Discrete Semiconductor Market Size

Global Discrete Semiconductor Market size was valued at USD 57.2 billion in 2023 and is poised to grow from USD 62.23 billion in 2024 to USD 122.2 billion by 2032, growing at a CAGR of 8.8% during the forecast period (2025-2032).

The global discrete semiconductor industry is expanding rapidly, propelled by increasing mobile connectivity and global technology advancements. In 2023, mobile network subscriptions on smartphones worldwide numbered nearly seven billion and will rise to more than 7.7 billion in 2028, as more discrete semiconductors are used in smartphones, IoT, and 5G networks.

Furthermore, geopolitical tensions and supply chain disruptions also significantly impact the global discrete semiconductor market growth. The war between Russia and Ukraine continues to put strains on raw material supply chains, particularly neon gas, used for producing semiconductors. The manufacturers are thus diversifying sources actively and relocating plants to more secure regions. Tesla, for instance, has mandated its vendors to move part of their production lines away from China and Taiwan so that they avoid geopolitical threats. These shifts in global trade trends and technologies are driving investment in strong semiconductor manufacturing and supply chain strategies to drive long-term market growth over the coming years.

How AI is Transforming Discrete Semiconductor Industry?

Artificial intelligence is revolutionizing the discrete semiconductor industry through greater design automation, increased production efficiencies, and performance optimization. AI algorithms save development time and costs by enabling quicker and more precise semiconductor design. AI also improves semiconductor production yield and reduces downtime through predictive maintenance. AI-driven tools are increasingly becoming a necessity to manage rising complexity levels in the production and innovation sectors of semiconductors due to the ever-increasing demand for high-performance processors.

• For example, in March 2025, Synopsys launched agent engineering technology that relied on artificial intelligence to assist a human engineer with complicated semiconductor design, including circuit testing. By offering increased research and development capabilities without increasing engineering teams, AgentEngineer promises to optimize design for state-of-the-art semiconductor systems as server systems based on AI grow even more complicated.

Which Emerging Startups Are Driving Innovation in the Discrete Semiconductor Industry?

The number of innovative companies in the discrete semiconductor market boosted, bringing new technology to the industry and transforming it. These firms are addressing the largest issues of efficiency, performance, and scalability by spearheading innovation in power electronics, AI chip design, and future-proof networking.

• SiFive (United States, established in 2015): The San Mateo, California-based company SiFive is leading the charge to RISC-V, an open-standard set of instructions that competes with proprietary ISAs-like ARM and x86. The scalable and configurable processor cores made by SiFive make bespoke silicon accessible to any company, thereby allowing companies to develop unique solutions without having to pay the licensing fees that most companies would usually pay. New semiconductor goods have a reduced time to market and fewer innovation obstacles.

• Weebit Nano (Israel, established in 2015): Weebit Nano is dedicated to advancing Resistive Random-Access Memory (ReRAM) technology with the goal of transforming data storage using non-volatile memory solutions that are faster, more stable, and more energy efficient. Weebit Nano has been able to integrate its ReRAM into production processes and set it up as a reliable replacement for conventional flash memory in various applications, from Internet of Things devices to car systems, by partnering with research organizations such as CEA-Leti.