Chipset and Processors Market Research Reports

Chipset and Processors Industry Overview

The global chipset and processors market is a critical component of the technology sector, enabling the functionality of a wide range of devices, from smartphones and personal computers to industrial systems and automotive applications. This market is projected to reach USD 441.2 billion in 2025, growing to USD 609.4 billion by 2030, at a compound annual growth rate (CAGR) of 4.1%. The growth of this market is driven by the increasing demand for high-performance computing, the expansion of the Internet of Things (IoT), and innovations in cloud computing and artificial intelligence (AI). The consumer electronics industry is one of the largest end-users of chipsets and processors, especially in devices like smartphones, laptops, tablets, and gaming consoles. As consumers demand faster, more efficient, and more powerful devices, chipset and processor manufacturers are compelled to push the boundaries of innovation. The launch of 5G technology, which requires advanced chipsets capable of supporting high-speed connectivity, is another key driver. Additionally, the growth in gaming both in terms of personal gaming and cloud gaming is creating substantial demand for high-performance processors and graphics chips to handle increasingly complex and demanding applications.

The IoT market is also a major driver for the chipset and processor market, as billions of connected devices need efficient, low-power processors to function. The rise of smart homes, wearables, and automotive IoT technologies is fueling demand for processors that are small, energy-efficient, and powerful. The increased integration of AI and machine learning capabilities in consumer devices, industrial applications, and enterprise-level systems is further propelling the demand for more sophisticated chipsets that can handle large volumes of data processing and real-time decision-making. Another key growth area is the automotive sector, where chipsets and processors are increasingly being used in autonomous vehicles, in-car entertainment systems, and electric vehicles (EVs). Autonomous vehicles rely on a network of advanced processors for tasks such as object detection, route planning, and real-time communication with other vehicles and infrastructure. Furthermore, the rise of electric vehicles requires highly efficient processors to manage battery systems, drive motors, and charging networks.

Asia-Pacific is the dominant region in the chipset and processors market, accounting for over 50% of global demand in 2025. Countries like China, South Korea, and Taiwan are key players in the semiconductor manufacturing sector, with Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics leading the charge in advanced chip production. The rapid growth of the technology sector in China and the increasing adoption of consumer electronics in India are key drivers of this market. North America follows closely, driven by strong demand from the automotive and technology sectors, with companies such as Intel, Nvidia, and Qualcomm leading innovations in processing power. The region is expected to experience steady growth, with significant advancements in AI, autonomous vehicles, and cloud computing contributing to demand. Europe is seeing an increase in demand for chipsets and processors, particularly in the automotive and industrial sectors. The European Union's focus on technological innovation and the development of smart manufacturing systems is also expected to support market growth in this region, though it faces supply chain challenges and is looking to bolster domestic semiconductor production.

Top Countries Contributing in Chipset and Processors Market

United States (2025 Market Size: USD 157.4 billion)

According to Cognitive Market Research, the United States is projected to be the largest market for chipsets and processors, with an estimated market size of USD 157.4 billion by 2025. The country is home to some of the world’s leading semiconductor companies, including Intel, AMD, and Nvidia, which play a pivotal role in driving market growth. Demand for high-performance processors and chipsets continues to be fueled by advancements in artificial intelligence (AI), cloud computing, gaming, and consumer electronics. The U.S. also benefits from significant investments in semiconductor research and development, enhancing the capabilities of processors across various industries, including automotive, healthcare, and telecommunications. Furthermore, the growing trend of edge computing and the expansion of 5G networks are expected to further boost the demand for advanced chipsets and processors. With a robust technology ecosystem and continued innovation, the U.S. remains a dominant player in the chipset and processor market globally.

China (2025 Market Size: USD 130.8 billion)

China is projected to reach a market size of USD 130.8 billion by 2025 in the chipsets and processors segment. As the world’s largest manufacturer and consumer of electronic devices, China plays a significant role in the global semiconductor market. The country is not only home to a large number of chip manufacturing companies, such as SMIC (Semiconductor Manufacturing International Corporation), but it also has substantial demand for processors across various industries, including consumer electronics, automotive, and telecommunications. The growing adoption of AI, Internet of Things (IoT), and 5G technologies in China is expected to drive further demand for advanced processors and chipsets. Additionally, China is focusing on self-reliance in semiconductor production due to ongoing geopolitical tensions, leading to increasing investments in domestic semiconductor research and development. The expansion of smart manufacturing and the rise of China’s digital economy will continue to fuel the market’s growth over the coming years.

