Semiconductor Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 684 semiconductor manufacturers in the US design and build a variety of semiconductor and related solid-state devices including integrated circuits, memory chips, microprocessors, diodes, transistors, and solar cells. Semiconductors are used in a wide range of products, but major categories include computers and electronic devices, machinery, appliances, transportation equipment, solar panels, and lighting equipment.

Rapid Technology Innovation

Semiconductor manufacturers spend significant amounts of cash on research and development to meet customer demand and stay ahead of competition.

Shrinking Nodes, Fewer Labs

The number of cutting-edge semiconductor manufacturers is shrinking as fewer firms have the financial resources needed to further miniaturize semiconductors.

Industry size & Structure

A typical semiconductor manufacturer operates out of a single location, employs 295 workers, and generates about $86 million annually.

    • The semiconductor manufacturing industry consists of about 684 companies which employ about 202,000 workers and generate about $59 billion annually.
    • Customer industries include manufacturers of computers and electronic devices, telecommunications equipment, machinery, appliances, transportation equipment, solar panels, and lighting equipment.
    • The industry is highly concentrated with the 20 largest firms representing 78% of industry revenue.
    • Large companies include Intel, Global Foundries, Cypress Semiconductor, IBM, and Texas Instruments.
                                  Industry Forecast
                                  Semiconductor Manufacturers Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Mar 4, 2025 - TSMC Pledges To Invest In US Facilities
                                  • Semiconductor manufacturer TSMC said in early March that it will invest “at least” $100 billion in chip manufacturing plants in the US over the next four years as part of an effort to expand the company’s network of semiconductor factories. TSMC previously pledged to spend $65 billion on US-based fabrication plants and has received up to $6.6 billion in grants from the CHIPS Act, a major Biden administration-era law that sought to boost domestic semiconductor production. The US government considers TSMC’s heavy Taiwanese presence a strategic risk because of growing threats from the mainland Chinese government, according to TechCrunch.
                                  • China’s semiconductor industry has grown significantly in recent years, according to Indian technology news site The Print. China’s domestic semiconductor equipment market has grown 40-fold from 2008 to 2023. Growth has been particularly strong in memory chips, wafer foundries, and chip equipment. China accounted for over 20% of global wafer fabrication capacity in 2022. Chinese chip design firms are expected to capture 15% of the global market share, according to The Print.
                                  • Semiconductor market growth is expected to continue in 2025, with the World Semiconductor Trade Statistics (WSTS) forecasting a 12.5% expansion to reach an estimated valuation of $687 billion. Growth is expected to be driven by the memory and logic sectors, which are each on track to surpass $200 billion in 2025. The sectors are expected to see year-over-year growth of 25% and 10% respectively. “All other segments are anticipated to record single-digit growth rates,” the WSTS noted. All regions are poised for continued expansion, with the Americas and Asia-Pacific expected to maintain their double-digit growth.
                                  • Semiconductor manufacturing industry employment decreased slightly while wages for nonsupervisory employees increased slightly during the first month of 2025, according to the US Bureau of Labor Statistics (BLS). Semiconductor manufacturers slightly decreased their prices during 2024, according to the BLS.
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