North America Semiconductor Market Outlook to 2028
Description
North America Semiconductor Market Overview
The North America semiconductor market is valued at USD 106.2 billion, driven by increasing demand across various industries such as automotive, consumer electronics, and telecommunications. The growth is supported by technological advancements, including the adoption of artificial intelligence (AI), the Internet of Things (Io T), and 5G networks. Furthermore, government initiatives such as the CHIPS Act are propelling local production and innovation, ensuring supply chain resilience. Semiconductor components like microchips and memory are essential in the manufacturing of consumer gadgets, electric vehicles, and industrial automation systems, driving steady market growth.
Major semiconductor hubs in North America include the United States, primarily due to its well-established tech ecosystem, and Canada, which is known for its innovation in AI and quantum computing. The dominance of these countries is rooted in their strong investment in R&D, access to skilled labor, and a robust supply chain. Leading cities like Silicon Valley in the U.S. play a pivotal role in pushing technological boundaries and maintaining North Americas competitive edge in the global semiconductor market.
The United States-Mexico-Canada Agreement (USMCA) has streamlined trade in semiconductors, facilitating cross-border supply chains and reducing tariffs on electronic components. In 2023, the U.S. saw over $40 billion worth of semiconductors and related equipment imported from Mexico and Canada under the USMCA framework. The agreement also includes provisions to protect intellectual property (IP) and promote cooperation on regulatory standards, making it easier for North American companies to export semiconductors and related products within the region.
North America Semiconductor Market Segmentation
By Product Type: The North America semiconductor market is segmented by product type into memory chips, logic ICs, analog ICs, optoelectronics, and discrete devices. Logic ICs currently dominate the market due to their widespread application in central processing units (CPUs) and system-on-chip (So C) designs, which are vital for smartphones, data centers, and automotive systems. The increasing demand for energy-efficient processors and the rising integration of AI technologies in devices is driving the adoption of advanced logic ICs.
By Application: In terms of application, the North America semiconductor market is segmented into automotive, consumer electronics, industrial automation, telecommunications, and data centers. The data center segment holds a significant share in the market, largely driven by the growing need for cloud computing, artificial intelligence, and machine learning applications. Major tech firms are investing heavily in expanding their data center capabilities, which is boosting the demand for high-performance semiconductors, particularly those used in servers and networking equipment.
North America Semiconductor Market Competitive Landscape
The North America semiconductor market is dominated by several key players, including large multinational corporations with extensive R&D capabilities and innovative technologies. These companies maintain strong positions due to their robust supply chain networks, partnerships with major OEMs, and continuous investment in new technologies such as advanced node manufacturing, AI chips, and quantum computing components.
Company
Establishment Year
Headquarters
Revenue (USD Bn)
R&D Spend (USD Bn)
No. of Patents
Fab Ownership
Technology Node Capability
Major Partnerships
Intel Corporation
1968
Santa Clara, CA, USA
NVIDIA Corporation
1993
Santa Clara, CA, USA
Qualcomm Technologies, Inc.
1985
San Diego, CA, USA
Texas Instruments
1930
Dallas, TX, USA
Advanced Micro Devices, Inc.
1969
Santa Clara, CA, USA
North America Semiconductor Market Analysis
North America Semiconductor Market Growth Drivers
Technological Advancements: Technological advancements, including artificial intelligence (AI), Internet of Things (Io T), and 5G, are driving North America's semiconductor market forward. The U.S. alone has seen over 1 billion connected Io T devices in 2024, enhancing demand for semiconductor components in sensors, smart devices, and networking equipment. AI workloads, particularly in the United States, are projected to double by the end of 2025, contributing to the expansion of high-performance chips designed for machine learning and data processing. The quantum computing sector is also growing, with over $1.2 billion in federal funding allocated for quantum research since 2023.
Increasing Demand in Automotive Industry: The automotive industry is a significant growth driver for semiconductors, particularly with the rise of electric vehicles (EVs) and advanced driver assistance systems (ADAS). In 2023, North America saw over 700,000 EVs sold, each utilizing between 3,000 and 5,000 semiconductor chips. With over 55% of newly produced vehicles in 2024 incorporating ADAS features, demand for automotive-grade chips is steadily increasing. Furthermore, global EV production is set to reach over 10 million units by 2025, which will directly boost semiconductor demand for power management and in-car communication systems.