Japan (2025 Market Size: USD 38.2 billion)

Japan is anticipated to reach a market size of USD 38.2 billion by 2025 in the chipsets and processors sector. The country is known for its advanced technology and manufacturing capabilities, with key players like Toshiba, Sony, and Panasonic contributing to the production of semiconductors and processors. Japan’s semiconductor market is heavily influenced by demand from automotive industries, particularly as the adoption of electric vehicles (EVs) and autonomous driving technologies increases. The country’s commitment to innovation in AI, robotics, and IoT also contributes to the growing demand for powerful processors. Furthermore, Japan’s investments in next-generation technologies, such as quantum computing and 5G, are expected to drive significant growth in the chipset and processor market. Japan’s strong industrial base, coupled with its expertise in high-precision manufacturing, positions it as a key player in the global semiconductor ecosystem.

South Korea (2025 Market Size: USD 32.1 billion)

South Korea’s chipset and processor market is expected to reach USD 32.1 billion by 2025, driven by leading semiconductor manufacturers such as Samsung Electronics and SK hynix. The country is one of the global leaders in memory chips, but its focus is also expanding into high-performance processors and chipsets used in AI, IoT, and 5G networks. South Korea's robust semiconductor production capacity, along with its technological expertise, supports the demand for advanced processors across various industries, including consumer electronics, telecommunications, and automotive. The nation is also investing heavily in the development of next-generation chip technologies, such as 7nm and 5nm nodes, to stay ahead of global competition. As South Korea continues to innovate and increase its semiconductor production capabilities, it remains a critical player in the global chipset and processor market, with substantial growth projected over the next five years.

Germany (2025 Market Size: USD 21.6 billion)

As per Cognitive Market Research, Germany is expected to see a chipset and processor market size of USD 21.6 billion by 2025. As Europe’s largest economy, Germany has a strong foothold in the semiconductor market, with a focus on automotive, industrial automation, and telecommunications sectors. The demand for chipsets and processors in Germany is driven by the increasing adoption of Industry 4.0 technologies, which rely heavily on IoT and AI-powered systems. The country’s automotive industry, home to giants like Volkswagen, BMW, and Daimler, is also a major contributor to the growing demand for high-performance processors for electric vehicles (EVs) and autonomous driving applications. Additionally, the expansion of 5G infrastructure and the growth of smart factories further boost the market for chipsets and processors in Germany. With a strong focus on innovation and technological advancement, Germany remains a key player in the global semiconductor landscape.

Taiwan (2025 Market Size: USD 18.9 billion)

Taiwan’s chipset and processor market is projected to reach USD 18.9 billion by 2025, thanks to its dominance in semiconductor manufacturing. Taiwan is home to TSMC (Taiwan Semiconductor Manufacturing Company), one of the largest foundries globally, which plays a crucial role in producing processors for a variety of industries. The country is particularly influential in producing advanced node chips for smartphones, consumer electronics, and automotive applications. Taiwan’s semiconductor industry continues to benefit from increasing global demand for high-performance processors, particularly for applications such as 5G, AI, and IoT. The country’s well-established supply chain and research and development capabilities ensure that Taiwan remains a central hub for semiconductor production, with an expanding market share in the global chipset and processor sector. As the world increasingly relies on semiconductor technologies for next-generation applications, Taiwan will continue to see strong growth in its chipset and processor market.

India (2025 Market Size: USD 15.3 billion)

India’s chipset and processor market is expected to reach USD 15.3 billion by 2025, fueled by a rapidly growing digital economy and a rising demand for consumer electronics, smartphones, and IoT devices. With the country’s push toward digitalization, the adoption of 5G technologies, and the rise of AI-powered applications, the demand for advanced processors is expected to surge. India’s expanding tech industry, along with the growing interest in electronics manufacturing, presents a strong opportunity for semiconductor companies to enter the market. The government’s “Make in India” initiative, which encourages local manufacturing of electronic components, is also expected to drive growth in the domestic chipset and processor sector. India’s increasing integration into the global tech supply chain, combined with its large consumer base and emerging innovations in AI and machine learning, positions it as a rising player in the chipset market.

