Semiconductor industry

The semiconductor industry is the aggregate of companies engaged in the design and fabrication of semiconductors and semiconductor devices, such as transistors and integrated circuits. Its roots can be traced to the invention of the transistor by Shockley, Brattain, and Bardeen at Bell Labs in 1948.<ref>Template:Cite journal</ref><ref>Template:Cite journal</ref> Bell Labs licensed the technology for $25,000,<ref>Template:Cite book</ref> and soon many companies, including Motorola (1952),<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> Schockley Semiconductor (1955), Sylvania, Centralab, Fairchild Semiconductor and Texas Instruments were making transistors. In 1958 Jack Kilby of Texas Instruments and Robert Noyce of Fairchild independently invented the Integrated Circuit, a method of producing multiple transistors on a single "chip" of Semiconductor material. This kicked off a number of rapid advances in fabrication technology leading to the exponential growth in semiconductor device production, known as Moore's law that has persisted over the past six or so decades. The industry's annual semiconductor sales revenue has since grown to over Template:US$, as of 2018.<ref name="deloitte"/>

In 2010, the semiconductor industry had the highest intensity of Research & Development in the EU and ranked second after Biotechnology in the EU, United States and Japan combined.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>

The semiconductor industry is in turn the driving force behind the wider electronics industry,<ref>Template:Cite news</ref> with annual power electronics sales of £135Template:Nbspbillion (Template:US$) as of 2011,<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> annual consumer electronics sales expected to reach Template:US$ by 2020,<ref>Template:Cite news</ref> tech industry sales expected to reach Template:US$ in 2019,<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> and e-commerce with over Template:US$ in 2017.<ref>Template:Cite news</ref> In 2019, 32.4% of the semiconductor market segment was for networks and communications devices.<ref>Template:Cite journal</ref>

In 2021, the sales of semiconductors reached a record $555.9 billion, up 26.2%, with sales in China reaching $192.5 billion, according to the Semiconductor Industry Association. A record 1.15 trillion semiconductor units were shipped in the calendar year.<ref>Template:Cite news</ref> The semiconductor industry is projected to reach $726.73 billion by 2027.<ref>Template:Cite journal</ref>

Industry structure

The global semiconductor industry is dominated by companies from the United States, Taiwan, South Korea, Japan and the Netherlands, with Israel and Germany having significant presence in the field.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>

File:Who exported Electronic integrated circuits in 2016.svg

Electronic integrated circuit export by country or region as of 2016, by HS4 trade classification

File:Who exported Semiconductor devices in 2016.svg

Export of discrete semiconductors as of 2016, by United Nations Harmonized Commodity Description and Coding Systems 4

Unique features of the industry include continuous growth but in a cyclical pattern with high volatility. While the current 20-year annual average growth of the semiconductor industry is on the order of 13%, this has been accompanied by equally above-average market volatility, which can lead to significant if not dramatic cyclical swings. This has required the need for high degrees of flexibility and innovation in order to constantly adjust to the rapid pace of change in the market as many products embedding semiconductor devices often have a very short life cycle.Template:Citation needed

At the same time, the rate of constant price-performance improvement in the semiconductor industry is staggering. As a consequence, changes in the semiconductor market not only occur extremely rapidly but also anticipate changes in industries evolving at a slower pace. The semiconductor industry is widely recognized as a key driver and technology enabler for the whole electronics value chain.<ref>Staff, ReportLinker. “Global Semiconductor Market Outlook 2022 Template:Webarchive.” January 13, 2016. February 19, 2016.</ref>

Prior to the 1980s, the semiconductor industry was vertically integrated. Semiconductor companies both designed and manufactured chips in their own facilities. In many cases, this included inventing new processes, refining and purifying source chemicals and silicon wafers, and even manufacturing equipment, like furnaces, lithography tools and etchers. These companies also carried out the assembly and testing of their chips. Over time, many of these functions were outsourced, such that today semiconductor manufacturers rely on a complex supply chain to provide wafers, high purity source chemicals, and processing equipment. Further, starting with LSI in 1969, the industry has seen the emergence of Fabless Semiconductor Companies that focus solely on chip design and rely on other companies to manufacture their designs. Initially, these other companies were integrated device manufacturers (IDMs), companies that also designed and manufactured their own products, and thus were often competitors of the Fabless companies. But, by the mid-1980's TSMC and UMC emerged as foundries, specializing solely in the manufacture of other companies' designs.

