Intellectual Property (IP):

Semiconductor intellectual property (IP) comprises pre-designed, reusable blocks of logic, functionality, or layout licensed to multiple vendors. These IP blocks serve as essential building blocks in integrated circuit (IC) design, accelerating development by eliminating the need to design every function from scratch. Licensees typically pay either an upfront fee or royalties based on production volume. By providing validated, ready-to-use components, semiconductor IP streamlines chip design and enables teams to focus on system-level innovation and differentiation. Key categories include processor, interface, and memory IP, all of which are vital for applications across consumer, automotive, and industrial sectors.

The global Semiconductor IP market was valued at USD 47.91 billion in 2024 and is projected to reach USD 75.22 billion by 2031, growing at a CAGR of 6.4% during the forecast period from 2024 to 2031, reflecting the increasing demand for scalable and cost-efficient design solutions in the semiconductor ecosystem [2–3].

Current key players in Semiconductor Chip IP [4, 5, 6, 7]: Arm Holdings Ltd. (UK), Synopsys, Inc. (US), Cadence Design Systems, Inc. (US), Imagination Technologies (UK), CEVA, Inc. (US), Lattice Semiconductor (US), Rambus (US), eMemory Technology Inc. (Taiwan), VeriSilicon (China), Achronix Semiconductor Corporation (US), Silicon Storage Technology, Inc. (US), Alphawave SEMI (UK), ARTERIS, Inc (US).

Fig-2: Semiconductor Intellectual Property (IP) market overview [7]

Electronic Design Automation (EDA):

Electronic Design Automation (EDA) [8–9] refers to a comprehensive suite of software tools and methodologies used by semiconductor engineers to design, simulate, verify, and prepare integrated circuits (ICs) for manufacturing. These tools are indispensable in managing the increasing complexity of modern chip design, automating critical processes such as schematic capture, layout design, functional verification, timing analysis, and physical implementation.

EDA solutions also enable the seamless integration of internal and third-party Intellectual Property (IP) blocks, supporting more efficient, scalable, and collaborative chip development workflows. As chip architectures grow more sophisticated, the dependence on EDA tools throughout the design lifecycle—from initial concept to final tape-out—has become increasingly vital.

According to the SNS Insider Report, the EDA market [10, 11, 12] was valued at USD 14.66 billion in 2023 and is expected to grow to USD 32.75 billion by 2032, registering a compound annual growth rate (CAGR) of 9.35% from 2024 to 2032. This growth is largely driven by breakthroughs in artificial intelligence (AI), machine learning (ML), and cloud-based design platforms, which are reshaping chip design by improving precision and scalability and reducing time to market.

Current key players in Semiconductor EDA [10]: Synopsys (Design Compiler, PrimeTime), Cadence Design Systems (Virtuoso, Allegro), Siemens EDA (Calibre, PADS), ANSYS (HFSS, RedHawk), Keysight Technologies (ADS, SystemVue), Zuken (CR-8000, E3.series), Altair Engineering (PollEx, HyperWorks), Autodesk (Fusion 360, Eagle), Altium (Altium Designer, CircuitStudio), Mentor Graphics (ModelSim, Questa), Silvaco (TCAD, SmartSpice), AWR Corporation (Microwave Office, Visual System Simulator), Magma Design Automation (Talc, Blast Fusion), Dassault Systèmes (3DEXPERIENCE, CATIA), National Instruments (Multisim, LabVIEW), ARM Holdings (Physical IP, CoreSight), Rambus (Design IP, Security IP), Xilinx (Vivado, ISE Design Suite), Intel (Quartus Prime, Pathfinder), Broadcom (IP Licensing, ASIC Design Services).

Fabless:

Fabless semiconductor companies [13] focus on the design, development, and marketing of integrated circuits (ICs), while outsourcing chip fabrication to specialized foundries. Unlike integrated device manufacturers (IDMs), fabless firms do not operate their own fabrication facilities, enabling them to direct resources toward innovation, R&D, and market expansion without the heavy capital investments required for manufacturing infrastructure.

Despite not owning fabs, these companies retain full ownership of their intellectual property and chip designs. They establish the technical specifications and quality standards that foundries must adhere to, ensuring high-performance and reliable products.

This asset-light model allows fabless companies [14] to remain agile, rapidly adapt to shifting market demands, and leverage cutting-edge manufacturing technologies from global foundry partners. As a result, they play a vital role in driving innovation and technological advancement across the semiconductor industry.

The global fabless semiconductor market [15] is projected to grow from USD 214.5 billion in 2024 to approximately USD 489 billion by 2034, reflecting a compound annual growth rate (CAGR) of 8.60%. In 2024, the Asia-Pacific region led the market with a 58.61% share, generating USD 125 billion in revenue. Within this region, China’s fabless market was valued at USD 43.62 billion and is expected to grow at a CAGR of 8.72% over the same period.