United Kingdom (2025 Market Size: USD 10.7 billion)

The United Kingdom’s chipset and processor market is projected to reach USD 10.7 billion by 2025. The UK remains a key player in Europe, driven by its strong tech sector, especially in AI, fintech, and telecommunications. The demand for high-performance processors is increasing, particularly in the areas of data centers, cloud computing, and the growing adoption of IoT technologies. Leading technology firms and startups in the UK are also driving demand for semiconductor components. The UK government has outlined plans to bolster its semiconductor sector, supporting the growth of homegrown tech companies and encouraging foreign investment in semiconductor research and development. Additionally, the expansion of 5G networks and the country’s focus on emerging technologies, such as quantum computing, will further increase the need for advanced chipsets and processors in the coming years.

France (2025 Market Size: USD 9.8 billion)

France is expected to reach a market size of USD 9.8 billion by 2025 in the chipsets and processors segment. France’s semiconductor market is growing steadily, driven by demand from the automotive, telecommunications, and aerospace industries. The French automotive industry, including major companies like Renault and Peugeot, continues to drive the need for advanced processors, particularly for electric and autonomous vehicles. France’s leadership in aerospace and defense also contributes significantly to the market, with advanced processors being integral to aviation technologies. Additionally, the increasing demand for AI applications and the rise of 5G infrastructure are pushing the growth of the chipset and processor market in the country. France’s strong commitment to semiconductor research and development, coupled with a growing focus on local manufacturing, further strengthens its position in the European semiconductor landscape.

Canada (2025 Market Size: USD 8.3 billion)

Canada is projected to see a chipset and processor market size of USD 8.3 billion by 2025. With a growing tech sector focused on AI, big data analytics, and the Internet of Things (IoT), Canada’s demand for chipsets and processors is on the rise. The country’s well-established electronics industry, coupled with increasing investments in high-tech manufacturing, supports the growth of the semiconductor market. Canada’s adoption of 5G networks and the expansion of data centers will also contribute to the growing demand for advanced processors. Additionally, Canada’s commitment to fostering innovation in emerging technologies like quantum computing, coupled with its vibrant startup ecosystem, creates significant opportunities in the chipset and processor market. As the country continues to invest in its technological infrastructure, its position in the global semiconductor market is expected to strengthen.

PESTEL Analysis of Chipset and Processors Market

Political

The chipset and processors market is significantly influenced by political factors, including government regulations, trade policies, and international relations. Geopolitical tensions, particularly between major players like the United States, China, and the European Union, can affect supply chains and the global distribution of semiconductors. For instance, trade restrictions or tariffs on semiconductor imports can disrupt manufacturing processes and lead to increased production costs. Additionally, governments are heavily investing in the semiconductor industry as part of national security and technological sovereignty efforts, such as the U.S. CHIPS Act, which encourages domestic semiconductor production and research. Political stability in key manufacturing regions like Taiwan, South Korea, and China is crucial for maintaining consistent supply chains, as the market is highly concentrated in these areas. Moreover, government policies that promote R&D and innovation in semiconductor technology, alongside regulatory frameworks for data privacy and technology standards, also shape the direction of this market. Any shifts in regulatory environments, such as stricter environmental standards or new intellectual property laws, can also impact market dynamics.

Economic

Economic factors play a pivotal role in the chipset and processors market, influencing both demand and production capabilities. The global demand for chips is highly correlated with the performance of major industries such as automotive, consumer electronics, telecommunications, and industrial automation. Economic growth in emerging economies, where digital transformation and infrastructure development are accelerating, leads to increased demand for processors and chipsets in smartphones, tablets, and computing devices. The COVID-19 pandemic highlighted the significance of semiconductors, with supply chain disruptions affecting the production of consumer electronics and automotive vehicles, creating an imbalance between supply and demand. Moreover, fluctuating raw material costs, such as those for silicon, metals, and rare earth elements, directly impact the cost structure of semiconductor manufacturers. The economic health of key manufacturing hubs such as Taiwan, South Korea, and China also determines the overall cost competitiveness of the global semiconductor industry. Additionally, as consumer spending rises in areas such as smart devices, 5G networks, and AI-powered technologies, the market for advanced chipsets and processors is expanding rapidly. However, the rising costs of semiconductor manufacturing, which require substantial capital investment, may drive consolidation among smaller players.

