Semiconductors are an integral part of the world economy. The semiconductor market in 2022 is estimated between $500 to $600 billion. However, that just includes the chips that are shipped and designed into electronic chiplets, 3D chip stacks, modules, boards and systems. It does not include the equipment used to manufacture chips, the design software used to develop those chips, the IP core components that go into those chips, or the foundries that manufacture those chips. Adding up semiconductor market revenue and the semiconductor supply chain that supports the semiconductor market, one is looking at a market that is quickly approaching a trillion dollar market.
The supply chain that directly supports the semiconductor market, and can be considered part of the semiconductor market, that is the foundry companies that manufacture the chips for the chip companies, the packaging, assembly and test companies that put on the finishing touches, the IP core companies that design the components used in those chips and the Electronic Design Automation companies that create the software needed to develop those chips are major segments. Chip design software accounts for well over $10 billion in annual revenue. Foundry, or chip manufactures account for an estimated $100 billion in annual revenue, IP cores or intellectual property comes in about $5 billion. The semiconductor equipment market, which provides manufacturing equipment to the foundries, the electronic device manufactures and those that test, package and assemble semiconductors is estimated at $115 billion. The market opportunity for those that assemble, test and package chips is in the order of $30 billion a year.
Adding it all up, and that does not include the metals, chemicals and materials suppliers, the semiconductor supply chain is about $360 billion, well over 50 percent of the $550 billion semiconductor market.