Fig-3: Fabless business model [16]

Top Fabless companies include Nvidia Corporation, Intel FPGA, Qualcomm Inc., Broadcom Inc., AMD, MediaTek Inc., Marvell Technology, Inc., Realtek Semiconductor Corporation, Novatek Microelectronics Corp., Cirrus Logic [17].

Design House:

A design house is a specialized service provider that offers chip design solutions, often serving as a crucial intermediary between fabless semiconductor companies and foundries. These firms play a key role in adapting and optimizing integrated circuit (IC) designs to meet the specific process requirements of manufacturing partners, with a strong emphasis on back-end design tasks such as physical layout, verification, and design for manufacturability (DFM).

Fig-4: Relationship overview of Design House with Fabless and Foundry [18]

Design houses focus on ensuring that chip designs developed by fabless companies are compatible with the target foundry’s capabilities, thereby facilitating a smooth and efficient handoff for mass production. While they contribute significantly to the manufacturability and performance of semiconductor devices, design houses typically do not own the intellectual property (IP) of the chips they work on. Instead, they operate on a project basis, offering deep technical expertise to support successful design transfers from concept to silicon. By leveraging their in-depth understanding of specific foundry technologies and process nodes, design houses enhance the effectiveness of the fabless business model, helping product developers reduce design cycles, lower costs, and improve production yields.

Although design houses often operate behind the scenes and may not have the same public visibility as fabless companies or foundries, they are integral to the semiconductor supply chain. Prominent players in this space include GlobalFoundries, Synopsys, Cadence Design Systems, Arm, Alchip Technologies, eMemory Technology, and Global Unichip Corporation, among others.

Fabless companies are product developers, while design houses are service providers, enabling those product developers to translate their designs into physical chips using external manufacturing facilities.

Integrated Device Manufacturers (IDMs):

Integrated Device Manufacturers (IDMs) are semiconductor companies that design, manufacture, and sell their own integrated circuit (IC) products. Unlike fabless companies, which outsource production to foundries, IDMs own and operate their fabrication facilities (fabs) and manage the entire semiconductor manufacturing process, from design to mass production.

This vertically integrated model provides IDMs with greater control over production timelines, quality assurance, and supply chain logistics. With both design and manufacturing in-house, IDMs can achieve faster iteration cycles, enhanced coordination between R&D and production, and potential cost efficiencies. This tight integration often results in a more synchronized approach to innovation, enabling IDMs to respond quickly to market demands and technological advancements.

Leading Integrated Device Manufacturers (IDMs) [23–24] are – Samsung Electronics, Intel Corporation, SK Hynix, Micron Technology, Texas Instruments, Infineon Technologies, STMicroelectronics, and NXP Semiconductors.

Foundries:

Semiconductor foundries are specialized manufacturing facilities dedicated to producing integrated circuits (ICs)—commonly known as chips—on behalf of other companies. Often referred to as the “factories” of the semiconductor industry, foundries play a pivotal role in the global semiconductor supply chain. They enable fabless companies, which focus solely on chip design, to manufacture their designs without the massive capital investment required to build and operate fabrication facilities. Unlike Integrated Device Manufacturers (IDMs), foundries do not design chips; they manufacture semiconductors exclusively based on the design specifications provided by their clients.

Foundries specialize in high-volume, high-precision chip fabrication, often utilizing cutting-edge process nodes such as 5nm, 3nm, or even sub-3nm technologies. Their focus is on delivering manufacturing excellence, yield optimization, and technology scalability to a diverse client base across consumer electronics, automotive, data center, and AI sectors.

The foundry business model is a pure-play manufacturing model, characterized by B2B Service Provider, Technology Licensing & Process Specialization, Economies of Scale, Tiered Client Relationships and Strategic Partnerships.

Fig-5: Foundry business model by Morris Chang [25]

Leading Semiconductor Foundries​ are [26–27] – Taiwan Semiconductor Manufacturing Company -TSMC (Taiwan), Samsung Foundry (South Korea), GlobalFoundries (USA), United Microelectronics Corporation- UMC (Taiwan), Semiconductor Manufacturing International Corporation – SMIC (China).

Other Notable Foundries: Hua Hong Semiconductor (China), Tower Semiconductor (USA), and Vanguard International Semiconductor Corporation – VIS (Taiwan).

Fig-6: Global Semiconductor Foundries Revenue Model [28].

Raw and Specialized Materials:

Semiconductor fabrication is highly dependent on both raw and specialized materials that enable the intricate processes involved in chip manufacturing [29]. Raw materials such as silicon, germanium, gallium arsenide, and indium phosphide serve as the foundational substrates for integrated circuits. In addition, specialized materials—such as dopants (e.g., boron, phosphorus, arsenic), conductive metals for interconnects, and insulating compounds like silicon dioxide and silicon nitride—are essential for defining electrical properties and ensuring device performance [30]. According to market data, the global semiconductor materials market was valued at USD 69.39 billion in 2024 and is projected to grow to USD 96.24 billion by 2032, registering a compound annual growth rate (CAGR) of 4.2% during the forecast period [31].

