Logic Semiconductor Market Driven by Rising Demand for Advanced Computing

The global logic semiconductor market size is calculated at USD 147.88 billion in 2025 and is forecasted to reach around USD 231.38 billion by 2034, accelerating at a CAGR of 5.10% from 2025 to 2034. The North America market size surpassed USD 67.54 billion in 2024 and is expanding at a CAGR of 5.21% during the forecast period. The market sizing and forecasts are revenue-based (USD Million/Billion), with 2024 as the base year.

Last Updated : 24 Jul 2025  |  Report Code : 6450  |  Category : Semiconductor and Electronic   |  Format : PDF / PPT / Excel

List of Contents

  • Last Updated : 24 Jul 2025
  • Report Code : 6450
  • Category : Semiconductor and Electronic

Logic Semiconductor Market Size and Forecast 2025 to 2034

The global logic semiconductor market size accounted for USD 140.7 billion in 2024 and is predicted to increase from USD 147.88 billion in 2025 to approximately USD 231.38 billion by 2034, expanding at a CAGR of 5.10% from 2025 to 2034. The market growth is attributed to the rising integration of AI-enabled logic chips across automotive, consumer electronics, and industrial applications, enabling real-time decision-making and intelligent automation.

Logic Semiconductor Market Size 2025 to 2034

Logic Semiconductor Market Key Takeaways

  • In terms of revenue, the global logic semiconductor market was valued at USD 140.7 billion in 2024.
  • It is projected to reach USD 231.38 billion by 2034.
  • The market is expected to grow at a CAGR of 5.1% from 2025 to 2034.
  • North America dominated the global logic semiconductor  market with the largest share of 48% in 2024.
  • Asia Pacific is expected to grow at a notable CAGR from 2025 to 2034.
  • By product type, the microcontrollers (MCUs) segment held the major market share in 2024.
  • By product type, the microprocessors (uPs) segment is projected to grow at a CAGR between 2025 and 2034.
  • By process node, the mature node segment contributed the biggest market share in 2024.
  • By process node, the advanced nodes segment is expected to expand at a significant CAGR between 2025 and 2034.
  • By end-user industry, the consumer electronics segment led the market in 2024.
  • By end-user industry, the automotive segment is expected to grow at a significant CAGR over the projected period.
  • By design type, standard cell/SoC platforms generated the major market share in 2024.
  • By design type, the FPGA/SoP segment is expected to grow at a notable CAGR from 2025 to 2034.

Impact of Artificial Intelligence on the Logic Semiconductor Market

Artificial Intelligence is greatly boosting advancement and need in the logic semiconductor industry. Semiconductor companies have now started to develop dedicated AI accelerators and other reconfigurable logic platforms, such as FPGAs and custom ASICs, in order to fulfill these performance requirements. Furthermore, the chipmakers also apply AI in the end-use products but also internally, in optimizing chip design processes, achieving greater accuracy in layout masks, and forecasting likely regions of failure in the manufacturing process.

U.S. Logic Semiconductor Market Size and Growth 2025 to 2034

The U.S. logic semiconductor market size was exhibited at USD 47.28 billion in 2024 and is projected to be worth around USD 79.11 billion by 2034, growing at a CAGR of 5.10% from 2025 to 2034.

U.S. Logic Semiconductor Market Size 2025 to 2034

Why Was North America the Core Region for Logic Semiconductor Market Dominance in 2024?

North America led the logic semiconductor market, capturing the largest revenue share in 2024, accounting for approximately 45% of the global market share, due to strong design innovation platforms, ownership of intellectual property, and hyperscale cloud penetration. Intel, AMD, NVIDIA, and Qualcomm have beefed up their SoC and GPU solutions portfolio dramatically to address AI, edge computing, and acceleration in servers.

As of 2024, in North America, according to the SIA, the number of patents produced by North American companies in advanced logics subsector was the largest, indicating major investments in R&D. The U.S. CHIPS and Science Act enabled the capital growth in Arizona, Texas, and New York with the domestic fabs, such as Intel Foundry Services and GlobalFoundries simulating the yield of advanced logic nodes. Giant corporations Microsoft, Google, Amazon Web Services, and Meta made a significant investment in bespoke AI chips, which contributed to the growth in demand for bespoke logic semiconductors in this region. (Source: https://www.semiconductors.org)

Logic Semiconductor Market Share, By Region, 2024 (%)