Today, much of the industry is based on the foundry model, which consists of semiconductor fabrication plants (foundries) and integrated circuit design operations, each belonging to separate companies or subsidiaries. Some companies, known as integrated device manufacturers, both design and manufacture semiconductors. The foundry model has resulted in consolidation among foundries. As of 2021, only three firms are able to manufacture the most advanced semiconductors: TSMC of Taiwan, Samsung of South Korea, and Intel of the United States.<ref name="Economist2021">Template:Cite news</ref> Part of this is due to the high capital costs of building foundries. TSMC's latest factory, capable of fabricating 3 nm process semiconductors and completed in 2020, cost $19.5 billion.<ref name="Economist2021"/>

Intel is considering outsourcing some production to TSMC. It currently can only produce 10 nm semiconductors, while TSMC and Samsung can both produce 5 nm.<ref name="Economist2021"/> GlobalFoundries, an American-headquartered firm, uses a 12 nm process for its most advanced chips due to the rapidly increasing development costs of smaller process nodes.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>

Semiconductor sales

Sales revenue

Annual semiconductor sales (1987Template:Ndash2018) Year Revenue (nominal) Revenue (inflation) Template:Abbr 2022 $601,694,000,000 <ref>{{#invoke:citation/CS1|citation CitationClass=web }}</ref> 2021 $594,952,000,000 2020 $466,237,000,000 <ref>{{#invoke:citation/CS1|citation CitationClass=web }}</ref> 2019 $422,237,000,000 2018 $481,090,000,000 Template:US$ citation CitationClass=web }}</ref> 2017 $420,390,000,000 Template:US$ <ref name="deloitte"/> 2016 $345,850,000,000 Template:US$ <ref name="deloitte"/> 2015 $335,170,000,000 Template:US$ <ref name="statista">{{#invoke:citation/CS1|citation CitationClass=web }}</ref> 2014 $335,840,000,000 Template:US$ 2013 $305,580,000,000 Template:US$ 2012 $291,560,000,000 Template:US$ 2011 $299,520,000,000 Template:US$ 2010 $298,320,000,000 Template:US$ 2009 $226,310,000,000 Template:US$ 2008 $280,000,000,000 Template:US$ 2007 $255,600,000,000 Template:US$ <ref>Template:Cite news</ref> 2006 $247,700,000,000 Template:US$ 2005 $227,000,000,000 Template:US$ <ref name="statista"/> 2004 $213,000,000,000 Template:US$ 2000 $204,000,000,000 Template:US$ 1995 $144,000,000,000 Template:US$ 1992 $60,000,000,000 Template:US$ 1990 $51,000,000,000 Template:US$ 1987 $33,000,000,000 Template:US$

2017 sales breakdown<ref name="deloitte"/> Industry sector Revenue Market share Template:Abbr Memory $124 billion {{#expr:(124/412.12)*100 round 0}}% <ref>Template:Cite news</ref> Logic $102.2 billion {{#expr:(102.2/412.12)*100 round 0}}% Microprocessor $63.9 billion {{#expr:(63.9/412.12)*100 round 0}}% Power semiconductors $36.8 billion {{#expr:(36.8/420.39)*100 round 0}}% <ref>Template:Cite news</ref> Total $420.39 billion 100% 2008 sales breakdown Semiconductor type Revenue Market share Template:Abbr Integrated circuit chip $250 billion {{#expr:(250/280)*100 round 1}}% <ref name="Woodall">Template:Cite book</ref> Compound semiconductors $20 billion {{#expr:(20/280)*100 round 1}}% Power transistors $10 billion {{#expr:(10/280)*100 round 1}}% <ref>Template:Cite news</ref> Total Template:US$ 100%

