Logic Integrated Circuits Market Size, Share, and Industry Analysis By Type (Programmable Logic ICs, Application-Specific Integrated Circuits (ASICs), Standard Logic ICs, Field-Programmable Gate Arrays (FPGAs), and Others), By Technology (Complementary Metal-Oxide-Semiconductor (CMOS), Bipolar, and BiCMOS), By Packaging (Surface Mount Technology (SMT), Through-Hole Technology (THT), and Chip-Scale Packaging (CSP)), By Application (Consumer Electronics, Automotive, Telecommunication, Industrial Equipment, Healthcare Devices, and Aerospace & Defense), and Regional Forecast, 2025-2032

The global logic integrated circuits market is driven by the rising demand in consumer electronics, automotive electronics, and telecommunications. Logic ICs (integrated circuits) play a vital role in microprocessors, data processing, and signal control, offering enhanced speed and efficiency across applications. According to OEC (The Observatory of Economic Complexity), in 2022, integrated circuits ranked as the third most traded product globally, achieving a total trade value of USD 961 billion. From 2021 to 2022, the exports of ICs increased by 7.31%, rising from USD 896 billion to USD 961 billion. Additionally, advancements in AI, IoT, and 5G increase the need for sophisticated ICs to support smart devices and automation technologies. For instance,

• September 2024: Tata Electronics, in collaboration with Taiwan's Powerchip Semiconductor Manufacturing Corporation, planned to build a semiconductor fabrication plant in Gujarat, India, with a USD 11.0 billion investment. The facility, capable of producing 50,000 wafers monthly, would focus on AI, automotive, and computing applications while boosting India's domestic chip supply.

Moreover, trends shaping the logic IC market include miniaturization of chips, integration of AI capabilities, and a shift toward energy-efficient designs. Furthermore, advanced packaging techniques such as 3D stacking and system-in-package solutions are gaining traction along with the growth of 5G and electric vehicles that continue to drive innovations in high-speed and high-performance ICs.

Impact of AI on the Logic Integrated Circuits Market

Artificial intelligence has increased the demand for specialized ICs that efficiently process large datasets and perform real-time analysis. This has accelerated the adoption of FPGAs and ASICs, which offer high-speed processing customized to AI workloads. As AI becomes more embedded in consumer and industrial applications, the need for optimized, AI-compatible logic ICs is expected to drive market growth. For instance,

• September 2024: TSMC made its advancements in 3D integrated circuit (IC) design, which enables efficient AI solutions by leveraging innovative packaging and chip stacking technologies. These advancements aim to optimize AI performance and energy efficiency in various applications.

Logic Integrated Circuits Market Driver

Growing Automotive Electronics Sector to Drive the Demand for Logic Integrated Circuits

The growing automotive electronics sector, particularly with the shift toward electric and autonomous vehicles, drives the demand for logic ICs. These vehicles require sophisticated ICs for processing sensor data, managing power systems, and executing safety features, making automotive sector a key growth driver. For instance,

• February 2024: Danfoss Power Solutions expanded its cartridge valve portfolio, integrating products from various brands into a unified lineup. The updated offering simplifies customer access with seamless options and enhanced design software for custom hydraulic circuit solutions in automotive applications.

Logic Integrated Circuits Market Restraint

High Manufacturing Costs and Continuity in Investments May Hamper Entry of Small Players

The use of logic ICs offers many advantages. However, challenges for the market include high manufacturing costs and supply chain disruptions, which cause delays and increase expenses.

The rapid evolution of technology necessitates significant investment in R&D, making it harder for smaller players to compete. Moreover, regulatory compliance and IP-related issues further constrain market expansion.