Asia Pacific is anticipated to grow at the fastest rate in the market during the forecast period, supported by a CAGR approaching 18%, as the rapid pace of technological infrastructure development in China, Taiwan, Korea, and Southeast Asia. In 2024, the Taiwan Semiconductor Industry Association (TSIA) announced that the region expanded logic chip production by major foundries. That produced sub-5nm process nodes serving external clients in the international market, including Apple, AMD, and Qualcomm. (Source: https://www.roc-taiwan.org)

In 2024, the South Korean Ministry of Trade, Industry, and Energy emphasized an additional investment in AI semiconductor production and packaging by the government, industry, and publicly owned companies. The China Semiconductor Industry Association (CSIA) reported that domestic vendors upped the pace of achieving self-sufficient EDA tools, IP cores, logic design, and fabs, such as SMIC, lifting capacity to meet domestic demand. Furthermore, the favourable policy incentives and manufacturing capabilities of Asian countries further fuel the market in the coming years.  (Source: https://www.reuters.com)

Earlier in 2025, the Union Cabinet of India, chaired by Prime Minister Narendra Modi, approved the construction of three new semiconductor units under the ₹76,000 crore Development of Semiconductors and Display Manufacturing Ecosystem initiative. All three are slated to begin construction within 100 days. Additionally, the construction of Micron’s fab in Sanand, Gujarat, sanctioned in June 2023, is progressing rapidly, helping to form a thriving semiconductor hub in the region. (Source: https://www.pib.gov.in)

Market Overview

The Logic Semiconductor Market consists of integrated circuits (ICs) that execute logical operations and manage data flow in computing systems. Logic semiconductors form the core computational building blocks of modern electronics — including CPUs, GPUs, FPGAs, ASICs, and SoCs — and are essential to everything from smartphones and PCs to automotive ECUs, AI accelerators, and IoT devices.

The soaring demand for edge AI, autonomous systems, and real-time data processing is growing as the logic semiconductor market, within the automotive, consumer electronics, and industrial automation sectors. The chips play the role of the brains of smart systems by performing functions, such as executing instructions, processing digital signals, and facilitating connections among sensors. In 2024, the IEEE noted that logic ICs, including built-in AI, will be needed to scale edge computing and robotics. Furthermore, the data infrastructure power and performance demands are anticipated to grow with the addition of semiconductors in-car or in the phone, and in the data infrastructure.(Source: https://ieeexplore.ieee.org)

Logic Semiconductor Market Growth Factors

  • Rising Demand for Gamified Workouts: The growing popularity of immersive, game-like fitness experiences is driving user engagement across connected home gyms and fitness apps.
  • Boost in Corporate Wellness Programs: Increasing employer investment in interactive fitness solutions is fuelling workplace health initiatives and reducing long-term healthcare costs.
  • Expansion of Hybrid Fitness Models: The shift toward combining virtual and in-person workout formats is propelling the need for adaptive, interactive platforms.
  • Growing Integration with Smart Home Ecosystems: Seamless connectivity with IoT-enabled devices and voice assistants is enhancing user convenience and driving smart fitness adoption.

Market Scope

Report Coverage Details
Market Size by 2034 USD 231.38 Billion
Market Size in 2025 USD 147.88 Billion
Market Size in 2024 USD 140.7 Billion
Market Growth Rate from 2025 to 2034 CAGR of 5.10%
Dominating Region North America
Fastest Growing Region Asia Pacific
Base Year 2024
Forecast Period 2025 to 2034
Segments Covered Product Type, Process Node, End-User Industry, Design Type, and Region
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Market Dynamics

Drivers

How Is AI Integration Accelerating Growth in the Logic Semiconductor Market?

Increasing integration of artificial intelligence and machine learning into data centers, consumer electronics, and autonomous systems is projected to drive the logic chips market. The technologies used to store AI models have high computational throughput and parallelism that forces the manufacturers to produce advanced logic blocks with faster processing cores and data paths. The designers currently turn to the enhancement of intra-chip efficiencies and the integration of AI accelerators into SoCs. This trend promotes faster innovation and also generates increasing revenue streams in edge computing, cloud, and automotive AI.  

  • According to the 2025 report by the Semiconductor Industry Association (SIA), logic products generated $212.6 billion in sales in 2024, ranking as the highest-grossing product category in the global semiconductor market. 

