5G Semiconductor Market Size, Share, Opportunities, And Trends By Application (Consumer Electronics (Smartphones (Premium, Basic), Others), Infrastructure, Others), By Component (Baseband Processors, RF, Power Management), By Frequency (Sub-6 GHz, MmWave), And By Geography - Forecasts From 2023 To 2028

The global 5G semiconductor market is expected to grow at a CAGR of 9.28% from US$23.742 billion in 2022 to US$40.435 billion in 2028.

GROWTH DRIVERS

• 5G Paves the way for the semiconductor industry

As the market sees a surge in 5G and IoT devices, the need for top-quality semiconductor chips is also on the rise. The demanding requirements of 5G products, which include faster network speed, higher frequency bands, increased connections, reduced network latency, and enhanced network reliability, necessitate advanced chip designs and structures. Innovators are keen on harnessing 5G's potential, prompting the semiconductor industry to boost wafer and chip production to meet these technical specs quickly. The semiconductor industry is experiencing growth, driven by the smartphone sector propelling the industry chain towards a new phase of growth.

For instance:

• In September 2023, Qualcomm Technologies, Inc. and Apple Inc. inked an agreement for the supply of Snapdragon® 5G Modem-RF Systems to be featured in smartphones slated for launch in 2024, 2025, and 2026. This strategic collaboration underscores Qualcomm's ongoing leadership in the realm of 5G technologies and products.
• In July 2023, Intel revealed a significant collaboration with Ericsson, centered around the utilization of Intel's cutting-edge 18A process and manufacturing technology for Ericsson's forthcoming next-generation optimized 5G infrastructure. Under this partnership, Intel will be responsible for crafting custom 5G SoCs (system-on-chip) tailored for Ericsson, with the aim of delivering highly distinctive and industry-leading products for the future of 5G infrastructure.
• In May 2022, MediaTek introduced the Dimensity 1050 system-on-chip (SoC), marking its debut in the world of mmWave 5G chipsets. This powerful chipset is designed to drive the upcoming wave of 5G smartphones, offering seamless connectivity, high-quality displays, gaming capabilities, and remarkable power efficiency. By employing dual connectivity via both mmWave and sub-6GHz, the Dimensity 1050 is set to provide the necessary speeds and capacity to deliver an exceptional smartphone experience, even in densely populated regions.

Development in Advanced Chip and Packaging Technology

Advanced packaging plays a pivotal role in satisfying the need for semiconductors powering emerging applications that are rapidly becoming mainstream, such as 5G, autonomous vehicles, IoT technologies, and virtual and augmented reality. The emerging technology demands more robust and efficient chips to accommodate higher data transfer speeds and minimal latency. Consequently, this has driven the creation of innovative chips like 5G modems, radio-frequency integrated circuits (RFICs), and millimeter-wave (mmWave) components. In the realm of 5G and beyond communication, reducing transmission loss is a critical challenge. To address this, advanced packaging technologies are employed to bring the antenna closer to the RF IC chip, effectively minimizing transmission loss. Currently, "Antenna-in-package (AiP)" stands as the most feasible solution for 5G mmWave technology.

In December 2022, DuPont introduced CYCLOTENE™ Dry-Film Photo-Imageable Dielectric Material, aiming to elevate advanced semiconductor packaging, particularly for applications like 5G and AI. These innovative packaging technologies stand out for their exceptional thermal stability and favourable dielectric properties, ensuring reliable signal integrity across a broad frequency spectrum, including the high frequencies associated with 5G. This development addresses the escalating demands of high-frequency data transmission applications.

In October 2022, TSMC introduced the OIP 3DFabric Alliance, aimed at influencing the future of semiconductor and system innovations. This alliance, the sixth of TSMC's OIP Alliances, is a pioneering initiative in the semiconductor industry. It collaborates with partners to expedite 3D IC ecosystem innovation and preparedness, offering a comprehensive range of top-tier solutions and services for semiconductor design, memory modules, substrate technology, testing, manufacturing, and packaging.

