Europe Semiconductor Market Overview
- Till 2034, the market is aspired to enlarge at USD 256 Billion.
- Europe semiconductor market size was reached at USD 211 Billion over 2024.
- The market is springing up at a CAGR of 1.9%.
The materials which have conductivity between conductors and insulators are known as semiconductor materials. These are pure elements, such as silicon (Si) or germanium (Ga), or compounds such as gallium arsenide (GaAs) or cadmium selenide (CdSe). The market is driven by extension of smartphones, soaring purchasing demands for electronics, growing demand for semiconductors in many industries including automotive, electronics, and others, rising adoption of green semiconductors technologies due to consumer trend towards sustainability, and others.
Key Takeaways:
- Germany holds the largest share of the semiconductor market, primarily due to its strong automotive and industrial sectors, coupled with significant investments in research and development, and others.
Europe Semiconductor Market Drivers & Restraints
Key Drivers of Target Market:
Use of Semiconductor in Electronic Devices Helps in Market Increment
A semiconductor substance lies between the conductor and insulator. It controls and manages the flow of electric current in electronic equipment and devices. As a result, it is a popular component of electronic chips made for computing components and a variety of electronic devices, including solid-state storage.
- For instance, in January 2025, Tampere University, along with 11 other partners from various European research institutions and universities, has secured €24m to drive this semiconductor initiative. The newly funded project focuses on developing a state-of-the-art, cloud-based design platform tailored to the needs of European semiconductor chip designers.
Restraints:
Some Semiconductor Components are Complex or sophisticated which Can Obstruct Market Proliferation
Sophistication tends to be a problem in the semiconductor parts industry. Some components tend to be too complicated and can only be handled by experts. Also, the semiconductor part industry keeps evolving means that the components keep getting complicated. To make it even difficult most of the electronic devices heavily rely on these complex parts.
- Counterbalance Statements: Modular design approach, use of simulation tools, automation and AI-driven design, interdisciplinary collaboration, and others are solutions for the above problem.
Opportunities:
Semiconductor Industry is Pushing the Boundaries of Innovation
The semiconductor industry is poised to play an even more critical role in shaping the future of technology, owing to AI's push for change in the semiconductor landscape. Customization, advanced packaging, and innovation in power components will be some of the few trends, which unlocks opportunity in future. To meet these challenges, semiconductor companies must invest in cutting-edge materials, new manufacturing processes, and innovative chip architectures. Additionally, many organizations are investing in research sector for market growth.
- For instance, in February 2024, The Semiconductor Joint Undertaking (Chips JU) announced the launch of USD 225 (€216) million in calls for proposals to support research and innovation initiatives in the fields of semiconductors, microelectronics and photonics. This announcement follows a first round of calls for innovative pilot lines, announced in November 2023, which secured USD 1.73 (€1.67) billion in EU funding.
Europe Semiconductor Market Segmentations & Regional Insights
Component, type, node size, application, and country are dispersion whereupon market is apportioned.
Component
Refer to the component, the market is ranked into memory devices, logic devices, analog IC, MPU, sensors, and others. Logic devices dominates the Europe semiconductor market share, resulting from their importance in processing and controlling data in modern digital systems.
Type
The market derived from type is portioned out into intrinsic and extrinsic. The extrinsic segment are counted on to rule the target market as they offer better performance and are more adaptable.
Node Size
The targeted market, formulated on node size is segregated into 65nm, 40/45 nm, 32/28 nm, 22/20 nm, 16/14 nm, and others. The 16/14 nm segment held the massive share of the market. This is due to its importance for mainstream mobile and computing applications.
- For instance, in August 2023, TSMC, Robert Bosch GmbH, Infineon Technologies AG, and NXP Semiconductors N.V., announced a plan to jointly invest in European Semiconductor Manufacturing Company (ESMC) GmbH, in Dresden, Germany to provide advanced semiconductor manufacturing services. The planned fab is expected to have a monthly production capacity of 40,000 300mm (12-inch) wafers on TSMC’s 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technology.
Application
According to application segment, market is clustered into networking & communication, data centers, industrial, consumer electronics, automotive, and others. All over, the automotive segment held the largest market share due to the rising demand, widespread usage, and others.