Logic Integrated Circuits Market Opportunity

Increased Adoption of AI, IoT, and 5G to Present Significant Market Opportunities

The market presents opportunities through increased adoption of AI, IoT, and 5G across various industries, driving the demand for more advanced logic ICs. Additionally, the rise of electric vehicles and automation opens new avenues for customized IC solutions. Moreover, emerging markets in the Asia Pacific also offer growth prospects, driven by expanding manufacturing and technological adoption. For instance,

• October 2024: Qualcomm and STMicroelectronics collaborated to develop and manufacture system-on-chip (SoC) solutions for wireless IoT applications, combining Qualcomm's IoT expertise with STMicroelectronics' semiconductor capabilities. The partnership aimed to enhance SoC performance, efficiency, and connectivity for IoT devices.

Segmentation

By Type	By Technology	By Packaging	By Application	By Geography
Programmable Logic ICs Application-Specific Integrated Circuits (ASICs) Standard Logic ICs Field-Programmable Gate Arrays (FPGAs) Others	Complementary Metal-Oxide-Semiconductor (CMOS) Bipolar BiCMOS	Surface Mount Technology (SMT) Through-Hole Technology (THT) Chip-Scale Packaging (CSP)	Consumer Electronics Automotive Telecommunication Industrial Equipment Healthcare Devices Aerospace & Defense	North America (U.S., Canada, and Mexico) Europe (U.K., Germany, France, Spain, Italy, Russia, Benelux, Nordics, and Rest of Europe) Asia Pacific (Japan, China, India, South Korea, ASEAN, Oceania and Rest of Asia Pacific) Middle East & Africa (Turkey, Israel, South Africa, North Africa, and Rest of Middle East & Africa) South America (Brazil, Argentina, and Rest of South America)

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends, and Opportunities


• Business Strategies Adopted by Key Players


• Impact of AI on the Global Logic Integrated Circuits Market


• Consolidated SWOT Analysis of Key Players

Analysis by Type

Based on type, the market is divided into programmable logic ICs, application-specific integrated circuits (ASICs), standard logic ICs, field-programmable gate arrays (FPGAs), and others.

The ASICs segment dominates the global market due to their customized solutions for specific applications, which deliver high performance and efficiency in areas such as automotive and industrial automation. Furthermore, their ability to meet customized needs across sectors gives them a competitive advantage over general-purpose ICs.

The FPGAs segment is expected to grow rapidly due to their flexibility and re-programmability, making them ideal for AI and data center applications. The shift toward AI-driven workloads favors FPGAs for their adaptability to changing processing needs. For instance,

• June 2023: AMD launched the Versal Premium VP1902 adaptive system-on-chip, an FPGA-based adaptive compute acceleration platform. It aims to enhance performance across data centers and applications in AI, networking, and signal processing.

Analysis by Technology

Based on technology, the logic integrated circuits market is subdivided into complementary metal-oxide-semiconductor (CMOS), bipolar, and BiCMOS.

The CMOS segment holds the largest market share due to its low power consumption and cost-effectiveness, making it widely adopted in consumer electronics and other applications. Its scalability for complex integration further reinforces its dominance. The segment is also projected to depict the highest growth rate, driven by ongoing innovations in semiconductor manufacturing and increasing use in AI and 5G applications, where efficiency is crucial. For instance,

• November 2023: Onsemi started in-house production of CMOS image sensors, moving away from outsourcing due to past supply chain issues. The production is split between New York and Idaho facilities.

Analysis by Packaging

Based on packaging, the market is fragmented into surface mount technology (SMT), through-hole technology (THT), and chip-scale packaging (CSP).

The surface mount technology (SMT) segment holds the highest share of the market due to its compatibility with automated manufacturing and high-volume production, reducing costs and enhancing assembly efficiency. SMT's widespread use in consumer electronics further boosts its dominance.

The chip-scale packaging (CSP) segment is expected to grow at the fastest pace due to the trend of miniaturization in electronics, enabling smaller and more compact device designs. Additionally, the demand for wearable and portable devices drives the adoption of CSP. For instance,

• October 2024: Amkor Technology and TSMC signed a memorandum of understanding to enhance their partnership by establishing advanced packaging and testing capabilities in Arizona. This collaboration aimed to boost the semiconductor ecosystem, leveraging technologies such as TSMC's Integrated Fan-Out and CoWoS to serve their customers better.