Social

Social factors, such as consumer preferences, lifestyle trends, and demographic changes, are important drivers in the chipset and processors market. As technology becomes increasingly embedded in everyday life, consumer demand for high-performance processors in smartphones, gaming consoles, and wearables is on the rise. The shift towards smarter, more connected devices in the form of IoT (Internet of Things) and smart homes has heightened the need for energy-efficient, compact, and powerful chipsets. Additionally, the growing demand for gaming and high-definition video content has driven advancements in high-performance processors, particularly in the gaming industry, where processing power is paramount. The social trend towards greater use of artificial intelligence (AI), machine learning, and data analytics also requires powerful chipsets capable of handling complex computations, which further accelerates market growth. The rise of remote work, online education, and telemedicine during the pandemic has also led to increased demand for laptops, tablets, and other computing devices, boosting the need for advanced processors. Furthermore, social awareness around environmental issues and the sustainability of technology production has led consumers to favor processors designed with lower environmental impact in mind.

Technological

The technological landscape of the chipset and processors market is evolving rapidly, with advancements in manufacturing processes, architecture, and design. Key developments such as the introduction of 7nm, 5nm, and even 3nm manufacturing nodes have led to smaller, more efficient chips that consume less power and offer higher performance. Innovations in AI and machine learning are driving the development of specialized chipsets, such as graphics processing units (GPUs) and tensor processing units (TPUs), which are optimized for specific tasks. Additionally, the development of new materials, such as graphene, and advancements in 3D chip stacking are contributing to the next generation of high-performance processors. The push toward 5G connectivity is another technological factor driving demand for advanced chipsets, as these networks require new processing technologies to handle faster data speeds and more simultaneous connections. The emergence of quantum computing, although still in its early stages, is expected to drive the future of semiconductor technology, requiring processors that can manage quantum data and computations. Furthermore, advancements in chip integration combining processing, memory, and communication functionalities into single-chip solutions are enabling more compact, efficient, and powerful devices across industries.

Environmental

Environmental factors are increasingly influencing the chipset and processors market, particularly in terms of sustainable manufacturing and energy efficiency. As concerns over electronic waste (e-waste) and the environmental impact of semiconductor manufacturing grow, there is a shift towards more eco-friendly production practices. Manufacturers are exploring ways to reduce the environmental footprint of semiconductor fabrication, such as using renewable energy sources, improving energy efficiency, and recycling materials. The extraction and processing of raw materials for semiconductors, such as rare earth metals, also raise environmental concerns, leading to greater emphasis on sourcing materials more sustainably. Additionally, as environmental regulations become stricter globally, semiconductor manufacturers are being required to comply with emissions and waste disposal standards. The growing trend of circular economy practices, where electronic products are designed for repair, reuse, or recycling, is also influencing the semiconductor industry. Furthermore, the push for energy-efficient devices has led to the development of low-power processors, which consume less electricity and generate less heat, contributing to reducing the carbon footprint of consumer electronics.

Legal

Legal factors have a significant impact on the chipset and processors market, especially concerning intellectual property (IP), data privacy regulations, and antitrust laws. The protection of chip designs through patents is essential for semiconductor companies, as these designs are critical to their competitive advantage. As the market becomes increasingly concentrated with a few dominant players such as Intel, AMD, and NVIDIA, antitrust concerns may arise, leading to regulatory scrutiny. Intellectual property litigation, particularly in the form of patent disputes, is a common issue in the semiconductor industry, with companies vying for control over cutting-edge technology. Additionally, data privacy laws, such as the European Union’s General Data Protection Regulation (GDPR), influence the design and use of processors in devices that collect and store personal data. As the use of artificial intelligence and facial recognition grows, legal frameworks around privacy and the use of sensitive data will shape processor design and adoption. Manufacturers are also subject to stringent product safety regulations, ensuring that semiconductors meet international standards and do not pose health or safety risks. Furthermore, as sustainability becomes a legal requirement, processors that comply with environmental standards and responsible sourcing regulations are increasingly in demand.

