Analog chips

Global Chip Market

Main Article: Semiconductors (Global Market)

2024: Global analog microchip market growth to $88.81 billion

In 2024, costs in the global analog semiconductor microchip market amounted to $88.81 billion. Almost half of this amount fell on the Asia-Pacific region. Industry trends are addressed in the Fortune Business Insights survey published in late April 2025.

Analog semiconductors are electronic components that process continuous varying signals. They are used in various devices, such as timers, comparators, voltage regulators, amplifiers, scan generators, oscillators, filters, etc.

Among the key growth factors, analysts cite technological advances and the desire of developers to reduce energy consumption. In particular, the demand for semiconductor components that are used in power management circuits is increasing. They are needed to improve energy efficiency and extend the battery life of smartphones, laptops, wearable gadgets and IoT devices. Power management is critical in renewable energy systems and electric vehicles.

The industry is significantly influenced by the introduction of 5G technologies, which are changing the communication infrastructure and opening up significant opportunities for semiconductor manufacturers. The expansion of the market, as analysts note, is also facilitated by the rapid development of artificial intelligence. Innovations in healthcare, including the development of new portable devices and medical sensors, have a positive impact.

By application of analog microchips, analysts segment the market into consumer electronics, IT and telecommunications, automotive, healthcare and life sciences, industry, etc. In 2024, the first of these areas provided the largest revenue - about 29% of total expenses, or $29.89 billion. Products such as smartphones, wearable gadgets, audio devices and automotive infotainment systems remain the main demand drivers. The highest growth rates are recorded in the automotive industry: analog components are used as part of various onboard systems.

From a geographical point of view, the Asia-Pacific region is leading, where sales of analog microchips in 2024 reached $39.34 billion. The dominance is due to the high concentration of electronics enterprises, the growing demand for integrated high-performance solutions and the rapid progress in the areas of the Internet of Things, 5G and automotive technologies. High growth rates are recorded in Europe, where there is significant investment in research and development. Among the leading industry players on a global scale are:

• Texas Instruments;
• Analog Devices;
• Infineon Technologies AG;
• Microchip Technology;
• Marvell Technology;
• NXP Semiconductors;
• Intel;
• STMicroelectronics;
• Renesas Electronics;
• Skyworks Solutions;
• Semtech;
• Silicon Laboratories;
• Diodes Incorporated;
• Awinic Technology;
• MaxLinear;
• Maxim Integrated;
• Asahi Kasei Microdevices Corporation;
• Toshiba;
• TSMC;
• Jiangsu Runic Technology.

In 2025, spending on analog microchips worldwide is expected to reach $93.71 million. Fortune Business Insights analysts believe that in the future, the CAGR in the market under consideration will be 6.7%. As a result, costs globally could increase to $147.57 billion by 2032.^[1]

2017: Largest producers

In early May 2018, the analytical company IC Insights presented the results of a study of the global analog chip market. Texas Instruments not only remained the largest manufacturer of such chips, but was able to strengthen its position.

In 2017, Texas Instruments earned $9.9 billion from the sale of analog chips, taking into account which the company's share in the market under consideration increased to 18%. For comparison, in 2016, TI's revenue from these products was at the level of $8.5 billion, and the share was measured at 17%.

Ranking of the largest analog chip suppliers by sales volume for 2017, data from IC Insights

Taking into account revenue growth of $1.4 billion or 16%, the result of Texas Instruments more than doubled the indicator of the second largest manufacturer of analog integrated circuits (IC) - Analog Devices (ADI). It is also noted that analog chips provided 71% of all TI semiconductor revenue in the amount of $13.9 billion and 76% of the total volume of IC sold in the amount of $13 billion.

Analog Devices had analysts record a 14 percent increase in analog chip sales. Revenue amounted to $4.3 billion against $3.8 billion a year ago. Experts estimated ADI's market share at 8%.

NXP was the only leading supplier of analog chips to demonstrate negative dynamics. Sales of these NXP products fell by 1% to $2.41 billion. According to experts, part of the decline is due to the sale to Chinese investors JAC Capital and Wise Road Capital of Standard Products, which was responsible for the production of standard electronic components at NXP.

At the end of 2017, eight manufacturers of analog ICs from the top ten sales rose by more than 10%, and the most significant increase, by 35%, was shown by ON Semiconductor.

Together, vendors from the top 10 earned $32.3 billion or 59% of the market result of $54.5 billion on analog chips. The cash contribution of the largest producers increased by 14%, and the total market share increased by 2 percentage points.^[2]

Notes