The extensive use of AI structures in imaging, voice recognition, and robotics is helping further boost logic chip applications in all industries. Logic products were at the forefront of worldwide semiconductor unit shipments in 2024, as much of the demand for those products derives from AI-centric industries. Moreover, the development of neuromorphic and in-memory compute has redefined logic chip design approaches to accommodate next-generation AI inference workloads, thus facilitating the market growth.(Source: https://www.semiconductors.org)

Restraint

Hamper Supply Chain Disruptions and Geopolitical Tensions 

Hamper supply chain disruptions and rising geopolitical tensions are anticipated to challenge production timelines, which further hinder the logic semiconductor sector. The manufacturers incline to a global structure of supply network of wafer fabrication, packaging, and testing. Export control on advanced chipmaking equipment and key materials, especially between the U.S. and China, curtails cross-regional technologies transfer and retard equipment upgrade. Furthermore, such dynamics most probably lead to longer lead times, flexibility, and the cost of producing logic semiconductors in general, which further contributes to hampering the market.

Opportunity

How Is the Complexity of Consumer Electronics Reshaping the Logic Semiconductor Market?

The growing sophistication of consumer electronics, ranging from gaming consoles and AR/VR headsets to smart TVs and multifunctional smartphones, is anticipated to create immense opportunities for the logic chips market. Several sensors, high graphics, and fast connectivity have been incorporated into devices that depend on accurate and strong logic processing units. Appropriate logic architectures optimized with respect to size, cost, and performance are developed by manufacturers. The seasonal spikes and reduced product cycles only fuel chip innovations further, and logic semiconductors become a part and parcel of differentiating a product and making it competitive in the consumer-tech market.

According to reports by the Japan Electronics and Information Technology Industries Association (JEITA) in 2024, logic components comprise the dominant share of integrated circuits in higher-end consumer products, spurred by the proliferation of embedded AI and graphics-intensive operations.  

Apple and Samsung Electronics rolled out new chipsets with logic cores specialized to multitasking, machine learning, and immersive media functionality. Furthermore, the logic semiconductors currently major percentage of real-time processing responsibilities of the current smartphones and wearable devices, thus reflecting the sustained and growing market growth in this sector. (Source: https://www.jeita.or.jp)

Product Type Insights

Which Product Type Drove the Logic Semiconductor Market Leadership in Recent Years?

The microcontrollers (MCUs) segment dominated the logic semiconductor market in 2024, occupying about 35 percent of the total market share, due to the large number of automotive, industrial automation, and consumer electronic applications. Manufacturers were incorporating low-power MCUs in an increasing number of embedded systems to control functions in electric vehicles and home appliances, and factory automation equipment.

With the growth in electrification of automobiles, automotive OEMs were using MCUs to enable important functionalities in the cars and trucks, including battery management, infotainment, and advanced driver assistance systems (ADAS). Shipments of MCUs are expected to increase greatly under the influence of increasing automotive electronics content of vehicles. In 2025, JEDEC also announced revised standards on ultra-low-power MCUs in the same year, with a focus on AI integration and wireless connectivity, further demonstrating their applicability in multifunction devices. Furthermore, the MCU design activity increased on 28nm and 22nm nodes in 2024 as the focus was set on better performance, thus further fuelling their demand.(Source: https://www.jedec.org)

The GPUs & AI accelerators segment is expected to grow at the fastest CAGR in the coming years, as artificial intelligence training and inference mushroom within data centers, edge computing, and autonomous systems. These performance-monster chips are meant to carry out sophisticated parallel workloads. They are becoming an indispensable component of deep learning, computer vision, and large language model operations. Furthermore, the on-chip memory integration and the interconnect protocols further heightened the logic devices' capabilities and their demand in the coming years.

Process Node Insights

Why Did Mature Nodes Remain the Backbone of the Logic Semiconductor Market?

Mature nodes segment held the largest revenue share in the logic semiconductor market in 2024, accounting for approximately 60% of total market share, as they are economical to produce and are able to be mass-produced. These nodes are important to microcontrollers (MCUs), analog-mixed signal logic, and power management ICs that are core functions of automotive electronics, industrial control, and consumer devices. GlobalFoundries and GlobalFoundries remained dedicated to supplying significant capacity to mature nodes in 2023 as demanded strongly by several sectors worldwide, where high reliability features are valued more than raw performance outputs. These nodes are scalable, which makes them suitable for such applications, thus further facilitating the segment growth. (Source: https://gf.com)

The advanced nodes segment is expected to grow at the fastest rate/fastest CAGR in the coming years, owing to the growing need for performance and power efficiency requirements in AI, high-performance computing, and mobile applications. Such advanced nodes allow increasing the density of transistors and switching speed, which is essential to CPUs, GPUs, and custom AI accelerators. Additionally, the new standards of interconnect and packaging to facilitate the integration of dense logic at these nodes strengthen their market growth.

End-User Industry Insights

How Did Consumer Electronics Secure the Largest Share in the Logic Semiconductor Market?