Key Players of the Chipset and Processors Market

Intel Corporation

Intel Corporation, a dominant player in the chipset and processors market, remains a leader in the design and manufacturing of semiconductors. With its wide range of microprocessors, including the Intel Core series and Xeon processors, Intel serves diverse industries, from consumer electronics to data centers. Intel’s innovation in high-performance processors for gaming, computing, and AI applications has kept it at the forefront of the semiconductor industry. The company’s continuous investment in new technologies, such as its 10nm and 7nm process nodes, and its focus on power efficiency and integration of artificial intelligence into its chips, have strengthened its position. Intel’s shift towards heterogeneous computing, which integrates CPUs, GPUs, and AI accelerators in a single chip, further underscores its commitment to delivering cutting-edge solutions for the evolving needs of the chipset and processors market.

Advanced Micro Devices (AMD)

Advanced Micro Devices (AMD) has made significant strides in the chipset and processors market, offering a range of high-performance CPUs and GPUs for consumer and enterprise applications. AMD’s Ryzen series of processors and EPYC server processors have gained considerable market share by delivering strong performance at competitive prices. The company’s move to a 7nm process technology and its partnership with foundries like TSMC have allowed AMD to develop energy-efficient and cost-effective chips that rival Intel’s offerings. AMD’s continuous innovation in multi-core processing, high-speed memory integration, and gaming performance has positioned the company as a strong competitor in the semiconductor market. Furthermore, AMD’s growing presence in the data center space with its EPYC processors has bolstered its position in the global chipset and processors market.

NVIDIA Corporation

NVIDIA Corporation is best known for its dominance in the GPU segment, but its strategic shift towards AI and parallel computing has made it a significant player in the broader chipset and processors market. NVIDIA’s graphics processing units (GPUs) are widely used in gaming, AI, data centers, and autonomous driving applications. The company’s acquisition of Mellanox Technologies has also expanded its presence in the high-performance computing and data center sectors. NVIDIA’s emphasis on AI-driven technologies and its role in the development of AI chips for deep learning, machine learning, and data analytics have made it a key player in the chipset and processors market. With advancements in its CUDA parallel computing platform and the release of GPUs optimized for AI workloads, NVIDIA is well-positioned for continued growth in the semiconductor market.

Qualcomm Incorporated

Qualcomm Incorporated is a leading provider of chipsets for mobile devices, automotive applications, and IoT solutions. The company’s Snapdragon mobile platforms power a wide array of smartphones, offering advanced processing capabilities, energy efficiency, and integrated 5G connectivity. Qualcomm’s continued focus on the development of 5G-enabled processors and the expansion of its chipset portfolio into automotive and IoT devices has helped the company maintain its competitive edge. Qualcomm’s innovations in AI, wireless technologies, and mobile processing are integral to its strategy of expanding its reach in the growing chipset and processors market. With the proliferation of 5G networks and IoT devices, Qualcomm’s solutions are expected to play a key role in powering next-generation technologies.

Broadcom Inc.

Broadcom Inc. is a leading supplier of semiconductor solutions for a variety of applications, including broadband, data centers, wireless communications, and enterprise storage. The company’s chipsets are widely used in networking equipment, smartphones, and consumer electronics. Broadcom has been a key player in the development of 5G technologies, offering integrated solutions for mobile and wireless communications. Its acquisition of CA Technologies and Symantec’s Enterprise Security business has allowed Broadcom to expand into new sectors, enhancing its position in the enterprise and data center markets. Broadcom’s focus on high-speed data processing and its ability to deliver high-performance chipsets for multiple applications have strengthened its presence in the global chipset and processors market.

Apple Inc.

