global leader in semiconductor foundry services, providing cutting-edge fabrication technologies to a range of clients. Broadcom Inc. specializes in networking and broadband semiconductors, while Samsung Electronics Co., Ltd. remains a dominant force in memory chips and integrated circuits. These companies' competitive strategies include substantial investments in R&D, advanced manufacturing capabilities, and strategic partnerships, ensuring their continued leadership and influence in the rapidly evolving semiconductor market.
 

Computer Microchips Market Companies

Major players operating in the computer microchips industry are:

• Intel Corporation
• NVIDIA Corporation
• Advanced Micro Devices, Inc. (AMD)
• Qualcomm Incorporated
• Taiwan Semiconductor Manufacturing Company (TSMC)
• Broadcom Inc.
• Samsung Electronics Co., Ltd.
   

Computer Microchips Industry News

• In December 2023, Adidas is introducing a microchip in the Euro 2024 football to assist referees. This shows the expanding application of microchip technology beyond traditional electronics.
   
• In December 2023, MediaTek unveiled its latest chipsets, the Dimensity 9300 and Dimensity 8300, which are designed to enhance connectivity and integrate advanced generative AI capabilities.
   

The computer microchips market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million & Units) from 2021 to 2032, 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
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA