Semiconductor Fabless

Global Semiconductor Fabless Market to Reach US$7.2 Billion by 2030

The global market for Semiconductor Fabless estimated at US$4.2 Billion in the year 2024, is expected to reach US$7.2 Billion by 2030, growing at a CAGR of 9.3% over the analysis period 2024-2030. Microcontrollers, one of the segments analyzed in the report, is expected to record a 11.3% CAGR and reach US$2.5 Billion by the end of the analysis period. Growth in the Digital Signal Processors segment is estimated at 6.4% CAGR over the analysis period.

The U.S. Market is Estimated at US$1.1 Billion While China is Forecast to Grow at 8.8% CAGR

The Semiconductor Fabless market in the U.S. is estimated at US$1.1 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.1 Billion by the year 2030 trailing a CAGR of 8.8% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 8.7% and 7.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 7.2% CAGR.

Global Semiconductor Fabless Market – Key Trends & Drivers Summarized

Why Is The Fabless Semiconductor Model Gaining Popularity?

The fabless semiconductor model is becoming increasingly dominant as chip design companies focus on innovation while outsourcing fabrication to specialized foundries. Fabless semiconductor companies develop cutting-edge processors, GPUs, and AI accelerators without maintaining their own manufacturing facilities, reducing capital expenditures and increasing flexibility. This business model enables companies such as Qualcomm, NVIDIA, AMD, and Broadcom to concentrate on research, chip architecture, and optimization while leveraging foundries like TSMC and Samsung for wafer production. With the rise of AI, IoT, and 5G applications, the demand for custom-designed, high-performance semiconductors is driving growth in the fabless segment.

What Technological Innovations Are Advancing The Fabless Semiconductor Industry?

Advancements in chiplet-based designs, AI-accelerated semiconductor design, and 3D integration are transforming the fabless semiconductor landscape. Companies are leveraging AI-driven design automation to optimize chip layouts, reduce power consumption, and accelerate time to market. The transition from monolithic chips to modular, heterogeneous architectures is enabling the development of more powerful and energy-efficient processors. Additionally, open-source chip design initiatives, such as RISC-V, are promoting greater innovation in the fabless semiconductor ecosystem. These technological advancements are making it easier for new players to enter the market while enhancing performance for AI, data center, and mobile computing applications.

Which Industries Are Driving The Demand For Fabless Semiconductors?

The consumer electronics sector is a major driver of fabless semiconductor demand, with smartphones, tablets, gaming consoles, and smart home devices requiring custom-designed chip solutions. The automotive industry is also embracing fabless semiconductors for ADAS, EV power management, and in-car connectivity. The growth of AI, cloud computing, and edge computing is further fueling demand for specialized processors from fabless companies. Additionally, the expansion of 5G infrastructure and the rise of semiconductor applications in healthcare, robotics, and industrial automation are contributing to market growth.

What Factors Are Fueling The Growth Of The Fabless Semiconductor Market?

The growth of the fabless semiconductor market is being driven by increasing demand for specialized, high-performance chips, the rapid evolution of AI and machine learning applications, and advancements in semiconductor design automation. The ongoing semiconductor shortage has also highlighted the advantages of the fabless model, allowing companies to remain agile and adjust to market demands. Additionally, government incentives for semiconductor R&D and domestic chip production are fostering innovation in the fabless sector. As semiconductor applications continue to diversify, the fabless model is expected to remain a key driver of the industry’s future.

SCOPE OF STUDY:

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

Segments:
Type (Microcontrollers, Digital Signal Processors, Graphic Processing, Application Specific Integrated Circuits, Power Management ICs, Others); End-Use (Consumer Electronics, Automotive, Industrial, Telecommunication, Healthcare, Others)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 42 Featured) -

• Advanced Micro Devices, Inc. (AMD)
• Alchip Technologies, Inc.
• Ambarella Inc.
• Amlogic Inc.
• Apple Inc.
• Broadcom Inc.
• Cambridge Silicon Radio (CSR plc) (acquired by Qualcomm)
• Cavium, Inc. (acquired by Marvell)
• Cirrus Logic, Inc.
• Dialog Semiconductor (acquired by Renesas)
• eSilicon Corporation (acquired by Inphi Corporation)
• Greenliant Systems
• Himax Technologies, Inc.
• Lattice Semiconductor Corporation
• Marvell Technology Group Ltd.
• MediaTek Inc.
• Monolithic Power Systems, Inc.
• Nordic Semiconductor ASA
• Novatek Microelectronics Corp.
• NVIDIA Corporation
• Qualcomm Incorporated
• Rambus Inc.
• Realtek Semiconductor Corp.
• Rockchip (Fuzhou Rockchip Electronics Co., Ltd.)
• Silicon Laboratories Inc.
• SiTime Corporation
• UNISOC (Shanghai) Technologies Co., Ltd.
• Will Semiconductor Co., Ltd.
• XMOS Ltd.
• Zilog, Inc.

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.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

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.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

Please note: Reports are sold as single-site single-user licenses. Electronic versions require 24-48 hours as each copy is customized to the client with digital controls and custom watermarks. The Publisher uses digital controls protecting against copying and printing is restricted to one full copy to be used at the same location.

The latest version of Adobe Acrobat Reader is required to view the report. Upon ordering an electronic version, the Publisher will provide a link to download the purchased report.

Prior to fulfillment of an order, the client will be required to sign a document detailing the purchase terms for a publication from this publisher.