Consumer electronics segment dominated the logic semiconductor market in 2024, accounting for approximately 40% of the total market share, due to the increasing popularity of smartphones, tablets, smart TVs, wearable devices, and Internet of Things (IoT) devices, among others. Application processing, connectivity, graphics processing, and sensor integration were being supported by logic chips. Among some of the leading technology companies, such as Apple, Samsung, and MediaTek, greater complexity in system-on-chip (SoC) designs was further introduced, having multiple logic parts on a tiny die to accommodate AI, 5G, and advanced display. (Source: https://www.semiconductors.org)

In 2023, the Semiconductor Industry Association (SIA) observed that consumer electronics was the main demand point of logic ICs, especially devices with real-time video, voice control, and AI inside. In 2024, the Japan Electronics and Information Technology Industries Association (JEITA) also reported that the market for wearable devices and smart home devices was growing fast, which provided further pressure on low-power logic processors. The volume of logic chips was driven by growth in global tablet shipments as a result of hybrid work or education, which added to their demand. Furthermore, the manufacturers of smart TVs in Japan and Korea adopted the SoCs featuring AI to enhance upscaling, thus further propelling the segment in the coming years. (Source: https://www.jeita.or.jp)

The automotive segment is expected to grow at the fastest rate in the coming years, owing to the advanced driver-assistance systems (ADAS), electric vehicles (EVs), and in-vehicle infotainment as key categories and a compound growth rate of nearly 25%. Manufacturers involve MCUs, powertrain SoCs, and AI-enhanced vision processors in automating, energy management, and safety functions.

In 2024, the demand for automotive-grade logic elements has seen a significant increase, mainly regarding 77GHz radar systems, battery control units, and domain controllers. Tesla, Hyundai, and BYD made an expansion of employing the AI-centric logic chips in automotive features, namely, autonomous driving. The 2024 road map of digital mobility, elaborated by the European Commission according to its next-generation vehicle, demands heavy integration of advanced logic, which will meet edge processing, connectivity, and real-time data processing demands. Furthermore, the New logic platforms meant to promote ISO 26262 compliance and Level 3 autonomous driving systems functional safety are launched by STMicroelectronics and Infineon. (Source:https://transport.ec.europa.eu)

Design Type Insights

What Made Standard Cell / SoC Platforms the Foundation of the Logic Semiconductor Market?

Standard cell/SoC platforms segment held the largest revenue share in the logic semiconductor market in 2024, due to their flexibility in integrating complex logic functions, embedded memory, analog logic, and specialized accelerators on a single chip. This form of design allowed substantial degrees of customization; thus was well suited to smartphones, consumer electronic systems, and data center processors. Furthermore, TSMC and Samsung Foundry increased the creation of 3nm and 5nm SoCs in 2024 as clients accumulated the requirement to get silicon with functions and portability, further boosting the market.

The FPGA/SoP segment is expected to grow at the fastest CAGR in the coming years, owing to the need to have reconfigurable computing, reduced latency, and higher package-level integration. Additionally, Intel via its PSG business, AMD via Xilinx, and Lattice Semiconductor have added FPGAs to fit applications in telecom, automotive, and aerospace, thus creating demand for this type of technology in the coming years.

Logic Semiconductor Market Companies

Logic Semiconductor Market Companies
  • Intel
  • TSMC
  • Samsung Foundry
  • Nvidia
  • AMD
  • Qualcomm
  • Broadcom
  • MediaTek
  • NXP Semiconductors
  • Infineon Technologies
  • STMicroelectronics
  • Renesas Electronics
  • Microchip Technology
  • Xilinx (AMD)
  • Marvell Technology
  • Analog Devices
  • Texas Instruments
  • Broadcom
  • Huawei HiSilicon, and
  • Graphcore

