This market research report was originally published at the Yole Group’s website. It is reprinted here with the permission of the Yole Group.
The market research & strategy consulting company, Yole Group, delivers a dual perspective on global semiconductor dynamics and China’s fast-evolving industry landscape.
Key Takeaways
- Global semiconductor device revenues are set to reach US$743 billion in 2025, up 14% YoY.
- U.S. players strengthened their lead in 2024, achieving a 56% global market share.
- Outspent by the U.S., China is no longer the region with the largest demand for semiconductor devices.
- China’s foundry capacity covers 112% of domestic electronics demand, but only 71% of domestic electronics assembly.
- China’s domestic device industry could reach about a 10% global market share by 2030, with device players targeting US$100 billion in aggregated annual revenue.
Yole Group announces the release of two complementary reports: Overview of the Semiconductor Devices Industry – H2 2025, providing a global assessment of the semiconductor devices market, and China Semiconductor Industry 2025, offering an in-depth analysis of China’s emerging semiconductor supply chain from equipment to devices, including foundries and OSATs. Together, these two new publications deliver a consolidated view of the industry’s structural shifts, regional dynamics, and medium-term technology trajectories.
These reports reflect Yole Group’s core objective: to support market understanding, strategic planning, and technology-driven decision-making across the global semiconductor ecosystem.
A dual lens on the transformation of the global and China-driven semiconductor ecosystems
The Overview of the Semiconductor Devices Industry H2 2025 report examines global device market performance, geographic concentration, technology segmentation, and the increasing influence of U.S.-based fabless giants supported by advanced-node foundries located in Asia.
At the same time, the China Semiconductor Industry 2025 report focuses on Mainland China’s accelerating push toward a complete semiconductor ecosystem, analyzing self-sufficiency in all respects: capacity expansion, technology positioning, and the evolution of domestic players across all businesses, such as design, wafer manufacturing, assembly& test, and equipment.
The Chinese government is pushing industry-wide to build a self-sustaining semiconductor ecosystem, while at the same time maintaining an ‘arm’s length’ competitive stance from the U.S. in the emerging AI technology arena. Ultimately, balancing breadth and focus is the impossible task being asked today of the semiconductor industry in China.
Pierre Cambou, Principal Analyst, Global Semiconductors at Yole Group
Global semiconductor devices industry: a renewed growth cycle
Yole Group’s global analysis highlights the strong geographic concentration of device leadership across the U.S., Mainland China, Taiwan, South Korea, Japan, and Europe. In 2024, U.S. companies achieved a 56% market share, driven by the performance of fabless players such as Nvidia and Broadcom, supported by Taiwan’s open foundries TSMC and UMC.
After a challenging period, semiconductor device revenues rebounded sharply in 2024. Yole Group forecasts a US$743 billion market in 2025, a 14% increase, with market structure remaining consistent:
- Logic & processors: 40–50%
- Memory: 20–30%
- Power, analog & discretes: 17–23%
- Optoelectronics & sensors: 12–14%
Mainland China continues to act as the world’s consumer electronics hub, with about one-third of all semiconductor devices used in locally assembled electronics systems. This reinforces China’s key role in global demand and incentivizes Chinese OEMs to source part of their semiconductor supplies not just locally but now from domestic players.
China’s semiconductor ecosystem: capacity, resilience, and long-term strategy
China’s electronics manufacturing base, traditionally export-driven, has become increasingly supported by domestic consumption. Nevertheless, electronic manufacturing still represents 158% of domestic electronic demand.
Yole Group’s findings highlight the following structural trends:
- Capacity expansion and localization: foundry capacity has reached 71% of local electronics manufacturing needs, and has already exceeded domestic electronic demand at 112%. Equipment localization is progressing but remains limited, with the potential to reach 52% by 2030.
- Domestic industry outlook
- China’s domestic device industry could represent 10% of global device revenues by 2030.
- Device revenue from local players is projected to reach US$100 billion by 2030.
- Foundry revenues have grown to US$16.4 billion.
- OSAT revenues increased +57% in the last five years.
- Equipment revenue from local players is projected to reach US$33 billion by 2030.
China is building a broad, vertically integrated ecosystem while navigating the challenges of strategic independence, export controls, and global competition across advanced technologies—including AI.
The semiconductor market is fragmenting along geopolitical, economic, and technological lines. Value creation increasingly depends on a clear understanding of these emerging boundaries—where capital, technical capabilities, and resources intersect.
Claire Troadec, Director, Global Semiconductors at Yole Group
With these two new semiconductor-focused reports, Yole Group delivers a comprehensive, data-driven understanding of global device markets and China’s rapidly evolving semiconductor ecosystem. These analyses support companies, investors, and policymakers in anticipating semiconductor market cycles, guiding strategic decisions, and preparing for the next phase of global semiconductor industry transformation.
Discover Yole Group’s full portfolio of semiconductor-related publications, events, and market intelligence on its corporate website, and follow Yole Group’s activities on LinkedIn!
Source: www.yolegroup.com
