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Military & Defense Semiconductor Market Trends

Report ID: GMI7646
Published Date: Dec 2023
Report Format: PDF

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Military & Defense Semiconductor Market Trends

Increased demand for AI and edge computing in the military necessitates better processing chips. Owing to the growing use of IoT and linked devices in military systems, semiconductors are required for secure communication and data processing. The emphasis on cybersecurity solutions highlights the need for sophisticated semiconductor technologies to protect sensitive military data and communications. This reflects the dynamic context in which technology plays a critical role in boosting military capabilities, connectivity, and security.

The increased knowledge of vulnerabilities in military semiconductor manufacturing highlights the importance of supply chain resilience. For vital defense applications, there is a trend toward enhancing resilience and expanding domestic manufacturing capacities. Research and development on quantum computing for military use can have an impact on future semiconductor needs. To assure worldwide compatibility and cooperation in defense technologies, ongoing international collaborations and standards development strive to improve interoperability among military systems, impacting semiconductor design and manufacturing issues.

Authors: Suraj Gujar , Sandeep Ugale

Frequently Asked Questions (FAQ) :

Market size for military & defense Semiconductor crossed USD 25 billion in 2023 and is expected to register over 8% CAGR from 2024-2032 due to the escalating government investments in the military sector worldwide.

The communications application segment held over 25% share of the military & defense Semiconductor industry in 2023 owing to the increasing adoption of sophisticated communication systems that require high-performance semiconductors.

North America held over 35% share of the military & defense semiconductor industry in 2023 and is expected to register commendable CAGR from 2024-2032 due to the increased defense spending, improved technology, and emphasis on modernization in the region.

Advanced Micro Devices Inc. (AMD), Infineon Technologies AG, Microchip Technology Inc., NXP Semiconductors NV, ON Semiconductor Corporation, and Texas Instruments Incorporated are some of the major semiconductor in military & defense companies worldwide.