Emerging Trends to Drive Computer Microchip Market Growth at 10.1% CAGR Through 2029

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Computer Microchip Market Size Growth Forecast: What to Expect by 2025?
The value of the computer microchip market has seen robust growth in the past few years. It is projected to escalate from $24.17 billion in 2024 to $26.43 billion in 2025, with a compound annual growth rate (CAGR) of 9.3%. The growth observed in the past years can be credited to the augmented demand for consumer electronics, the upswing of personal computers and the internet, increased investment in research and development, and the adoption of the internet of things (IoT).

How Will the Computer Microchip Market Size Evolve and Grow by 2029?
The size of the computer microchip industry is anticipated to experience substantial expansion in the forthcoming years. It is projected to reach a figure of $38.83 billion in 2029, with a compound annual growth rate (CAGR) of 10.1%. The anticipated growth during the forecast period may be due to advancements in semiconductor technologies, the proliferation of 5G networks, the increased demand for edge computing, the evolution of wearable technology, and the broadening scope of artificial intelligence (AI). The forecast period will see leading trends such as the incorporation of enhanced security mechanisms, the creation of specialized chips, the broadening of the internet of things (IoT) technology, advancements in smart devices, and the acceptance of smart home technologies.

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What Drivers Are Propelling the Growth of Computer Microchip Market Forward?
The rise in the use of consumer electronics is predicted to boost the computer microchip market's expansion. Consumer electronics, which are electronic devices designed for personal use, mainly facilitate entertainment, communication, and personal organization, with their main aim being to simplify daily life through easy-to-use technology. The increased utilization of consumer electronics can be attributed to several factors, including connectivity, remote work and learning capabilities, affordability, and accessibility. Computer microchips function as the heart of these devices, running operations and ensuring smooth performance. They manage connectivity and fine-tune energy usage for optimal battery life in mobile electronic devices. For example, data from the Japan Electronics and Information Technology Industries Association revealed that in May 2023, total electronic equipment production in Japan hit $4919 million (¥771,457 million); out of this, consumer electronics production was $204.67 million (¥32,099 million), a significant rise from $161.12 million (¥25,268 million) in May 2022. Hence, the escalating utilization of consumer electronics is fueling the computer microchip market's growth.

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What Are the Key Trends Driving Computer Microchip Market Growth?
Prominent corporations involved in the computer microchip industry are concentrating on creating cutting-edge products like high-bandwidth memory chips to cater for the surging requirement for quicker data processing and the facilitation of high-performance computing tasks. High-bandwidth memory (HBM) chips expedite the transfer and communication of data between memory and processors, proposing a wider data pathway. To illustrate, Samsung Electronics Co. Ltd., a consumer electronics company from South Korea, introduced its new memory chip known as HBM3E 12H with the 'best-in-class capacity' for AI applications in February 2024. This notable chip offers an impressive bandwidth peaking at 1,280 gigabytes per second (GBps) and 36 gigabytes (GB) capacity, indicating a 50% increment in both bandwidth and capacity. Being the first HBM3E DRAM equipped with 12-stack available in the market, it caters to the escalating needs of AI and high-performance computing. Thanks to Samsung's thermal compression non-conductive film (TC NCF), the 12-layer stack stays at the same height as 8-layer configurations, proficiently managing heat and lessening chip die distortion, rendering it ideally suitable for data centres and rigorous AI applications.

What Are the Key Segments in the Computer Microchip Market?
The computer microchip market covered in this report is segmented -

1) By Type of Microchip: Central Processing Unit (CPU), Graphics Processing Unit (GPU), Memory Chips, Application-Specific Integrated Circuit (ASIC), Field-Programmable Gate Array (FPGA), Other Types Of Microchip
2) By Application: Data Processing, Graphics Rendering, Artificial Intelligence And Machine Learning, Networking And Connectivity, Sensor Integration, Encryption And Security, Other Applications
3) By End-Use Industry: Consumer Electronics, Automotive, Industrial, Healthcare, Aerospace And Defense, Telecommunications, Other End-Use Industries

Subsegments:
1) By Central Processing Unit (CPU): Desktop CPUs, Mobile CPUs, Server CPUs, High-Performance Computing CPUs
2) By Graphics Processing Unit (GPU): Integrated GPUs, Discrete GPUs, Mobile GPUs, Professional Graphics GPUs
3) By Memory Chips: Dynamic Random Access Memory (DRAM), Static Random Access Memory (SRAM), Flash Memory, Read-Only Memory (ROM)
4) By Application-Specific Integrated Circuit (ASIC): Digital ASICs, Analog ASICs, Mixed-Signal ASICs, FPGA-Based ASICs
5) By Field-Programmable Gate Array (FPGA): Low-Power FPGAs, High-Performance FPGAs, Embedded FPGAs, Flash-Based FPGAs
6) By Other Types Of Microchip: System On Chip (SoC), Network Processors, Digital Signal Processors (DSP), Microcontrollers (MCU)

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Who Are the Key Players Shaping the Computer Microchip Market's Competitive Landscape?
Major companies operating in the computer microchip market are Samsung Electronics Co. Ltd., Taiwan Semiconductor Manufacturing Company Limited, Intel Corporation, Qualcomm Incorporated, Micron Technology Inc., NVIDIA Corporation, Toshiba Corporation, Advanced Micro Devices Inc., Texas Instruments Incorporated, STMicroelectronics N.V., MediaTek Inc., Infineon Technologies AG, NXP Semiconductors N.V., Analog Devices Inc., Renesas Electronics Corporation, ON Semiconductor Corporation, Microchip Technology Inc., Marvell Technology Group Ltd., Cadence Design Systems Inc., Nuvoton Technology Corporation, Silicon Laboratories, Cypress Semiconductor Corporation

What Geographic Markets Are Powering Growth in the Computer Microchip Market?
Asia-Pacific was the largest region in the computer microchip market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the computer microchip market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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