Demand in Data Centers: The increasing demand for data centers, driven by cloud computing and AI workloads, has accelerated semiconductor use in North America. By 2024, North America will have over 2,000 operational data centers, with more than 40% located in the United States. These centers require a large number of advanced semiconductor chips for server infrastructure, memory, and data processing units. AI workloads in data centers have led to the development of specialized chips, such as GPUs and NPUs, to support high-intensity computations, which further drives market demand.
North America Semiconductor Market Challenges
Supply Chain Disruptions: Supply chain disruptions, fueled by geopolitical tensions and natural disasters, continue to affect semiconductor production in North America. In 2023, severe semiconductor shortages occurred due to natural disasters impacting production facilities in Asia, while trade tensions between the U.S. and China limited access to raw materials like silicon. These disruptions caused a backlog in semiconductor deliveries, with lead times for some critical chips exceeding 50 weeks in 2024. The U.S. government has responded by increasing investment in domestic supply chain resilience.
High R&D and Production Costs: The high costs of research and development (R&D) and semiconductor production present a challenge for the industry. In 2023, semiconductor R&D costs in the U.S. exceeded $80 billion, with cutting-edge technologies like extreme ultraviolet (EUV) lithography requiring immense capital investments. Setting up a state-of-the-art semiconductor fabrication plant can cost between $15 billion and $20 billion, making it difficult for smaller players to enter the market. The high costs limit innovation to a select few, primarily large corporations, restricting broader industry growth.
North America Semiconductor Market Future Outlook
Over the next five years, the North America semiconductor market is expected to experience sustained growth, driven by the increasing integration of semiconductors into emerging technologies such as electric vehicles, autonomous driving, AI-driven applications, and Io T-enabled devices. The demand for high-performance chips in data centers and AI applications will continue to fuel market expansion, alongside government incentives to bolster local manufacturing.
North America Semiconductor Market Opportunities
Growth in 5G Infrastructure Deployment: The rapid deployment of 5G infrastructure across North America presents significant opportunities for the semiconductor industry. In 2024, the U.S. alone is expected to have over 500,000 5G base stations installed, each requiring advanced semiconductor components for signal processing and network management. Semiconductor demand is driven by the necessity for RF chips, power amplifiers, and networking equipment, as telecom companies continue to upgrade their infrastructure to meet growing mobile and fixed broadband demands.
Expansion in Emerging Markets: The expansion of wearables and smart devices is a key growth opportunity for the semiconductor industry. In 2024, North America is expected to see over 250 million wearable devices in use, ranging from smartwatches to health-monitoring devices, all of which require semiconductors for functionality. Similarly, the smart home market is growing rapidly, with over 100 million smart devices shipped in 2023. This trend drives demand for microcontrollers, sensors, and connectivity chips, providing ample growth opportunities for semiconductor manufacturers.
Please Note: It will take 5-7 business days to complete the report upon order confirmation
The North America semiconductor market is valued at USD 106.2 billion, driven by increasing demand across various industries such as automotive, consumer electronics, and telecommunications. The growth is supported by technological advancements, including the adoption of artificial intelligence (AI), the Internet of Things (Io T), and 5G networks. Furthermore, government initiatives such as the CHIPS Act are propelling local production and innovation, ensuring supply chain resilience. Semiconductor components like microchips and memory are essential in the manufacturing of consumer gadgets, electric vehicles, and industrial automation systems, driving steady market growth.
Major semiconductor hubs in North America include the United States, primarily due to its well-established tech ecosystem, and Canada, which is known for its innovation in AI and quantum computing. The dominance of these countries is rooted in their strong investment in R&D, access to skilled labor, and a robust supply chain. Leading cities like Silicon Valley in the U.S. play a pivotal role in pushing technological boundaries and maintaining North Americas competitive edge in the global semiconductor market.
