North America Logic Semiconductor Market - Forecasts from 2022 to 2027

The North American logic semiconductor market is projected to grow at a CAGR of 3.78% during the forecast period to reach US$32.693 billion by 2027, from US$25.209 billion in 2020. Logic semiconductors are used to assess and control the electronic devices' operation by processing digital data. Small microelectronic circuits, also known as logic gates, are commonly used to construct digital circuits to produce combinational logic. Such logic chips could be found in almost all digital products, like mobiles and arithmetic logic units. Logic semiconductors are heavily used in the automotive and electronic industries. Moreover, the logic semiconductor market's growth depends on the industries mentioned above. The increase in trend in digitalization is anticipated to further augment the industry's growth in the forecasted period.



Changing Trends - Increasing use of electronic devices with ALUs is expected to propel the logic semiconductor market.

In recent years, the consumer electronics industry has been steadily expanding and evolving in the last few years. Rising income, advancing technologies, and better Internet connectivity are the factors responsible for increasing the penetration of electronic devices in the industry. This increasing demand is bound to impact the market size positively.  Consumer electronics are being extensively used in several fields, from laptops, mobiles, ear pods, smartwatches, and smartphones to smart household devices such as washing machines, air conditioners, and many more. As per a survey conducted by Pew Research Centre in 2019, approximately one in five Americans uses either a wearable fitness tracker or a smartwatch, and 85% of the population owns a smartphone device.

Besides, it is irrefutable that cyber-physical systems and IoT blur the boundaries between the digital and physical worlds. The advent of autonomous vehicles, medical systems, robotics, and smart grids has drastically changed the lifestyles of many across the globe. According to Oracle, there are currently about ten billion IoT sensors, which are expected to increase to 22 billion by 2025. The emergence of 5G has further resulted in the adoption of smartphones and devices enabled with 5G, which in turn leads to an increase in the demand for semiconductors.  

Rapid growth in technological innovation, fierce competition between the companies, and their strategic development measures are bound to propel the market size of logic semiconductors in North America during the forecasted period.

As semiconductors are entering into a new growth cycle, boosted by in-vehicle electronics, artificial intelligence and IoT devices, automation, cloud processing, and 5G, making the planet more sustainable and smarter, several companies are moving up a gear by formulating and deploying several strategies. The strategic acquisition by the leading companies to expand the market is expected to increase the market's sales in the projected period. For instance, at the beginning of March 2021, Cisco Systems completed the acquisition of the other company, Acacia Communications, a public semiconductor company, for US$442 million, its net tangible assets. The strategic collaboration and development plans are also expected to further expand the market size. In November 2021, NXP Semiconductors, yet another giant in the semiconductor market, entered into a partnership with Ford Motor Company to provide consumers with enhanced driving experiences and services for its fleet of vehicles across the globe. The network processors from NXP assist the vehicle in providing in-vehicle, secure networking, OTA (Over-the-Air) software services and updates, vehicle health management, and a variety of other data-driven services In the same month, Samsung publicly announced its plan to build a semiconductor factory near Austin to meet the shortage of chips in electronic devices. The company has invested US $17 billion and is expected to start production in the said unit during the second half of 2024. Also in April 2022, Intel Corp., a chip-making giant, announced that its flagship process, dubbed 18A, is ahead of its schedule by six months and has been moved to late 2024 from 2025. This 18A process was a strategy deployed by the company and is at the end of its plan to accomplish 'five nodes in a four-year span. In the same month, Intel invested US $3 billion in the D1X Fab in Oregon to reclaim its technological lead and the crown in semiconductor process technology.

COVID-19 Insights

The outbreak of COVID-19 and the subsequent containment measures caused economic and financial disruption in the semiconductor industry. During the first half of 2020, many manufacturing companies and facilities were closed due to mandated lockdowns across the globe. The decrease in staffing and transport restrictions, such as decreased availability of air transport, strict border controls, and port closures, impacted several companies' ability to meet the delivery deadlines and saw decreased and canceled orders. The lack of human resources further slowed down several companies' strategic plans. At the same time, social distancing and several other factors slowed down the companies' efficiency. Nonetheless, the semiconductor market saw an increase in demand post-pandemic due to the surging demand for automation and several other factors. 

Market Segmentation:

By Type

• Special Purpose Logic
• Display Drivers
• General Purpose Logic
• Application Specific Integrated Circuit
• Programmable Logic Device

By Industry Vertical

• Communication
• Consumer Electronics
• Automotive
• Manufacturing

By Countries

• USA
• Canada
• Mexico