Semiconductor Chip Market to Grow 16.1% Annually Despite Global Shortage

“A Deep Dive into Technological Advances, Market Forces, and Regulatory Initiatives Shaping the Semiconductor Chip Industry, Covering Electric Vehicles, Renewable Energy, Geopolitical Challenges, Supply Chain Resilience, and Global Policy Responses”

Boston, Nov. 14, 2025 (GLOBE NEWSWIRE) -- According to the latest study from BCC Research, “Semiconductor Chips: Applications and Impact of Shortage" is projected to grow from $737.2 billion in 2025 to $1.6 trillion by the end of 2030, at a compound annual growth rate (CAGR) of 16.1% during the forecast period of 2025 to 2030.

The report offers a detailed analysis of the global semiconductor chip market, segmented by node size, chip type, and application. It explores regional dynamics across North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa, while highlighting key market drivers, challenges, and technological advances. The study also looks at innovations in material design and performance, concluding with insights into leading companies and their product offerings.

This report is highly relevant right now due to the rapid growth and transformation of the semiconductor chip industry, driven by the rising demand for digital infrastructure and advanced chip solutions. Key factors include the widespread adoption of AI and machine learning (ML), the rollout of 5G networks, and the surge in smart devices and EVs. Innovations like 3D stacking, chiplet integration, and energy-efficient designs are pushing the boundaries of performance and functionality. Additionally, global policy initiatives such as the U.S. CHIPS Act and the EU Chips Act are strengthening local manufacturing and R&D, making the semiconductor supply chain more resilient and future-ready.

The factors driving the market’s growth include:

Continuing Growth of Consumer Electronics: The ever-increasing popularity of smartphones, laptops, smart TVs, and wearables, which rely on advanced processors and memory, is driving demand for semiconductor chips. When chip shortages occur, it leads to production delays, higher prices, and limited availability of popular devices.

Demand for AI-powered IoT Solutions: As more devices become connected through the Internet of Things (IoT), there is a growing need for chips that can handle AI processing at the edge. These chips enable smart homes, industrial automation, and real-time analytics, but shortages can slow down innovation and deployment in these areas.

Expansion of Data Centers and Cloud Computing: Cloud computing and big data analytics require powerful chips for servers and storage in data centers. The rapid growth of online services, streaming, and enterprise applications increases this demand, and any chip shortage can disrupt cloud service expansion and digital transformation efforts.

Demand for Electric Vehicles: EVs use far more chips than traditional cars, powering everything from battery management to infotainment and safety systems. Chip shortages can halt EV production, delay new model launches, and limit the rollout of advanced automotive features.

Government Initiatives for Domestic Chip Production: Governments worldwide are investing in local semiconductor manufacturing to reduce reliance on imports and strengthen supply chains. While these initiatives aim to address long-term shortages, the current lack of domestic capacity can still leave industries vulnerable to global supply disruptions.

Emergence of 5G and Edge Computing Technologies: The rollout of 5G networks and edge computing solutions requires specialized chips for high-speed, low-latency data processing. Shortages in these chips can delay the deployment of next-generation connectivity and limit the growth of new digital services and applications.

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Report Synopsis

Interesting facts:

• The other node size category, which includes 3nm, 5nm, 7nm, and others, is expected to grow at a CAGR of over 25.2% through 2030. With the rise in demand for compact system-on-chip-based advanced electronics solutions, the use of 3nm, 5nm, and 7nm node sizes is growing significantly.

• The memory chip segment by type is showing strong growth during the forecast period, due to the surge in the need for advanced gaming, cloud computing, and AI solutions. The rise in global data centers is also propelling the demand for memory chips.

• Integration of advanced computational technologies in semiconductor manufacturing has improved chip efficiency and time-to-market, enabling companies to develop smaller, faster, and more energy-efficient processors. These innovations support critical applications such as autonomous vehicles, smart healthcare devices, and intelligent edge computing. All these leads to enhanced performance, reduced power consumption, and scalable deployment of next-generation technologies.

Emerging startups:

• Ayar Labs
• Axelera AI
• Celestial AI

The report addresses the following questions:

1. What are the projected size and growth rate of the market?

• The market is projected to reach $1.6 trillion by 2030, growing at a CAGR of 16.1% during the forecast period.

2. What factors are driving the growth of the market?

• The key factors driving the market include a rise in the adoption of consumer electronics solutions, a surge in demand for AI-powered IoT solutions, and demand for chips in 5G applications.

3. What are the restraints/challenges and opportunities of the market?

• The semiconductor chips market faces restraints, such as the requirement for high initial investment and a rise in geopolitical tensions. However, it also presents strong growth opportunities, driven by the increasing rise in government initiatives, the surge in demand for EVs, and the growth in industrial automation and robotics.

4. What market segments are covered in the report?

• The market is segmented by type, node size and application.

5. Which product type segment will be dominant through 2030?

• By product type, logic ICs are expected to dominate the market through 2030, driven by the need for systems-on-a-chip (SoCs) and edge devices in smartphones, automotive ECUs, AI inference engines, and embedded systems.

6. Which region has the largest market share?

• Asia-Pacific holds the largest share of the global semiconductor chips market due to its large-scale chip manufacturing hubs, government subsidies, high export volume, and increasing demand from electronics and automotive industries.

Market leaders include:

• ADVANCED MICRO DEVICES INC.
• BROADCOM
• INTEL CORP.
• INFINEON TECHNOLOGIES AG
• MICRON TECHNOLOGY INC.
• NVIDIA CORP.
• NXP SEMICONDUCTORS
• QUALCOMM TECHNOLOGIES INC.
• RENESAS ELECTRONICS CORP.
• SAMSUNG
• SK INC.
• SMIC
• STMICROELECTRONICS
• TAIWAN SEMICONDUCTOR MANUFACTURING CO. LTD.
• TEXAS INSTRUMENTS INC.

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