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Semiconductor Fabless Market Size to Reach USD 9.57 Billion By 2032, Rising at a CAGR of 9.60% – Report by S&S Insider

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Rapid adoption of emerging technologies like AI, ML, and IoT is driving significant demand for specialized semiconductor solutions in the Semiconductor fabless market.

Austin, Oct. 23, 2024 – Market Size & Growth Outlook:

According to the S&S Insider, “The Semiconductor Fabless Market Size was valued at USD 4.21 Billion in 2023 and is expected to reach USD 9.57 Billion by 2032 and grow at a CAGR of 9.60% over the forecast period 2024-2032.

Unleashing Innovation in the Semiconductor Fabless Market Through Rising Demand and Advanced Technologies

The growth of the Semiconductor Fabless Market is primarily driven by the increasing demand for innovative semiconductor solutions across various sectors, including Semiconductor Fabless, automotive, and telecommunications. The rise of advanced technologies such as artificial intelligence (AI), the Internet of Things (IoT), and 5G has created an insatiable need for high-performance semiconductors. Furthermore, the transition towards electric vehicles and smart technologies has accelerated the demand for specialized chips, prompting fabless companies to innovate rapidly. Additionally, the ongoing digitization across industries is fostering collaboration between fabless semiconductor firms and application developers, ensuring continuous growth in the market.

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Leading Market Players with their Product Listed in this Report are:

  • Qualcomm (Snapdragon 8 Gen 1, Snapdragon 888)
  • NVIDIA (GeForce RTX 3080, Jetson Xavier NX)
  • Broadcom (BCM43684 Wi-Fi Chip, BCM5880 Secure Microcontroller)
  • AMD (Advanced Micro Devices) (Ryzen 5000 Series, EPYC 7003 Series)
  • MediaTek (Dimensity 1200, Helio G95)
  • Texas Instruments (LMX2572 Frequency Synthesizer, Sitara AM57x Processor)
  • Marvell Technology (Octeon TX2 Processor, 88Q2112 Ethernet Switch)
  • Xilinx (now part of AMD) (Zynq UltraScale+ MPSoC, Kintex UltraScale FPGA)
  • Skyworks Solutions (SKY85310-11 Power Amplifier, SKY66420-21 RF Front-End Module)
  • Cirrus Logic (CS42L83 Audio Codec, CS47L35 Audio Hub)
  • ON Semiconductor (NCP81174 Power Management IC, FUSB302 USB Type-C Controller)
  • Infineon Technologies (AURIX TC3xx Microcontroller, EiceDRIVER Gate Driver)
  • Analog Devices (ADXL345 Accelerometer, ADAU1701 Audio Processor)
  • NXP Semiconductors (LPC5500 Microcontroller, i.MX 8M Application Processor)
  • STMicroelectronics (STM32F4 Microcontroller, LSM6DSO Inertial Measurement Unit)
  • Dialog Semiconductor (now part of Renesas) (DA14531 Bluetooth Low Energy SoC, SmartBond Bluetooth Solutions)
  • Silicon Labs (EFR32MG21 Wireless Gecko, Si5351 Clock Generator)
  • Lattice Semiconductor (MachXO3 FPGA, ECP5 FPGA)
  • Inphi (now part of Marvell Technology) (800G ZR Optical DSP, 100G CDR IC)
  • Rambus (Rambus Cryptographic Engine, Rambus DDR4 Memory Controller)

Fabless Semiconductor Market Report Scope:

Report Attributes Details
Market Size in 2023 USD 4.21 Billion
Market Size by 2032 USD 9.57 Billion
CAGR CAGR of 9.60% From 2024 to 2032
Report Scope & Coverage Market Size, Segments Analysis, Competitive  Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segments • By Type (Microcontrollers (MCUs), Digital Signal Processors (DSP), Graphic Processing Units (GPUs), Application Specific Integrated Circuits (ASIC), Power Management ICs (PMICs), Others),
• By End Use (Consumer Electronics, Automotive, Industrial, Telecommunication, Healthcare, Others.)
Key Drivers • IoT Expansion to Boost Demand for Semiconductor Fabless Components
• 5G Expansion Fuels Semiconductor Fabless Market Growth

The Semiconductor Fabless Market is experiencing significant growth driven by increasing demand for advanced devices and innovative manufacturing techniques across various industries.