Apple Inc. has increasingly become a major player in the chipset and processors market through its custom-designed ARM-based processors, such as the M1 and M2 chips. These processors, used in Apple’s Mac computers and mobile devices, have garnered widespread attention due to their high performance, energy efficiency, and seamless integration with Apple’s ecosystem. By designing its own chips, Apple has been able to optimize performance for its devices, offering faster processing speeds and longer battery life compared to traditional x86-based processors. The company’s investment in custom silicon has allowed it to differentiate itself in the market and gain more control over its product development, positioning Apple as a key player in the semiconductor industry.

TSMC (Taiwan Semiconductor Manufacturing Company)

While TSMC is not a direct manufacturer of chipsets or processors, it plays a crucial role as the world’s largest semiconductor foundry, producing chips for companies like Intel, AMD, Qualcomm, and Apple. TSMC’s advanced manufacturing processes, including its 5nm and 3nm nodes, have allowed its clients to develop cutting-edge processors that power a wide range of devices, from smartphones and laptops to servers and IoT devices. TSMC’s ability to deliver high-performance, energy-efficient chips at scale has made it a cornerstone of the global chipset and processors market. As the demand for smaller, more powerful chips increases, TSMC’s role as a leading foundry will continue to be critical in driving the growth of the semiconductor market.

The Impact of Trump Tariff on Chipset and Processors Market

The Trump administration’s tariffs on Chinese imports had a pronounced and wide-ranging impact on the chipset and processors market, a critical segment of the broader semiconductor industry. This market includes central processing units (CPUs), graphics processing units (GPUs), system-on-chips (SoCs), and various microcontrollers that power everything from smartphones and computers to vehicles, industrial equipment, and IoT devices. While the United States has traditionally led in chipset design, much of the manufacturing, assembly, testing, and sourcing of raw materials and components has relied heavily on Asian supply chains, including China. When the administration imposed tariffs ranging from 10% to 25% on hundreds of billions of dollars' worth of Chinese imports, a significant share of semiconductor components, printed circuit boards (PCBs), and packaging materials were affected. These tariffs disrupted established procurement strategies, increased input costs, and introduced considerable uncertainty into the production timelines of major U.S. tech firms.

The immediate impact was seen in the form of cost escalations across the chipset value chain. U.S. companies such as Intel, AMD, Qualcomm, and Nvidia, though primarily involved in design, relied on contract manufacturers and suppliers based in China for parts of their production or component sourcing. The tariffs raised the import costs of not just finished chip modules but also critical sub-components, such as substrates, memory chips, and other passive elements. These added costs were often passed down the supply chain, increasing the pricing pressure on OEMs (original equipment manufacturers) and system integrators who incorporated these chipsets into final consumer or enterprise-grade products. This cost burden, in turn, trickled down to end users, contributing to the broader inflationary pressures seen in electronics and IT hardware during that period.

Furthermore, the geopolitical uncertainty created by the tariffs forced many U.S. semiconductor firms to reassess their manufacturing footprints and supply dependencies. Some companies began shifting production away from China to other Southeast Asian nations like Vietnam, Malaysia, and the Philippines, or considered scaling operations in Taiwan and South Korea. However, these shifts were not without challenges. Establishing new supply chains required significant capital investment, workforce training, and overcoming logistical and regulatory hurdles. Additionally, alternative manufacturing hubs often lacked the same scale and efficiency as Chinese factories, which made it difficult to match existing production speeds and volumes without incurring higher base costs. For small and mid-sized chip design firms, the burden of relocation and supplier renegotiation was especially difficult, leading to project delays and tighter R&D budgets.

In the long term, the tariffs and escalating U.S.-China tech tensions accelerated broader trends toward localization and technological self-reliance. The U.S. government and semiconductor industry began to advocate for greater investment in domestic chip manufacturing and R&D capabilities. Initiatives such as the CHIPS and Science Act were introduced in part as a response to these pressures, aiming to reduce dependency on foreign especially Chinese supply chains and to strengthen the resilience of the U.S. semiconductor ecosystem. Meanwhile, the tariffs also influenced global corporate strategy, as tech companies moved toward supply chain diversification, multi-sourcing models, and more robust risk management planning to prepare for future geopolitical disruptions.