Market share

Microprocessor market share (2022)<ref name="Asthana">Template:Cite book</ref>

Industry sector	Market share
Computer and peripheral equipment	32.3%
Consumer electronics	21.2%
Telecommunications equipment	16.5%
Industrial electronics	14.3%
Defense and space industry	11.5%
Transportation technology	4.2%

Largest companies

Largest semiconductor companies (annual semiconductor sales leaders)

Rank	citation	CitationClass=web }}</ref>	citation	CitationClass=web }}</ref>	2018<ref name="electronics weekly">Template:Cite news</ref>	2017<ref name="electronics weekly"/>	citation	CitationClass=web }}</ref>	2006<ref name="insights">Template:Cite news</ref>	2000<ref name="insights"/>	1995<ref name="insights" />	citation	CitationClass=web }}</ref>	1990<ref name="insights" />	citation	CitationClass=web }}</ref>	1985<ref name="insights" />	1975<ref name="shmj"/>
1	Samsung	Intel	Samsung	Samsung	Intel	Intel	Intel	Intel	NEC	NEC	NEC	NEC	TI
2	Intel	Samsung	Intel	Intel	Samsung	Samsung	Toshiba	NEC	Toshiba	Toshiba	Toshiba	TI	Motorola
3	SK Hynix	TSMC	SK Hynix	TSMC	TSMC	TI	NEC	Toshiba	Intel	Hitachi	Hitachi	Motorola	Philips
4	Micron	SK Hynix	TSMC	SK Hynix	TI	Toshiba	Samsung	Hitachi	Motorola	Intel	Template:?	Hitachi	Template:?
5	Qualcomm	Micron	Micron	Micron	Toshiba	ST	TI	Motorola	Hitachi	Motorola	Template:?	Toshiba
6	Nvidia	Qualcomm	Broadcom	Broadcom	Renesas	Renesas	Motorola	Samsung	TI	Fujitsu	Template:?	Fujitsu
7	Broadcom	Broadcom	Qualcomm	Qualcomm	Qualcomm	Hynix	ST	TI	Template:?	Mitsubishi	Template:?	Philips
8	TI	Nvidia	Toshiba	TI	ST	Freescale	Hitachi	IBM	Mitsubishi	TI	Template:?	Intel
9	Mediatek	TI	TI	Toshiba	Hynix	NXP	Infineon	Mitsubishi	Template:?	Philips	Template:?	National
10	AMD	Infineon	Nvidia	Nvidia	Micron	NEC	Philips	Hyundai	Template:?	Panasonic	Template:?	Panasonic