The rising demand for fabless semiconductors is largely driven by the increasing utilization of advanced semiconductor devices across sectors such as Semiconductor Fabless, healthcare, and automotive electronics. Enhanced manufacturing techniques are further bolstering growth in the semiconductor market. As industries undergo digital transformation, the demand for semiconductors continues to soar, acting as a vital growth engine for the market. The fabless semiconductor model plays a crucial role in this landscape, as companies focus on designing and selling chips while outsourcing manufacturing to specialized foundries. This approach diverges from the traditional Integrated Device Manufacturer (IDM) model, allowing fabless companies to innovate freely and minimize capital expenditures associated with owning and operating fabrication facilities. With rapid technological advancements shaping every facet of the industry, the fabless model has emerged as a leader in developing next-generation chips for diverse applications in Semiconductor Fabless, automotive, industrial, telecommunications, and medical sectors. In the United States, semiconductor manufacturing capacity is projected to triple by 2032, reflecting a staggering 203% increase since the CHIPS Act was enacted in 2022. This growth positions the U.S. as the fastest-growing region globally, according to the Semiconductor Industry Association. Forecasts indicate that the U.S. will account for 28% of worldwide capital expenditures on semiconductor manufacturing from 2024 to 2032. In a notable development, a semiconductor veteran has launched a fabless chip company focused on the domestic power electronics, renewable energy, electric vehicle charging, and battery management sectors in India. Led by Raja Manickam, former CEO of Tata Electronics’ OSAT unit, the new venture plans to establish a 20,000 sq. ft. chip and module testing facility in Chennai in partnership with the Tamil Nadu Industrial Development Corporation (TIDCO), making it accessible to other semiconductor companies as well.

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ASIC Market Thrives as Semiconductor Fabless Demand Fuels Semiconductor Innovation and Growth

In 2023, the Application-Specific Integrated Circuit (ASIC) market accounted for nearly 40.35% of global revenues, driven by the demand for custom-made products and advancements in technologies like AI, ML, and 5G. Sectors such as automotive, Semiconductor Fabless, and telecommunications are making significant investments in ASIC development. In July 2024, Cyient announced the establishment of a wholly-owned subsidiary to enhance its capabilities in ASIC turnkey design and manufacturing on a fabless model, focusing on analog mixed-signal chips. This new subsidiary aims to deliver specialized ASIC designs and chip sales, allowing Cyient to better adapt to market cycles and address industry needs.

In 2023, the Semiconductor Fabless segment is expected to dominate the market, contributing 37.78% of global revenue due to the rising demand for advanced, feature-rich electronic devices. The latest technological advancements are driving the growth of Semiconductor Fabless, including smartphones, tablets, smartwatches, and smart home devices, all of which require sophisticated and efficient semiconductor solutions. The trend extends to IoT devices and wearable technology, further boosting the demand for specialized semiconductor components. As consumers increasingly seek products with modern technology, many semiconductor companies are actively developing new components to meet this growing market need.

Asia Pacific Leads Semiconductor Fabless Market Growth Driven by Innovation and Demand

n 2023, the Asia Pacific region led the global semiconductor fabless market, capturing 56.05% of the share, fueled by a strong focus on electronics manufacturing and technological innovations. Key players in this market include China, South Korea, Japan, and India, which host a significant number of fabless companies and end-use industries. The rising demand for Semiconductor Fabless, IoT applications, and the rollout of 5G technology further drive the need for advanced semiconductor components in the region. Meanwhile, the U.S. semiconductor fabless market is projected to grow at a CAGR of 10.65% from 2024 to 2030, emphasizing the necessity for investment in R&D and a skilled workforce to enhance semiconductor design capabilities.

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Recent Development

  • In August 2024, VanEck introduced the VanEck Fabless Semiconductor ETF (SMHX), targeting fabless semiconductor companies that emphasize design and R&D rather than manufacturing.
  • In May 2024, Mindgrove Technologies, a fabless semiconductor startup supported by Peak XV Partners, launched India’s first commercial high-performance system on chip (SoC) called Secure IoT.
  • In September 2024, Larsen & Toubro Ltd. intends to invest more than USD 300 million in a fabless chip company, planning to design 15 products by the end of the year and begin sales in 2027.

Table of Contents – Major Points

1. Introduction

2. Executive Summary

3. Research Methodology

4. Market Dynamics Impact Analysis

5. Statistical Insights and Trends Reporting

5.1 Semiconductor Fabless Wafer Production Volumes, by Region (2023)

5.2 Semiconductor Fabless Chip Design Trends (Historic and Future)

5.3 Semiconductor Fabless Capacity Utilization (2023)

5.4 Supply Chain Metrics

6. Competitive Landscape

7. Semiconductor Fabless Market Segmentation, by Type

8. Semiconductor Fabless Market Segmentation, by End Use

9. Regional Analysis

10. Company Profiles

11. Use Cases and Best Practices

12. Conclusion

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