Computer Microchips

Global Computer Microchips Market to Reach US$47.7 Billion by 2030

The global market for Computer Microchips estimated at US$26.4 Billion in the year 2024, is expected to reach US$47.7 Billion by 2030, growing at a CAGR of 10.4% over the analysis period 2024-2030. Logic Chips, one of the segments analyzed in the report, is expected to record a 11.7% CAGR and reach US$23.7 Billion by the end of the analysis period. Growth in the Memory Chips segment is estimated at 10.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$7.2 Billion While China is Forecast to Grow at 14.3% CAGR

The Computer Microchips market in the U.S. is estimated at US$7.2 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$9.9 Billion by the year 2030 trailing a CAGR of 14.3% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 7.3% and 9.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 8.2% CAGR.

Global Computer Microchips Market – Key Trends & Drivers Summarized

Why Is the Demand for Computer Microchips Surging Across Industries?

The demand for computer microchips has been rising exponentially due to their integral role in powering modern computing, artificial intelligence, the Internet of Things (IoT), and advanced consumer electronics. As digital transformation accelerates globally, industries such as telecommunications, healthcare, automotive, and manufacturing are increasingly reliant on microchips for efficient processing and automation. The expansion of cloud computing, big data analytics, and next-generation wireless technologies like 5G has further propelled the need for high-performance microchips that enable seamless connectivity and data processing. The rapid adoption of electric vehicles (EVs) and autonomous driving technology has also significantly contributed to the growing need for microchips. Modern vehicles require complex semiconductor components for advanced driver assistance systems (ADAS), in-car infotainment, and battery management, making automotive-grade chips a crucial segment within the industry. Additionally, the ongoing semiconductor shortage, which disrupted global supply chains in recent years, has led to increased investments in chip manufacturing, further fueling market expansion. Consumer electronics, including smartphones, laptops, and gaming consoles, remain key drivers of the microchip market. With each new generation of devices, manufacturers are pushing for more efficient, faster, and compact chips that enhance computing power while reducing energy consumption. The shift towards smaller node sizes, such as 5nm and 3nm fabrication processes, has enabled chipmakers to develop more powerful processors, improving device performance and efficiency across multiple applications.

How Are Technological Advancements Transforming Microchip Development?

Innovations in semiconductor technology are revolutionizing microchip development, enabling higher efficiency, greater processing power, and improved energy savings. One of the most significant advancements in recent years has been the introduction of chiplet-based architectures, which replace traditional monolithic designs with modular components that can be integrated to improve scalability and customization. This approach has gained traction in high-performance computing and artificial intelligence applications, where the demand for optimized processing is increasing rapidly. The rise of quantum computing and neuromorphic engineering is also shaping the future of microchips. Quantum processors, although still in the early stages of development, have the potential to perform complex calculations exponentially faster than conventional chips. Meanwhile, neuromorphic chips, which mimic the structure of the human brain, are being designed to enhance artificial intelligence and machine learning applications by improving energy efficiency and real-time processing capabilities. Another critical breakthrough in microchip technology is the development of three-dimensional (3D) stacking, where multiple layers of integrated circuits are stacked to improve data transmission speeds and reduce power consumption. This innovation, coupled with the transition to extreme ultraviolet (EUV) lithography, is enabling the production of ultra-small transistors, ensuring continued progress in Moore’s Law despite previous concerns about physical limitations. These technological advancements are not only driving innovation but also intensifying competition among semiconductor manufacturers striving for market leadership.

What Market Trends Are Shaping the Future of the Microchip Industry?

One of the most significant trends in the computer microchip market is the growing localization of semiconductor manufacturing. Geopolitical tensions, trade restrictions, and concerns over supply chain resilience have prompted governments and companies to invest in domestic semiconductor production. The U.S. CHIPS and Science Act, the European Union’s semiconductor initiatives, and China’s push for self-sufficiency in chip manufacturing are all aimed at reducing dependency on foreign suppliers and securing national semiconductor capabilities. These initiatives are leading to a global expansion of fabrication plants, ensuring a more diversified and resilient supply chain. The increasing focus on sustainability is also influencing microchip production. Semiconductor manufacturing is energy-intensive, and chipmakers are now exploring eco-friendly production techniques that minimize water usage, reduce carbon emissions, and improve overall energy efficiency. Companies are adopting advanced cooling solutions and transitioning to more sustainable materials to address environmental concerns, aligning with global efforts to achieve carbon neutrality in the tech industry. Another emerging trend is the growing demand for specialized microchips tailored to specific applications, such as AI accelerators, edge computing processors, and secure cryptographic chips. Unlike traditional general-purpose processors, these specialized chips offer optimized performance for dedicated tasks, driving efficiency and innovation across industries. As AI, automation, and IoT applications continue to expand, the need for custom-designed semiconductors is expected to rise, fostering further market growth.

What Are the Key Growth Drivers Fueling the Market?

The growth in the computer microchips market is driven by several factors, including technological advancements, increasing demand for high-performance computing, and the expansion of semiconductor fabrication facilities. One of the primary growth drivers is the rising adoption of artificial intelligence and machine learning applications, which require powerful processing capabilities. AI-driven workloads, from data analytics to autonomous systems, are pushing the demand for more advanced microprocessors, GPUs, and AI-specific accelerators. The rapid expansion of 5G networks and next-generation wireless technologies is also fueling market growth. Telecommunication companies are investing heavily in network infrastructure that requires cutting-edge semiconductor components to support ultra-fast data transmission, low-latency communication, and seamless connectivity. The proliferation of smart devices and IoT-enabled systems is further increasing demand for microchips capable of handling real-time data processing efficiently. The global semiconductor industry`s investment in advanced manufacturing facilities is another major driver. Key players such as TSMC, Intel, and Samsung are ramping up production capacity, building state-of-the-art fabrication plants, and adopting next-generation lithography techniques to enhance chip performance. These expansions are helping address supply chain constraints while ensuring continuous innovation in semiconductor technology. Additionally, the automotive sector`s transformation toward electrification and autonomous mobility is accelerating the need for high-performance microchips. Modern vehicles are integrating more sophisticated electronic control units, requiring chips that enable real-time decision-making, safety enhancements, and power efficiency. As automakers push for self-driving technology and smart mobility solutions, the demand for automotive-grade semiconductors is expected to grow significantly.

With these factors collectively shaping the future of the computer microchips market, the industry is poised for sustained expansion, driven by rapid technological progress, increasing semiconductor investments, and the growing integration of advanced computing technologies across multiple sectors.

SCOPE OF STUDY:

The report analyzes the Computer Microchips market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Chip Type (Logic Chips, Memory Chips, ASICs, SoCs); Architecture Type (x86 Architecture, ARM Architecture, RISC-V Architecture, Other Architecture Types)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 36 Featured) -

• Advanced Micro Devices (AMD)
• Applied Materials
• ASML Holding
• Broadcom Inc.
• GlobalFoundries
• Infineon Technologies
• Intel Corporation
• KLA Corporation
• Microchip Technology
• Micron Technology
• NVIDIA Corporation
• NXP Semiconductors
• ON Semiconductor
• Qualcomm Incorporated
• Samsung Electronics
• SMIC (Semiconductor Manufacturing International Corporation)
• STMicroelectronics
• Taiwan Semiconductor Manufacturing Company (TSMC)
• Texas Instruments
• Tower Semiconductor

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

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APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

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INDIA
176 OTHER COUNTRIES.

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