Major semiconductor companies

Name	Country	citation	CitationClass=web }}</ref>	Hardware products
Samsung Electronics	Template:Flagcountry	IDM	NAND flash memory, DRAM, CMOS sensor, RF transceivers, OLED display, SSD
Intel	Template:Flagcountry	IDM	x86-64 microprocessor, GPU, SSD, DRAM
TSMC	Template:Flagcountry	Pure-play
SK HynixTemplate:Efn	Template:Flagcountry	IDM	flash memory, DRAM, SSD, CMOS sensor
MicronTemplate:Efn	Template:Flagcountry	IDM	DRAM, NAND flash, SSD, NOR flash, Managed NAND, multichip packages
Qualcomm	Template:Flagcountry	Fabless	RF module, digital signal processor, Snapdragon system on chip
Broadcom	Template:Flagcountry	Fabless	Broadband/Wi-Fi/Bluetooth modems, Custom DSP & ARM CPUs
KioxiaTemplate:Efn	Template:Flagcountry	IDM	NAND flash memory, SSD
Texas Instruments (TI)	Template:Flagcountry	IDM	Microcontroller, SoC, DSP, Amplifiers, data converters
Analog DevicesTemplate:Efn	Template:Flagcountry	IDM	Amplifiers, data converters, audio & video products, RF & microwave, sensors, MEMS
Qorvo	Template:Flagcountry	IDM	RF module, filters, Amplifiers, PMIC
Microchip	Template:Flagcountry	IDM	Microcontrollers and analog semiconductors
NXP	Template:Flagcountry	IDM	PMIC Media processor, MIFARE, LPC
MediaTek	Template:Flagcountry	Fabless	SoC, chipset, CPU, GPU, DSP
InfineonTemplate:Efn	Template:Flagcountry	IDM	Microcontrollers and power semiconductor devices
Bosch	Template:Flagcountry	IDM
STMicroelectronics	Template:Flagcountry/Template:Flagcountry	IDM	ASIC, Microcontrollers
Sony	Template:Flagcountry	IDM	Active-pixel sensor, NAND flash memory
ARM	Template:Flagcountry	Fabless	Instruction set architecture
AMD	Template:Flagcountry	Fabless	x86-64 CPU, GPU, motherboard chipset, SDRAM
Nvidia	Template:Flagcountry	Fabless	GPU
ON Semiconductor	Template:Flagcountry	IDM
UMC	Template:Flagcountry	Pure-play
Apple	Template:Flagcountry	Fabless	Apple silicon
IBM	Template:Flagcountry	Fabless	IBM Power microprocessors, z/Architecture
Mitsubishi Electric	Template:Flagcountry	IDM	Power semiconductor devices
Tower Semiconductor	Template:Flagcountry	IDM
Xilinx	Template:Flagcountry	Fabless	programmable logic device
SMIC	Template:Flagcountry	Pure-play
Wolfspeed	Template:Flagcountry	IDM	SiC
Nordic Semiconductor	Template:Flagcountry	Fabless	Bluetooth, Wifi, Low Power Cellular

Notes:

• Pure-play foundries Template:Ndash They specialize in foundry services. They may or may not offer design services to third parties, as well as mask (photomask) making, semiconductor packaging and testing services, which can also be outsourced to other companies. An example is TSMC, which offers design, testing and packaging services, TCE photomasks, which offers only mask making services, and ChipMOS, which offers only packaging and testing services.
• IDMs (integrated device manufacturers) Template:Ndash They may or may not offer foundry services.
• Fabless suppliers Template:Ndash They do not offer foundry services. They may or may not offer design services to third parties.

Device shipments

Semiconductor devices (Template:Estimation million manufactured units)<ref name="Texas">{{#invoke:citation/CS1|citation

CitationClass=web }}Template:Dead link</ref>
Year	Optoelectronics	Sensor / Actuator	MOSFET<ref name="computerhistory2018">{{#invoke:citation/CS1|citation	CitationClass=web }}</ref>
1960Template:Ndash2001	Template:?	Template:?	2,900,000,000,000,000
2002	23,164	1,654
2003	28,955	2,482
2004	38,056	3,310
2005	44,675	4,137
2006<ref name=":0">Template:Cite news</ref>	55,429	4,137
2007<ref name="ic2015"/>	67,839	4,136
2008	76,939	4,964
2009	91,003	4,964
2010	97,622	6,619
2011	110,031	8,273
2012	129,886	11,583
2013	131,541	14,064
2014Template:Ndash2015	Template:?	Template:?	{{#expr:13,000−2,900}},000,000,000,000
2016<ref name=":2">Template:Cite news</ref><ref name=":3">Template:Cite news</ref>	{{#expr:868,800*0.25}}	{{#expr:868,800*0.02}}
2017Template:Ndash2018	Template:?	Template:?
1960Template:Ndash2018	1,112,340+	87,699+	13,000,000,000,000,000

Integrated circuits

Integrated circuit chips (Template:Estimation million manufactured units)<ref name="Texas" />