Recent Development

  • In April 2025, Taiwan Semiconductor Manufacturing Company (TSMC) (TWSE: 2330, NYSE: TSM) introduced its latest advanced logic technology, A14, during the North America Technology Symposium. Marking a significant leap beyond its industry-leading N2 process, A14 is designed to enable faster, more energy-efficient computing, particularly in AI workloads. TSMC anticipates A14 to significantly elevate smartphone performance by strengthening on-device AI features. Although mass production is targeted for 2028, TSMC confirmed that A14’s development is already ahead of schedule in yield performance. (Source: https://pr.tsmc.com)
  • In January 2025, according to SEMI’s World Fab Forecast, the global semiconductor industry is set to witness the launch of 18 new fab construction projects 2025. These include 15 new 300mm and three new 200mm facilities. The Americas and Japan lead with four projects each, followed by China and Europe & the Middle East with three each. Taiwan, Korea, and Southeast Asia are also part of this expansion, with at least one project each expected to break ground during the year. (Source: https://www.semi.org)
  • In May 2025, in a boost to its domestic chip manufacturing ambitions, India approved its sixth semiconductor facility, a collaboration between HCL and Foxconn, under the India Semiconductor Mission. According to official government sources, five additional units are already under advanced stages of construction. The government continues to seek international investments to develop a robust ecosystem that includes fabs, ATMP units, and design infrastructure. (Source: https://www.india-briefing.com)
  • In April 2025, TSMC reconfirmed its commitment to AI-focused innovation at its North America symposium by emphasizing the importance of the new A14 logic platform. While building on the capabilities of its N2 process—set to begin volume production in late 2025—the A14 platform is engineered to optimize power efficiency and computing speed. TSMC’s momentum reflects its growing market dominance, backed by robust ~11% YoY revenue growth and a market cap nearing $42 billion.(Source: https://ir.appliedmaterials.com)

(Source: https://in.investing.com)

Latest Announcements by Industry Leaders

  • In June 2025, Announcement - Rapidus Corporation, a manufacturer of advanced logic semiconductors, has announced a strategic collaboration with Siemens Digital Industries Software focused on semiconductor design and manufacturing processes for the 2nm generation. Rapidus is dedicated to advancing the co-optimization of manufacturing and design and is committed to providing a design environment that dramatically speeds up the realization of customer needs for next-generation semiconductors. Our collaboration with Siemens will embody this mutual optimization for our Design Manufacturing Co-Optimization (DMCO) concept. Rapidus, as a state-of-the-art semiconductor foundry, will dramatically shorten the time to tape-out by achieving MFD for the 2nm gate-all-around process," said Dr. Atsuyoshi Koike, CEO of Rapidus. (Source: https://www.prnewswire.com)

Segments Covered in the Report

By Product Type

  • Microcontrollers (MCUs) 
    • Low-power controllers in automotive, industrial, and consumer 
  • Microprocessors (uPs) 
    • CPUs for PCs, servers, and networking 
  • GPUs & AI Accelerator 
    • Dedicated for AI training/inference, graphics 
  • Field-Programmable Gate Arrays (FPGAs) 
    • Reconfigurable logic in datacom, 5G, aerospace 
  • Digital Signal Processors (DSPs) 
    • Audio, video, comms, sensor processing 
  • Application-Specific ICs (ASICs) 
    • Custom logic for hyperscale, crypto, mobile SoCs 

By Process Node

  • Mature Nodes (>28 nm) 
    • Cost-efficient for MCUs, power, and analog-mixed logic 
  • Advanced Nodes (<7 nm) 
    • High-performance CPUs, GPUs, AI chips (5 nm, 3 nm) 
  • Intermediate Nodes (7–28 nm) 
    • Mainstream SoCs, FPGA families 

By End-User Industry

  • Consumer Electronics 
    • Smartphones, tablets, TVs, wearables 
  • Data Centers & Cloud 
    • Servers, AI accelerators, network processors 
  • Automotive (Including ADAS/EV) 
    • MCU, powertrain SoCs, vision processors 
  • Industrial & IoT 
    • PLCs, sensor hubs, factory automation 
  • Telecommunications 
    • 5G baseband processors, networking ASICs 

By Design Type

  • Standard Cell / SoC Platforms  
    • Highly integrated logic with embedded memory 
  • Full-Custom & Semi-Custom ASICs 
  • FPGA / SoP (System on Package) 

By Region

  • North America 
  • Europe 
  • Asia Pacific 
  • Latin America 
  • Middle East & Africa 

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Frequently Asked Questions

The logic semiconductor market size is expected to increase from USD 140.7 billion in 2024 to USD 231.38 billion by 2034.

The logic semiconductor market is expected to grow at a compound annual growth rate (CAGR) of around 5.10% from 2025 to 2034.

The major players in the logic semiconductor market include Intel, TSMC, Samsung Foundry, Nvidia, AMD, Qualcomm, Broadcom, MediaTek, NXP Semiconductors, Infineon Technologies, STMicroelectronics, Renesas Electronics, Microchip Technology, Xilinx (AMD), Marvell Technology, Analog Devices, Texas Instruments, Broadcom, Huawei HiSilicon, and Graphcore.

The driving factors of the logic semiconductor market are the increasing integration of artificial intelligence and machine learning into data centers, consumer electronics, and autonomous systems is projected to drive the logic chips market.

North America region will lead the global logic semiconductor market during the forecast period 2025 to 2034.

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