A critical subset of this market is the silicon wafer industry, which forms the backbone of chip fabrication. Valued at approximately USD 12 billion in 2023, this sector continues to evolve rapidly as demand for smaller, faster, and more power-efficient chips increases [32]. Advancements in wafer manufacturing technologies are essential to meet the stringent requirements of next-generation semiconductor devices. Moreover, the global semiconductor wafer market was valued at USD 20.23 billion in 2023 and is expected to rise to USD 32.57 billion by 2032, growing at a CAGR of 5.43% between 2025 and 2032 [33]. This growth underscores the escalating demand for high-purity, high-precision wafers across various applications.

Leading players in the silicon wafer manufacturing segment include WaferPro, SUMCO, Shin-Etsu, SK Siltron, and Siltronic AG [33].

Chemicals:

The semiconductor fabrication industry is heavily reliant on the specialty chemical sector, which supplies the critical high-purity materials required for manufacturing integrated circuits (ICs)[34]. These chemicals play a fundamental role in various fabrication stages, including etching, cleaning, deposition, and doping, all which demand precision, consistency, and contamination-free environments.

Specialty chemical companies are instrumental in meeting these requirements by developing advanced chemical formulations tailored specifically for semiconductor manufacturing processes. Notable players in this field include BASF SE, Dow Inc., JSR Corporation, Fujifilm Holdings Corporation, Merck KGaA, and Honeywell International Inc., each known for their expertise in producing semiconductor-grade materials.

According to industry data, the global semiconductor chemicals market was valued at USD 12.2 billion in 2023 and is projected to reach USD 21.9 billion by 2028, growing at a compound annual growth rate (CAGR) of 12.3% during the forecast period [35]. This strong growth is being driven by the rising demand for advanced electronic devices, which has significantly increased global semiconductor production. As fabrication technologies evolve to accommodate smaller nodes and more complex chip architectures, the demand for high-quality, ultra-pure chemicals continues to escalate.

Gases:

The semiconductor fabrication industry depends heavily on ultra-high-purity gases—both bulk and specialty—for critical manufacturing processes such as etching, deposition, and cleaning. These gases are essential for ensuring process precision and product quality in advanced chip production.

Leading global gas suppliers include Air Liquide, Air Products and Chemicals, Linde plc, Matheson Tri-Gas, Taiyo Nippon Sanso, SK Materials, American Gas Products, Electronic Fluorocarbons, Iwatani Corporation, Showa Denko K.K., and Messer Group. The sector demands significant technical expertise and capital investment to meet the stringent purity requirements of semiconductor manufacturing. The global semiconductor gases market was valued at USD 10.07 billion in 2023 and is expected to grow to USD 19.34 billion by 2032, at a CAGR of 7.5% [36]. Asia Pacific led the market with a 73.68% share in 2023, while the U.S. market is projected to reach USD 1.73 billion by 2032, driven by rising demand for advanced electronics and increased investment in domestic semiconductor capabilities.

Dry Vacuum Pumps:

Vacuum-based process systems are integral to semiconductor manufacturing, supporting critical upstream and downstream operations such as chemical vapor deposition (CVD), etching, and ion implantation. These systems rely on high-performance dry vacuum pumps to maintain the controlled environments essential for precision fabrication.

The global vacuum pump market was valued at USD 6.31 billion in 2024 and is projected to reach USD 10.08 billion by 2031, growing at a CAGR of 6.66% during the forecast period [37]. Key players in the dry vacuum pump industry [38] include Agilent Technologies, Alfa Laval, Atlas Copco, Becker Vacuum Pumps, DEKKER Vacuum Technologies, Ebara Corporation, Edwards Vacuum, Flowserve Corporation, Graham Corporation, Grundfos, KNF Neuberger, Leybold GmbH, Tuthill Corporation, ULVAC, and Welch Vacuum.

Abatement Systems:

Abatement systems, also known as exhaust abatement systems, are critical components in semiconductor fabrication (semi-fab) facilities. These systems neutralize and safely manage toxic, flammable, and environmentally hazardous gases generated during chip production, ensuring emissions comply with national regulations and protecting both human health and the environment [39–40]. The global semiconductor abatement systems market was valued at USD 1.13 billion in 2024 and is projected to reach USD 2.83 billion by 2033, growing at a CAGR of 10.8% during the forecast period [41].

Key players in this market [42] include Edwards Vacuum (Atlas Copco), Ebara Corporation, CS Clean Systems, DAS Environmental Expert, Ecosys Abatement, Nippon Sanso, Showa Denko, and Exentec.