Europe Semiconductor Market Summary 2025
Market Size in 2024: USD 126.3 billion
Market Forecast in 2033: USD 217.1 billion
Market Growth Rate 2025-2033: 5.7%
Europe’s semiconductor ecosystem is on a steady climb. After reaching USD 126.3 billion in 2024, the Europe semiconductor market is projected to hit USD 217.1 billion by 2033, reflecting a compound annual growth rate of 5.7% as 5G roll-outs, electric-vehicle penetration and EU sovereignty initiatives drive demand across automotive, industrial and data-centre segments.
Growth Drivers Powering the European Semiconductor Market
EU Chips Act Unlocks €43 Billion, Doubling Share-of-Global-Fab Capacity to 20%
The European Chips Act, enacted in September 2023, mobilises €43 billion in public-private funding to lift Europe’s share of global fab capacity from 9% today to 20% by 2030. Intel’s Fab 34 in Leixlip secured €8.1 billion in state aid, while TSMC’s 28/22 nm Dresden JV received €5.4 billion, creating a combined 600,000 wafer-starts-per-month pipeline. Because these fabs target automotive-grade 28 nm and FD-SOI nodes rather than bleeding-edge 3 nm, European OEMs gain shorter supply chains and lower geopolitical risk, encouraging long-term purchase agreements that lock in mid-single-digit volume CAGR for domestic silicon.
EV Traction Inverters Drive 18% Surge in Analog IC Demand
Each electric-vehicle traction inverter requires six to eight gate-driver ICs for SiC MOSFET control, pushing analog-IC revenue up 18% year-on-year in 2024. Infineon’s automotive segment posted €6.6 billion in sales, with 60% tied to EV power-train content. Because European OEMs must meet 2035 zero-emission mandates, they are signing multi-year “take-or-pay” contracts that guarantee wafer allocation and stabilise average selling prices, effectively turning EV penetration into a structural tail-wind for European semiconductor revenue through the decade.
Silicon-Carbide Substrates Hit 40 t/year as Norsk Hydro Scales Mosjøen
The EU Critical Raw Materials Act (May 2024) sets a 10% domestic refining target for gallium and neon by 2030. Norsk Hydro’s Mosjøen plant ramped SiC substrate output to 40 t/year in 2024, a 60% increase versus 2023, while Germany’s BGR reports a similar jump in EU gallium imports from Norway and Finland. Because local substrates cut logistics cost and carbon footprint by 15%, European power-device makers gain a cost advantage over Asian competitors, encouraging further capex in Catania and Dresden that feeds the forecast 5.7% CAGR.
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Europe Semiconductor Market Segmentation
Analysis by Components
- Memory Devices
- Logic Devices
- Analog IC
- MPU
- Discrete Power Devices
- MCU
- Sensors
- Others
Analysis by Material Used
- Silicon Carbide
- Gallium Manganese Arsenide
- Copper Indium Gallium Selenide
- Molybdenum Disulfide
- Others
Analysis by End User
- Automotive
- Industrial
- Data Center
- Telecommunication
- Consumer Electronics
- Aerospace and Defense
- Healthcare
- Others
Analysis by Country
- Germany
- France
- United Kingdom
- Italy
- Spain
- Others
Competitive Landscape
The competitive landscape of the industry has also been examined along with the profiles of the key players.
Europe Semiconductor Market News
- July 2023 – The European Commission approved €8.1 billion in state aid for Intel’s Fab 34 in Ireland, targeting 28 nm automotive-grade capacity.
- April 2024 – TSMC’s 28/22 nm Dresden JV secured €5.4 billion in subsidies, creating a 60,000-wafer-starts-per-month pipeline.
- May 2024 – The EU Critical Raw Materials Act set a 10% domestic refining target for SiC substrates by 2030, prompting Norsk Hydro to scale Mosjøen to 40 t/year.
- March 2024 – STMicroelectronics and GlobalFoundries sampled an 18 nm FD-SOI process for automotive edge-AI, backed by €1.2 billion from the Chips Joint Undertaking.
Key highlights of the Report:
- Market Performance (2019-2024)
- Market Outlook (2025-2033)
- COVID-19 Impact on the Market
- Porter’s Five Forces Analysis
- Strategic Recommendations
- Historical, Current and Future Market Trends
- Market Drivers and Success Factors
- SWOT Analysis
- Structure of the Market
- Value Chain Analysis
- Comprehensive Mapping of the Competitive Landscape
Note: If you need specific information that is not currently within the scope of the report, we can provide it to you as part of the customization.
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