Year	MOS memory	MPU / MCU	Analog	Logic	ASIC	ASSP	Total
1960Template:Ndash1991	Template:?	15,000<ref name="bloomberg" />	Template:?	Template:?	Template:?	Template:?	350,000<ref name="bloomberg">Template:Cite news</ref>
citation	CitationClass=web }}</ref>							3,706
1993<ref name="Smithsonian"/>	4,060
1994<ref name="Smithsonian"/>	4,938
1995<ref name="Smithsonian"/>	6,092
1996<ref name="Smithsonian"/>	6,206
1997	citation	CitationClass=web }}</ref>	Template:?	Template:?	Template:?	Template:?	Template:?	60,100<ref name="ic2015">Template:Cite news</ref>
1998Template:Ndash1999	Template:?	Template:?	Template:?	Template:?	Template:?	Template:?	Template:?
2000<ref name=":1">Template:Cite news</ref>	Template:?	Template:?	Template:?	Template:?	Template:?	Template:?	89,100
2001	Template:?	Template:?	Template:?	Template:?	Template:?	Template:?	Template:?
2002	9,100	6,619	24,819	11,582	2,482	23,992	78,594
2003	10,755	6,618	30,611	14,064	1,655	25,646	89,349
2004	13,237	9,100	33,092	14,064	1,654	33,092	104,239
2005	15,719	8,273	37,229	14,891	2,481	38,056	116,649
2006<ref name=":0" />	18,201	10,755	43,020	18,200	2,482	45,501	141,600
2007<ref name="ic2015" />	23,992	12,409	48,811	18,201	3,309	45,502	156,000
2008	25,646	12,410	49,639	18,200	1,655	47,156	154,706
2009	28,128	11,582	43,020	14,892	2,482	43,847	143,951
2010<ref name=":1"/>	33,919	16,546	57,084	19,028	1,654	57,911	189,800
2011	33,919	17,374	56,256	19,028	1,655	58,738	186,970
2012	34,747	17,373	57,084	17,373	1,655	57,083	185,315
2013	33,919	16,546	67,839	18,201	2,481	64,530	203,516
2014	Template:?	18,600<ref>Template:Cite news</ref>	Template:?	Template:?	Template:?	Template:?	Template:?
2015	Template:?	22,058<ref name="electronicspecifier">Template:Cite news</ref>	Template:?	Template:?	Template:?	Template:?	235,600<ref name=":1" />
2016<ref name=":2" /><ref name=":3" />	{{#expr:868,800*0.05}}	21,174<ref name="electronicspecifier"/>	{{#expr:868,800*0.15}}	{{#expr:868,800*0.06}}	Template:?	Template:?	{{#expr:377,000/1.101 round 0}}
2017	Template:?	25,797<ref name="electronicspecifier"/>	Template:?	Template:?	Template:?	Template:?	{{#expr:(417,600/1.108)+(217,100/1.062) round 0}}<ref name="prnewswire">Template:Cite news</ref>
2018	Template:?	Template:?	Template:?	Template:?	Template:?	Template:?	{{#expr:417,600+217,100}}<ref name="prnewswire"/>
1960Template:Ndash2018	356,879+	274,298+	635,804+	249,852+	25,645+	541,054+	4,043,926+

Discrete devices

Discrete devices (Template:Estimation million manufactured units)<ref name="discrete">{{#invoke:citation/CS1|citation