The Trump-era tariffs on Chinese imports significantly disrupted the chipset and processors market by increasing costs, complicating supply logistics, and prompting widespread reevaluation of global sourcing strategies. While these tariffs posed short-term challenges for production and pricing stability, they also catalyzed longer-term structural changes in how chipmakers approach manufacturing, supplier relationships, and geopolitical risk. The industry emerged from the experience more cautious, but also more committed to building agile, diversified, and locally fortified supply networks, marking a critical turning point in the evolution of the global semiconductor landscape.

Recent developments in Chipset and Processors Market

In March 2025, Qualcomm unveiled three new Snapdragon G-series chips G3 Gen 3, G2 Gen 2, and G1 Gen 2 designed for handheld gaming devices. The G3 Gen 3 offers 30% faster CPU and 28% better GPU performance over its predecessor, supports Unreal Engine 5's Lumen lighting system, and enables QHD+ displays at 144Hz with Wi-Fi 7 connectivity.

(Source:https://www.indiatoday.in/technology/news/story/qualcomm-unveils-three-new-snapdragon-g-series-chips-for-handheld-gaming-devices-2695000-2025-03-18)

In April 2024, Google Cloud unveiled its first custom Arm-based CPU, the Axion Processor, designed for data centers. Built on Arm's Neoverse V2 architecture and integrated with Google's Titanium system, Axion offers up to 30% better performance than existing Arm-based instances and up to 60% greater energy efficiency compared to current x86-based instances.

(Source:https://cloud.google.com/blog/products/compute/introducing-googles-new-arm-based-cpu)

Conclusion

The global chipset and processors market is poised for steady growth, fueled by increasing demand for advanced technologies across industries such as consumer electronics, automotive, telecommunications, and cloud computing. Valued at USD 441.2 billion in 2025, the market is projected to reach USD 609.4 billion by 2030, reflecting a compound annual growth rate (CAGR) of 4.1%. As technological innovations continue to drive demand for faster, more efficient, and higher-performing chips and processors, the market is well-positioned for substantial growth in the coming years.

The market is primarily driven by the rising adoption of artificial intelligence (AI), the Internet of Things (IoT), 5G technology, and the increasing use of processors in a wide range of devices, from smartphones and personal computers to autonomous vehicles and industrial machinery. The demand for high-performance computing, coupled with the growth of data centers and cloud infrastructure, is driving significant advancements in both chipsets and processors. As more industries rely on computational power to enable automation, machine learning, and big data analytics, the role of chipsets and processors becomes more critical. The semiconductor segment, which includes application-specific integrated circuits (ASICs), graphics processing units (GPUs), and central processing units (CPUs), is expected to grow at a strong pace. The CPU market, fueled by continued advancements in mobile computing, gaming, and personal computing, is anticipated to witness a steady growth rate of 4.2%. Similarly, the GPU market, essential for high-performance gaming, data centers, and AI-driven applications, is expected to expand at a CAGR of 4.6%. Both of these segments are essential for addressing the rising demand for processing power and performance across various applications.

Asia-Pacific leads the global chipset and processors market, accounting for over 40% of global demand. The region's dominance is attributed to the strong presence of semiconductor manufacturers such as Taiwan Semiconductor Manufacturing Company (TSMC), Samsung Electronics, and Intel, along with high demand for consumer electronics and technology products across China, Japan, and South Korea. The growing adoption of smartphones, IoT devices, and automotive electronics is driving the expansion of this market. Moreover, the shift towards advanced semiconductor fabrication technologies, including 5nm and 3nm processes, is contributing to regional market growth. Asia-Pacific is expected to grow at a CAGR of 4.5%, supported by advancements in semiconductor manufacturing processes and continued investment in research and development.

North America follows closely, with the United States being home to some of the world's largest semiconductor companies, including Intel, AMD, and Nvidia. North America is seeing increasing demand for high-performance processors in cloud computing, gaming, and AI applications. The U.S. government's focus on promoting semiconductor manufacturing through initiatives such as the CHIPS Act is further driving investment and innovation in the region. The North American chipset and processors market is projected to grow at a CAGR of 3.8%, supported by technological advancements in data processing and cloud infrastructure.