Artificial Intelligence (AI) in Chip Design Market Report 2025

This Artificial Intelligence (AI) in Chip Design market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The artificial intelligence (AI) in chip design market size has grown exponentially in recent years. It will grow from $2.56 billion in 2024 to $3.46 billion in 2025 at a compound annual growth rate (CAGR) of 35%. The growth in the historic period can be attributed to the surge in edge computing, growing adoption of cloud computing and edge computing, the emergence of neuromorphic computing, increasing demand for advanced Artificial Intelligence (AI) applications, increasing data traffic, and the growing trend towards autonomous vehicles.

The artificial intelligence (AI) in chip design market size is expected to see exponential growth in the next few years. It will grow to $11.4 billion in 2029 at a compound annual growth rate (CAGR) of 34.7%. The growth in the forecast period can be attributed to increasing adoption of Artificial Intelligence (AI) in consumer electronics, expansion of Artificial Intelligence (AI) applications in healthcare, increasing investment in Artificial Intelligence (AI) research and development, government initiatives and funding, and increasing demand for Artificial Intelligence (AI)-optimized chips. Major trends in the forecast period include advancements in machine learning and deep learning models, integration of Artificial Intelligence (AI) chips in the internet of things (IoT) devices, quantum computing integration, customizable Artificial Intelligence (AI) chips, and development of advanced computer vision.

The increasing demand for consumer electronics is expected to drive the growth of artificial intelligence in the chip design market in the future. Consumer electronics include electronic devices used daily by individuals, such as smartphones, televisions, laptops, cameras, and home appliances. This demand is driven by continuous innovation, the growing reliance on digital devices for communication, work, entertainment, and education, as well as the expansion of the internet and wireless networks. AI-based chip design enhances the performance and efficiency of consumer electronics by optimizing hardware for AI applications, leading to faster and more intelligent devices. For example, in May 2023, the Japan Electronics and Information Technology Industries Association reported that Japan’s electronic equipment output totaled 771,457 units, with consumer electronics production reaching 32,099 units, up from 25,268 units in May 2022. Thus, the increasing adoption of AI chips in consumer electronics is fueling the growth of AI in the chip design market.

Leading companies in the AI chip design market are focusing on advanced solutions, such as AI chips, to gain a competitive edge in the AI semiconductor market. AI chips are specialized processors designed to accelerate AI-related tasks, including machine learning, neural network processing, and deep learning. For instance, in June 2024, Advanced Micro Devices Inc., a U.S.-based semiconductor manufacturer, launched the MI325X accelerator, an AI chip designed to meet the growing demand for sophisticated chips that support complex AI applications in data centers. The MI325X aims to significantly enhance performance in AI applications, with expectations to outperform the existing MI300 series by 35 times in inference tasks, which is crucial for generative AI applications. The new processors feature advanced architectures optimized for AI and machine learning tasks, focusing on high throughput and parallel processing capabilities.

In February 2022, Advanced Micro Devices Inc. acquired Xilinx Inc. for $35 billion. This acquisition marked AMD's strategic effort to expand its portfolio by incorporating Xilinx's expertise in AI chip design services. Xilinx Inc., a U.S.-based semiconductor company, specializes in artificial intelligence-based chip design.

Major companies operating in the artificial intelligence (AI) in chip design market are Amazon Inc., Apple Inc., Alphabet Inc., Intel Corporation, IBM Corporation, Qualcomm Inc., NVIDIA Corporation, Advanced Micro Devices Inc. (AMD), HCL Technologies Limited, Microchip Technology Inc., Synopsys Inc., Cadence Design Systems Inc., Xilinx Inc., Arm Holdings PLC, Tessolve, SambaNova Systems Inc., Cerebras Systems Inc., Groq Inc., Mythic Inc., Rebellions Inc.

North America was the largest region in the artificial intelligence (AI) in chip design market in 2023. The regions covered in the artificial intelligence (AI) in chip design market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence (AI) in chip design market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Artificial intelligence in chip design involves the application of AI techniques and methodologies to the design, development, and optimization of semiconductor chips. This approach aims to improve design efficiency, accuracy, and performance while reducing the time and cost involved in creating advanced semiconductor devices.

The primary types of AI in chip design include hardware and software. Hardware refers to the physical components and devices specifically designed or optimized to support AI operations. The various technologies involved include central processing units, graphics processing units, and field-programmable gate arrays. These technologies are utilized in various applications such as data centers, automotive, consumer electronics, healthcare, industrial automation, and more.

The artificial intelligence in the chip design market research report is one of a series of new reports that provides artificial intelligence in the chip design market statistics, including artificial intelligence in the chip design industry global market size, regional shares, competitors with artificial intelligence in the chip design market share, detailed artificial intelligence in the chip design market segments, market trends, and opportunities, and any further data you may need to thrive in the artificial intelligence in the chip design industry. This artificial intelligence in the chip design research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The artificial intelligence (AI) in chip design market consists of revenues earned by entities by providing machine learning (ML), natural language processing (NLP), and optimization algorithms. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence in chip design market also includes sales of design automation tools and semiconductor tools. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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