CitationClass=web }}</ref><ref name="Texas"/>
Year	Discrete transistors			Diode	Total
	Power	Small-signal	Total
1954Template:Ndash1956<ref name="Butrica">Template:Cite book</ref>	Template:?	Template:?	28	Template:?	28+
1957<ref name="Butrica" />	Template:?	Template:?	30	Template:?	30+
1958Template:Ndash1962	Template:?	Template:?	Template:?	Template:?	Template:?
1963<ref name="Butrica" />	Template:?	Template:?	303	Template:?	303+
1964Template:Ndash1965	Template:?	Template:?	Template:?	Template:?	Template:?
1966<ref name="Tariff">Template:Cite book</ref>	Template:?	Template:?	{{#expr:895.265+72.248 round 0}}	Template:?	{{#expr:895.265+72.248 round 0}}+
1967<ref name="Tariff" />	Template:?	Template:?	{{#expr:795.593+85.41 round 0}}	Template:?	{{#expr:795.593+85.41 round 0}}+
1968<ref name="Tariff" />	Template:?	Template:?	{{#expr:873.619+123.359 round 0}}	Template:?	{{#expr:873.619+123.359 round 0}}+
1969<ref name="Butrica" />	Template:?	Template:?	1,249	Template:?	1,249+
1970<ref name="Tariff" />	Template:?	Template:?	{{#expr:664.654+249.529 round 0}}	Template:?	{{#expr:664.654+249.529 round 0}}+
1971<ref name="Butrica" />	Template:?	Template:?	881	Template:?	881+
1972Template:Ndash2001	Template:?	Template:?	Template:?	Template:?	Template:?
2002	Template:?	Template:?	Template:?	Template:?	232,472
2003	Template:?	Template:?	Template:?	Template:?	245,708
2004	Template:?	Template:?	Template:?	Template:?	287,901
2005	Template:?	Template:?	Template:?	Template:?	290,382
2006<ref name=":0" />	Template:?	Template:?	Template:?	Template:?	321,820
2007<ref name="ic2015" />	Template:?	Template:?	Template:?	Template:?	356,566
2008	Template:?	Template:?	Template:?	Template:?	324,301
2009	Template:?	Template:?	Template:?	Template:?	289,555
2010	{{#expr:58,800/1.11 round −2}}<ref>Template:Cite news</ref>	Template:?	{{#expr:58,800/1.11 round −2}}+	Template:?	371,458
2011	45,000	110,000	{{#expr:45,000+110,000}}	143,000	{{#expr:143,000+110,000+4,000+45,000+54,000}}
2012	Template:?	Template:?	Template:?	Template:?	345,812
2013	44,000	103,000	{{#expr:44,000+103,000}}	146,000	358,000
2014	48,000	109,000	{{#expr:48,000+109,000}}	154,000	380,000
2015<ref name=":1" />	52,000	107,000	{{#expr:52,000+107,000}}	150,000	372,000
2016<ref name=":2" />	{{#expr:62,800/1.08/1.09 round −2}}	Template:?	53,300+	Template:?	{{#expr:868,800*0.44}}
2017	{{#expr:62,800/1.08 round −2}}	Template:?	58,100+	Template:?	58,100+
2018	62,800	Template:?	62,800+	Template:?	62,800+
1954Template:Ndash2018	416,200+	429,000+	851,451+	593,000+	5,041,398+

Sales

Manufacturers headquartered in the following places are the sales leaders in the pure-play foundry, IDM (integrated device manufacturing), fabless manufacturing and OSAT (outsourced semiconductor assembly and testing) sectors of the industry.<ref name="semiconductors"/>

Rank	Foundry	IDM	Fabless	OSAT
1	Template:Flagcountry	Template:Flagcountry	Template:Flagcountry	Template:Flagcountry
2	Template:Flagcountry	Template:Flagcountry	Template:Flagcountry	Template:Flagcountry
3	Template:Flagcountry	Template:Flagcountry	Template:Flagcountry	Template:Flagcountry
4	Template:Flagcountry	Template:Flagcountry	Template:Flagcountry	Template:Flagcountry
5	Template:Flagcountry	Template:Flagcountry	Template:Flagcountry	Template:Flagcountry

Manufacturers headquartered in the United States have fabrication plants across the world, including over 50% in the Americas, 39% in the Asia-Pacific region (including 9% in Japan), and 9% in Europe.<ref name="semiconductors"/>

See also

• Electronic design automation
• List of EDA companies
• List of semiconductor fabrication plants
• Semiconductor consolidation
• Semiconductor device fabrication
• Semiconductor fabrication plant
• Semiconductor Industry Association
• Semiconductor industry in India
• Semiconductor industry in Japan
• Semiconductor industry in Taiwan
• Semiconductor industry in China
• Semiconductor industry in South Korea
• Transistor count

External links

• "The Silicon Age: Trends in Semiconductor Devices Industry", 2022