The United States-Mexico-Canada Agreement (USMCA) has streamlined trade in semiconductors, facilitating cross-border supply chains and reducing tariffs on electronic components. In 2023, the U.S. saw over $40 billion worth of semiconductors and related equipment imported from Mexico and Canada under the USMCA framework. The agreement also includes provisions to protect intellectual property (IP) and promote cooperation on regulatory standards, making it easier for North American companies to export semiconductors and related products within the region.
North America Semiconductor Market Segmentation
By Product Type: The North America semiconductor market is segmented by product type into memory chips, logic ICs, analog ICs, optoelectronics, and discrete devices. Logic ICs currently dominate the market due to their widespread application in central processing units (CPUs) and system-on-chip (So C) designs, which are vital for smartphones, data centers, and automotive systems. The increasing demand for energy-efficient processors and the rising integration of AI technologies in devices is driving the adoption of advanced logic ICs.
By Application: In terms of application, the North America semiconductor market is segmented into automotive, consumer electronics, industrial automation, telecommunications, and data centers. The data center segment holds a significant share in the market, largely driven by the growing need for cloud computing, artificial intelligence, and machine learning applications. Major tech firms are investing heavily in expanding their data center capabilities, which is boosting the demand for high-performance semiconductors, particularly those used in servers and networking equipment.
North America Semiconductor Market Competitive Landscape
The North America semiconductor market is dominated by several key players, including large multinational corporations with extensive R&D capabilities and innovative technologies. These companies maintain strong positions due to their robust supply chain networks, partnerships with major OEMs, and continuous investment in new technologies such as advanced node manufacturing, AI chips, and quantum computing components.
Company
Establishment Year
Headquarters
Revenue (USD Bn)
R&D Spend (USD Bn)
No. of Patents
Fab Ownership
Technology Node Capability
Major Partnerships
Intel Corporation
1968
Santa Clara, CA, USA
NVIDIA Corporation
1993
Santa Clara, CA, USA
Qualcomm Technologies, Inc.
1985
San Diego, CA, USA
Texas Instruments
1930
Dallas, TX, USA
Advanced Micro Devices, Inc.
1969
Santa Clara, CA, USA
North America Semiconductor Market Analysis
North America Semiconductor Market Growth Drivers
Technological Advancements: Technological advancements, including artificial intelligence (AI), Internet of Things (Io T), and 5G, are driving North America's semiconductor market forward. The U.S. alone has seen over 1 billion connected Io T devices in 2024, enhancing demand for semiconductor components in sensors, smart devices, and networking equipment. AI workloads, particularly in the United States, are projected to double by the end of 2025, contributing to the expansion of high-performance chips designed for machine learning and data processing. The quantum computing sector is also growing, with over $1.2 billion in federal funding allocated for quantum research since 2023.
Increasing Demand in Automotive Industry: The automotive industry is a significant growth driver for semiconductors, particularly with the rise of electric vehicles (EVs) and advanced driver assistance systems (ADAS). In 2023, North America saw over 700,000 EVs sold, each utilizing between 3,000 and 5,000 semiconductor chips. With over 55% of newly produced vehicles in 2024 incorporating ADAS features, demand for automotive-grade chips is steadily increasing. Furthermore, global EV production is set to reach over 10 million units by 2025, which will directly boost semiconductor demand for power management and in-car communication systems.
Demand in Data Centers: The increasing demand for data centers, driven by cloud computing and AI workloads, has accelerated semiconductor use in North America. By 2024, North America will have over 2,000 operational data centers, with more than 40% located in the United States. These centers require a large number of advanced semiconductor chips for server infrastructure, memory, and data processing units. AI workloads in data centers have led to the development of specialized chips, such as GPUs and NPUs, to support high-intensity computations, which further drives market demand.
North America Semiconductor Market Challenges
Supply Chain Disruptions: Supply chain disruptions, fueled by geopolitical tensions and natural disasters, continue to affect semiconductor production in North America. In 2023, severe semiconductor shortages occurred due to natural disasters impacting production facilities in Asia, while trade tensions between the U.S. and China limited access to raw materials like silicon. These disruptions caused a backlog in semiconductor deliveries, with lead times for some critical chips exceeding 50 weeks in 2024. The U.S. government has responded by increasing investment in domestic supply chain resilience.
