Australia Semiconductor Market Report and Forecast 2025-2034

Australia Semiconductor Market Report and Forecast 2025-2034

Market Outlook

According to the report by Expert Market Research (EMR), the Australia semiconductor market size reached about AUD 2.76 billion in 2024. Aided by the focus on sustainability, digital transformation and the rising usage of consumer electronics, the market is expected to grow at a CAGR of 4.20% between 2024 and 2032, reaching almost AUD 4.16 billion by 2034.

The Australia semiconductor market growth is driven by technological advancements and an increasing demand for electronic devices across various industries. The rise of Internet of Things (IoT) devices, artificial intelligence (AI), 5G technology, and electric vehicles (EVs) has created a steady demand for advanced semiconductors. These technologies require faster, more efficient, and power-efficient components, placing pressure on semiconductor manufacturers to innovate and deliver solutions that meet these requirements. As the demand for connected devices rises, so does the need for semiconductors, which form the backbone of these technologies. The ongoing digitalisation of industries, ranging from healthcare and education to agriculture and retail, is further driving the need for semiconductors, positioning the Australian market for strong growth.

The increasing prevalence of AI and machine learning applications are boosting the Australia semiconductor market trends. AI systems rely on semiconductors for their computational power, and with advancements in AI, there is a growing demand for high-performance chips that can handle complex tasks. This has prompted both established players and new entrants to innovate, developing chips that can support AI applications, from data processing to autonomous systems. The government's focus on promoting AI technologies has only added to the momentum of the semiconductor market, with policies encouraging investment in tech innovations.

Telecommunications, particularly the rollout of 5G networks, is another major driver for the Australia semiconductor market expansion. The implementation of 5G requires an upgrade in infrastructure and equipment, including base stations, mobile handsets, and network components, all of which rely heavily on semiconductors. As Australia continues to expand its 5G capabilities, semiconductor companies are expected to play a pivotal role in supporting this transformation. The transition to 5G technology demands the development of chips that can handle higher speeds, greater bandwidth, and enhanced connectivity.

Australia’s automotive industry is a major contributor to the Australia semiconductor market development. The shift towards electric vehicles (EVs) is gaining momentum, with manufacturers increasingly incorporating semiconductor components into electric drivetrains, battery management systems, and advanced driver-assistance systems (ADAS). These semiconductors are crucial for the efficient operation of EVs, as they manage the flow of electricity in batteries, sensors, and motors. The growing adoption of EVs, coupled with innovations in autonomous driving technology, is expected to further accelerate the demand for semiconductors in the automotive industry. As more companies transition to producing EVs and adopting smart mobility solutions, the semiconductor market is expected to expand significantly in the coming years.

According to the Australia semiconductor market analysis, consumer electronics continue to be one of the largest markets for semiconductors, with smartphones, laptops, and smart home devices being some of the key drivers of demand. Australia has seen a rise in consumer spending on advanced electronics, with a growing preference for devices that offer greater connectivity, improved performance, and energy efficiency. As consumers demand more sophisticated technology, manufacturers are increasingly turning to semiconductors to meet these needs. From high-definition displays and faster processors to more energy-efficient components, the Australia semiconductor market is poised to expand as consumers continue to demand more advanced and high-performing electronic devices.

Sustainability is further playing an important role in the Australia semiconductor market forecast. With growing concerns about the environmental impact of electronic waste, there is a significant push towards developing eco-friendly semiconductor solutions. Manufacturers are exploring ways to reduce the energy consumption of semiconductors, improve recycling processes, and design components that contribute to the reduction of e-waste. Sustainability is becoming a competitive advantage, as consumers and businesses alike are increasingly considering the environmental impact of the products they use. As a result, Australian semiconductor companies are focusing on creating products that meet both performance and sustainability standards.

Looking ahead, the Australia semiconductor market will witness increased investment in local manufacturing and research initiatives, with the government providing support for the industry’s growth. Collaborative efforts between government bodies, industry leaders, and academic institutions are helping to drive innovation and improve Australia’s competitive position in the global semiconductor market. As the country continues to invest in infrastructure and R&D, Australia’s semiconductor sector is well-positioned to take advantage of emerging opportunities in industries such as telecommunications, automotive, and AI.

Market Segmentation

The market can be divided based on component, material used, end use, and region.

Market Breakup by Components

• Memory devices
• Logic devices
• Analog IC
• MPU
• Discrete power devices
• MCU
• Sensors
• Others

Market Breakup by Material Used

• Silicon Carbide
• Gallium Manganese Arsenide
• Copper Indium Gallium Selenide
• Molybdenum Disulfide
• Others

Market Breakup by End Use

• Automotive
• Industrial
• Data Centre
• Telecommunication
• Consumer Electronics
• Aerospace and Defense
• Healthcare
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia semiconductor market. Some of the major players explored in the report by Expert Market Research are as follows:

• The Silanna Group
• Intel Corporation
• Taiwan Semiconductor Co. Ltd.
• NVIDIA Corporation
• Others

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.