Semiconductor Fabrication Investments Expected to Exceed $1.5 Trillion by 2030

Key Takeaways

Global semiconductor market projected to exceed $1 trillion by 2030, driven by AI and government investments.
Growth in data centers and automotive industry highlights significant demand for advanced semiconductors.
Industry faces a talent gap requiring an additional 100,000 engineers to support design growth by 2030.

Transformations in the Semiconductor Industry

According to PwC’s “Semiconductor & Beyond 2026” report, global semiconductor investments are set to surpass those of the last two decades. The report analyzes supply and demand dynamics across the semiconductor value chain, revealing that current robust growth is a reflection of industry transformation, driven by government subsidies and efforts to stabilize supply chains.

PwC forecasts that the semiconductor market will be valued at over $1 trillion by 2030. This growth is mainly attributed to global server and network markets, fueled by the increasing demand for semiconductors in data centers, particularly for AI accelerators and high-bandwidth memory (HBM). The report indicates that the global server market could exceed $300 billion in 2030 due to this surge in AI workloads.

Collaboration among fabless companies, foundries, and IP vendors is vital for strengthening the semiconductor ecosystem. However, a significant talent gap looms, with PwC estimating that an additional 100,000 engineers will be needed to support anticipated design growth by 2030. Glenn Burm, Global Semiconductors Leader at PwC, emphasizes that the industry is undergoing rapid transformation due to advancements in AI, geopolitical changes, and increased government support.

By 2030, the server and network segment is expected to emerge as the largest market for semiconductor demand. The report also forecasts that revenue from AI accelerators in data centers will account for about 50% of the total market. This trend will attract traditional fabless companies and major tech players like cloud service providers to develop optimized AI accelerators.

The automotive sector is identified as the second-fastest growing area, projected to expand at an annual rate of 10.7%. Growth is driven by advancements in electric vehicles and autonomous technologies. PwC anticipates that hybrid and electric vehicles could represent around 50% of total vehicle sales by 2030, with power semiconductors constituting over 50% of semiconductor costs. Consequently, demand for wide-bandgap semiconductors, such as silicon-carbide (SiC) and gallium-nitride (GaN), is expected to rise as they replace silicon in EV power electronics.

By 2030, more than 60% of power semiconductors in the automotive sector are expected to be based on GaN and SiC technologies, a significant increase from their current combined share of 23%. Additionally, the home appliance sector is projected to grow by 5.6%, with emerging technologies like AR/VR and personal robots expected to rise by 24.5% and 12.9%, respectively, by 2030. The growth of AI appliances will further boost the demand for AI processors and semiconductors, such as power management ICs (PMICs), enhancing power efficiency and user experience.

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