High R&D and Production Costs: The high costs of research and development (R&D) and semiconductor production present a challenge for the industry. In 2023, semiconductor R&D costs in the U.S. exceeded $80 billion, with cutting-edge technologies like extreme ultraviolet (EUV) lithography requiring immense capital investments. Setting up a state-of-the-art semiconductor fabrication plant can cost between $15 billion and $20 billion, making it difficult for smaller players to enter the market. The high costs limit innovation to a select few, primarily large corporations, restricting broader industry growth.
North America Semiconductor Market Future Outlook
Over the next five years, the North America semiconductor market is expected to experience sustained growth, driven by the increasing integration of semiconductors into emerging technologies such as electric vehicles, autonomous driving, AI-driven applications, and Io T-enabled devices. The demand for high-performance chips in data centers and AI applications will continue to fuel market expansion, alongside government incentives to bolster local manufacturing.
North America Semiconductor Market Opportunities
Growth in 5G Infrastructure Deployment: The rapid deployment of 5G infrastructure across North America presents significant opportunities for the semiconductor industry. In 2024, the U.S. alone is expected to have over 500,000 5G base stations installed, each requiring advanced semiconductor components for signal processing and network management. Semiconductor demand is driven by the necessity for RF chips, power amplifiers, and networking equipment, as telecom companies continue to upgrade their infrastructure to meet growing mobile and fixed broadband demands.
Expansion in Emerging Markets: The expansion of wearables and smart devices is a key growth opportunity for the semiconductor industry. In 2024, North America is expected to see over 250 million wearable devices in use, ranging from smartwatches to health-monitoring devices, all of which require semiconductors for functionality. Similarly, the smart home market is growing rapidly, with over 100 million smart devices shipped in 2023. This trend drives demand for microcontrollers, sensors, and connectivity chips, providing ample growth opportunities for semiconductor manufacturers.
Please Note: It will take 5-7 business days to complete the report upon order confirmation
Table of Contents
98 Pages
- 1. North America Semiconductor Market Overview
- 1.1. Definition and Scope
- 1.2. Market Taxonomy
- 1.3. Market Growth Rate
- 1.4. Market Segmentation Overview
- 2. North America Semiconductor Market Size (In USD Bn)
- 2.1. Historical Market Size
- 2.2. Year-On-Year Growth Analysis
- 2.3. Key Market Developments and Milestones
- 3. North America Semiconductor Market Analysis
- 3.1. Growth Drivers
- 3.1.1. Technological Advancements (AI, IoT, 5G, Quantum Computing)
- 3.1.2. Increasing Demand in Automotive Industry (EVs, ADAS)
- 3.1.3. Government Initiatives (CHIPS Act, Supply Chain Resilience)
- 3.1.4. Demand in Data Centers (Cloud Computing, AI Workloads)
- 3.2. Market Challenges
- 3.2.1. Supply Chain Disruptions (Geopolitical Tensions, Natural Disasters)
- 3.2.2. High R&D and Production Costs
- 3.2.3. Shortage of Skilled Workforce
- 3.3. Opportunities
- 3.3.1. Growth in 5G Infrastructure Deployment
- 3.3.2. Expansion in Emerging Markets (Wearables, Smart Devices)
- 3.3.3. Rise in AI and Machine Learning Applications
- 3.4. Trends
- 3.4.1. Shift Towards Advanced Packaging and Miniaturization