Analysis by Application

Based on application, the market is fragmented into consumer electronics, automotive, telecommunication, industrial equipment, healthcare devices, and aerospace & defense.

The consumer electronics segment holds the largest market share owing to the high demand for smartphones, tablets, and other digital devices that rely heavily on ICs for performance and power management. The constant upgrade cycle in this sector sustains high consumption of logic ICs.

The automotive segment is expected to grow at the highest CAGR over the forecast period due to the increasing integration of electronics in electric and autonomous vehicles. Moreover, advanced driver assistance systems and in-vehicle infotainment further accelerate the demand for specialized logic ICs. For instance,

• February 2024: Infineon launched its 750V G1 CoolSiC MOSFET family, designed for enhanced efficiency in automotive and industrial applications. This product line addresses a growing demand for power density, featuring advanced thermal management and robust performance capabilities.

Regional Analysis

Based on region, the market has been studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

The Asia Pacific holds the highest market share. It is expected to remain dominant, driven by significant semiconductor manufacturing capabilities in countries such as China, South Korea, and Japan. Additionally, the high demand for consumer electronics and government support for local chip production boosts market growth. The automotive industry's rapid expansion also drives the market growth. For instance,

• In April 2024, Japan approved USD 3.9 billion in subsidies for Rapidus Corporation to support its plans to mass produce advanced 2nm logic chips in Hokkaido by 2027. This funding aimed to strengthen Japan's semiconductor sector amid global supply chain challenges and competition.

In Europe, the market growth is supported by the automotive industry's shift toward electric and autonomous vehicles, which require advanced logic integrated circuits. The region's focus on Industry 4.0 and automation in industrial applications further drives product demand. Moreover, government investments in semiconductor research and development activities and green technology also bolster the market growth.

The North America market is characterized by strong demand for AI and cloud computing applications, with the U.S. leading in R&D activities in the semiconductor sector. The market growth is also supported by significant advancements in telecommunications, including 5G networks. Furthermore, the region's emphasis on developing AI and IoT technologies is expected to sustain the demand for high-performance logic ICs. For instance,

• In March 2024, Intel announced a USD 2.0 billion initiative to support U.S. semiconductor manufacturing through the CHIPS Act, aimed at fostering innovation and creating jobs. This funding enhanced domestic chip production capabilities, ensuring long-term competitiveness.

Key Players Covered

The global logic integrated circuits market is fragmented, with the presence of a large number of group and standalone providers.

The report includes the profiles of the following key players:

• Intel Corporation (U.S.) 


• Texas Instruments Inc. (U.S.) 


• Broadcom Inc. (U.S.) 


• Infineon Technologies AG (Germany) 


• STMicroelectronics N.V. (Switzerland) 


• Renesas Electronics Corporation (Japan) 


• NXP Semiconductors N.V. (Netherlands) 


• Analog Devices, Inc. (U.S.) 


• ON Semiconductor Corporation (U.S.) 


• Microchip Technology Inc. (U.S.) 


• Maxim Integrated Products, Inc. (U.S.) 


• Qualcomm Inc. (U.S.) 


• Samsung Electronics Co., Ltd. (South Korea) 


• Toshiba Corporation (Japan) 


• Marvell Technology Group Ltd. (U.S.)

Key Industry Developments

• July 2024: Flex Logix enhanced its AI accelerators by using embedded FPGA technology to reduce memory bandwidth requirements up to 16 times, supporting new data representations and efficient operations. The solution aimed to improve AI performance, particularly in edge vision applications and cloud computing.


• January 2023: Siemens launched the Questa Verification IQ software, designed to enhance integrated circuit verification by streamlining collaboration and project visibility using AI-driven data analytics. The solution integrates with Polarion Requirements to automate data capture throughout the project lifecycle.