Rise in Smartphone Adoption

The growing use of smartphones is leading to an increased demand for semiconductors within these devices. This demand is primarily driven by the rising adoption of smart technologies in mobile phones and the swift rollout of advanced mobile communication standards, such as 5G. The imminent arrival of 5G technology, along with government approvals, is poised to offer extensive opportunities for smartphone users. The surge in mobile device shipments, particularly smartphones, is bolstering the market for various semiconductor components like application processors, modems, MEMS sensors, wireless connectivity ICs, and audio ICs integrated into these devices.

According to the GSMA Mobile Economy Report 2023, data based on the region's Smartphone adoption in 2022 shows steady growth in various regions. Notable increases include North America, in 2022, North America leads in smartphone adoption with an impressive 84 percent of total mobile connections, followed closely by Greater China and Europe, both at 81 percent. The regions of CIS and Asia Pacific are poised for significant growth, with adoption rates expected to reach 80 percent and 74 percent, respectively. This data underscores the strong global trend toward smartphone usage, with emerging markets showing substantial potential for further growth.

EMERGING OPPORTUNITIES IN THE 5G Semiconductor Market

Gallium Nitride Semiconductors in 5G Technology

Gallium Nitride (GaN) is playing a pivotal role in advancing 5G technology, primarily due to its ability to facilitate faster data transfer speeds and enhance overall efficiency. GaN's wider bandgap allows it to efficiently handle high-frequency signals, making it particularly well-suited for use in 5G base stations and various communication infrastructure components. This semiconductor material is revolutionizing the communication industry by introducing higher levels of efficiency and reliability to 5G technology. With its outstanding attributes such as high thermal stability, excellent electron mobility, and substantial breakdown voltage, GaN emerges as an ideal choice for powering the 5G networks of the future.

In May 2022, MACOM Technology Solutions Holdings Inc. shared the good news that they've made successful prototypes of RF GaN-on-Silicon. This accomplishment has encouraged ST and MACOM to keep collaborating and strengthen their partnership. RF GaN-on-Silicon technology shows great promise for improving 5G and upcoming 6G infrastructure.

GEOGRAPHICAL PRESENCE

In August 2022, Micron Technology, Inc. revealed its intentions to invest $40 billion over the next decade. They plan to establish state-of-the-art memory manufacturing facilities in the United States, to be completed in several stages. Micron's advanced manufacturing in the U.S. is vital for national security and ensuring a robust supply chain. This investment is driven by the rising need for memory in essential markets, including automotive and data centers, due to the increasing use of artificial intelligence and 5G technology.

In March 2023, Polymatech Electronics, India's exclusive semiconductor chip producer, is preparing to begin large-scale production of state-of-the-art semiconductor parts in India, focusing on 5G and 6G applications. After undergoing testing, Polymatech will commence chip manufacturing at its primary production facility in Kancheepuram, Tamil Nadu. Polymatech's semiconductors will not only cut down on the expenses of obtaining components for telecommunications businesses but also lead to decreased power loss and greater efficiency.

In August 2022, GlobalFoundries and Qualcomm unveiled their intention to significantly expand their ongoing, long-term semiconductor manufacturing partnership. This expansion secures a steady supply of wafers and reinforces the commitment to support semiconductor manufacturing in the United States, with an emphasis on enhancing capacity at GlobalFoundries' cutting-edge semiconductor production facility in Malta, New York. This announcement extends Qualcomm Technologies and GlobalFoundries' collaboration in the United States, particularly in the areas of FinFET technology for 5G transceivers, Wi-Fi, automotive, and IoT connectivity.

MAJOR PLAYERS IN THE MARKET

Several key players in the market, including Arctic Semiconductor, Qualcomm, Samsung Huawei and others, offer a wide range of product offerings, which encompass:

5G Semiconductor Market Scope:

SEGMENTATION

The global 5G semiconductor market has been analyzed through the following segments:

• By Application
  • Consumer Electronics
    • Smartphones
      • Premium
      • Basic
    • Others
  • Infrastructure
  • Others
• By Component
  • Baseband Processors
  • RF
  • Power Management
• By Frequency
  • Sub-6 GHz
  • mmWave
• By Geography
  • Americas
    • United States
    • Others
  • EMEA
    • Germany
    • UK
    • Others
  • APAC
    • China
    • Japan
    • South Korea
    • Others