- 3.4.2. Increase in Semiconductor Foundry Investments
- 3.4.3. Collaboration in R&D and Innovation (Chiplet Technology, Advanced Lithography)
- 3.5. Government Regulations
- 3.5.1. North American Free Trade Agreements (USMCA, Tariff Structures)
- 3.5.2. Export Control Regulations (Semiconductor Equipment and Technology)
- 3.5.3. Environmental Regulations (Sustainable Manufacturing Practices)
- 3.6. SWOT Analysis
- 3.7. Stake Ecosystem
- 3.7.1. Suppliers (Raw Material, Equipment)
- 3.7.2. Manufacturers (IDMs, Foundries)
- 3.7.3. Distributors and OEMs
- 3.8. Porters Five Forces Analysis
- 3.8.1. Bargaining Power of Suppliers
- 3.8.2. Bargaining Power of Buyers
- 3.8.3. Threat of New Entrants
- 3.8.4. Threat of Substitutes
- 3.8.5. Industry Rivalry
- 3.9. Competition Ecosystem
- 4. North America Semiconductor Market Segmentation
- 4.1. By Product Type (In Value %)
- 4.1.1. Memory Chips (DRAM, NAND)
- 4.1.2. Logic ICs (Microprocessors, SoCs)
- 4.1.3. Analog ICs (Power Management, Signal Processing)
- 4.1.4. Optoelectronics (LEDs, Image Sensors)
- 4.1.5. Discrete Devices (Transistors, Diodes)
- 4.2. By Application (In Value %)
- 4.2.1. Automotive
- 4.2.2. Consumer Electronics
- 4.2.3. Industrial Automation
- 4.2.4. Telecommunications
- 4.2.5. Data Centers
- 4.3. By Material Type (In Value %)
- 4.3.1. Silicon
- 4.3.2. Gallium Nitride (GaN)
- 4.3.3. Silicon Carbide (SiC)
- 4.3.4. Germanium
- 4.4. By Technology Node (In Value %)
- 4.4.1. 5nm and Below
- 4.4.2. 7nm to 14nm
- 4.4.3. 28nm and Above
- 4.5. By Region (In Value %)
- 4.5.1. United States
- 4.5.2. Canada
- 4.5.3. Mexico
- 5. North America Semiconductor Market Competitive Analysis
- 5.1. Detailed Profiles of Major Companies
- 5.1.1. Intel Corporation
- 5.1.2. NVIDIA Corporation
- 5.1.3. Qualcomm Technologies, Inc.
- 5.1.4. Texas Instruments
- 5.1.5. Advanced Micro Devices, Inc. (AMD)
- 5.1.6. Micron Technology, Inc.
- 5.1.7. Broadcom Inc.
- 5.1.8. ON Semiconductor Corporation
- 5.1.9. Marvell Technology Group Ltd.
- 5.1.10. Analog Devices, Inc.
- 5.1.11. GlobalFoundries
- 5.1.12. Lam Research Corporation
- 5.1.13. Applied Materials, Inc.
- 5.1.14. Skyworks Solutions, Inc.
- 5.1.15. Synopsys, Inc.
- 5.2. Cross Comparison Parameters (Revenue, Market Cap, R&D Expenditure, No. of Patents, Fab Ownership, Technology Node Capability, Geographic Reach, Major Partnerships)
- 5.3. Market Share Analysis
- 5.4. Strategic Initiatives
- 5.5. Mergers and Acquisitions
- 5.6. Investment Analysis
- 5.7. Venture Capital Funding
- 5.8. Government Grants and Incentives
- 6. North America Semiconductor Market Regulatory Framework
- 6.1. Environmental Compliance (Emissions Control, Waste Management)
- 6.2. Trade Compliance (Import/Export Licensing, Tariffs)
- 6.3. Certification and Standards (ISO, JEDEC, IPC Standards)
- 7. North America Semiconductor Future Market Size (In USD Bn)
- 7.1. Future Market Size Projections
- 7.2. Key Factors Driving Future Market Growth
- 8. North America Semiconductor Market Segmentation
- 8.1. By Product Type (In Value %)
- 8.2. By Application (In Value %)
- 8.3. By Material Type (In Value %)
- 8.4. By Technology Node (In Value %)
- 8.5. By Region (In Value %)
- 9. North America Semiconductor Market Analysts Recommendations
- 9.1. TAM/SAM/SOM Analysis
- 9.2. Customer Cohort Analysis
- 9.3. Marketing Initiatives
- 9.4. White Space Opportunity Analysis
- Disclaimer
- Contact Us
Pricing
Currency Rates
Questions or Comments?
Our team has the ability to search within reports to verify it suits your needs. We can also help maximize your budget by finding sections of reports you can purchase.