- For instance, in September 2024, Valens Semiconductor, a leader in high-performance connectivity, announced that it has achieved three automotive design wins from leading European OEMs for its VA7000 MIPI A-PHY chipsets. The achievement is validation of Valens' position as a key supplier of ADAS connectivity solutions, and MIPI A-PHY's position as the industry's standard for next-generation sensor connectivity.
Europe Semiconductor Market Report Scope:
Attribute |
Details |
Market Size 2024 |
USD 211 Billion |
Projected Market Size 2034 |
USD 256 Billion |
CAGR Growth Rate |
1.9% (2024-2034) |
Base year for estimation |
2023 |
Forecast period |
2024 – 2034 |
Market representation |
Revenue in USD Billion & CAGR from 2024 to 2034 |
Regional scope |
Europe – Germany, U.K., France, Russia, Italy, Spain, Netherlands, and Rest of Europe |
Report coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
Segmentation:
By Component:
- Memory Devices
- Logic Devices
- Analog IC
- MPU
- Sensors
- Others
By Type:
- Intrinsic
- Extrinsic
By Node Size:
- 65nm
- 40/45 nm
- 32/28 nm
- 22/20 nm
- 16/14 nm
- Others
By Application:
- Networking & Communication
- Data Centers
- Industrial
- Consumer Electronics
- Automotive
- Others
By Region:
- Europe
- Germany
- U.K.
- France
- Russia
- Italy
- Spain
- Netherlands
- Rest of Europe
Europe Semiconductor Market Competitive Landscape & Key Players
ASML, INFINEON TECHNOLOGIES AG, Arm Limited, NXP Semiconductors, and among others are companies for semiconductor in Europe. These companies are integrating market growth schemes including new product launch, collaboration & partnerships, integration of advance technologies, investment and funding, and others.
List of Key Players in the Market:
Europe Semiconductor Market Recent News
- In January 2025, NXP Semiconductors N.V., announced that it has secured a €1 billion loan from the European Investment Bank (EIB) to advance the company’s RDI investments across its broad portfolio of semiconductor solutions. The €1 billion loan facility carries an approximate interest rate of 4.75% when drawn in dollar denominated tranches, under the current market conditions and has a duration of six years.
- In July 2024, The CHIPS of Europe project aims to tackle the worker shortfall in the semiconductor industry of the European Union (EU). Over the next four years, there will be a collaborative effort between industry and academia to enhance the appeal of study programs and job opportunities associated to semiconductors.
- In July 2024, The German federal government and the State of North-Rhine-Westphalia commit EUR 228.7 Million in funding to drive a new generation of chips developed by Black Semiconductor, a technology company specializing in graphene-based chips. The company has also secured EUR 25.7 million in equity funding led by Porsche Ventures and Project A Ventures, with participation from Scania Growth Capital, Capnamic, Tech Vision Fonds, NRW.BANK and other investors.
More Related Reports
Semiconductor Market
5G Semiconductor Solutions Market
Semiconductor Wafer Polishing and Grinding Equipment Market
Implantable Drug Device Market
Enteral Feeding Devices Market
Europe Semiconductor Market Company Profile
Company Name |
Nordic Semiconductor |
Headquarter |
Trondheim, Norway |
CEO |
Mr. Wollan |
Employee Count (2024) |
1,500 Employees |
FAQs
Europe Semiconductor Market Size was valued at USD 211 Billion in 2024 and is expected to reach USD 256 Billion by 2034 growing at a CAGR of 1.9%.
The market is segmented into component, type, node size, application, and country.
The market is segmented by countries Germany, U.K., France, Russia, Italy, Spain, Netherlands, and Rest of Europe. Germany is expected to dominate the market
The key players operating in the Europe Semiconductor Market include ASML, INFINEON TECHNOLOGIES AG, Arm Limited, NXP Semiconductors, STMICROELECTRONICS, BESI, SOITEC, TECHNOPROBE S.P.A., AIXTRON, X-FAB Silicon Foundries SE, Nordic Semiconductor, and ZEISS