United States Discrete Semiconductors - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The United States Discrete Semiconductors Market size is estimated at USD 3.97 billion in 2024, and is expected to reach USD 5.65 billion by 2029, growing at a CAGR of 7.29% during the forecast period (2024-2029).

Key Highlights

• The United States is one of the prominent markets due to its large automotive and other industries that consume discrete semiconductors. The semiconductor industry dramatically relies on the United States as a manufacturing, design, and research hub. The country's influence plays a crucial role in stimulating the export of electronic equipment and fostering the growth of various end-user industries. These industries, including consumer electronics, communication, and automotive, heavily rely on discrete semiconductors as essential components.
• The rising demand for passenger and advanced vehicles has led to substantial growth in the automotive industry in the country. The market has been primarily driven by the high population density, resulting in an increased utilization of passenger vehicles. Consequently, there is an ongoing requirement for cost-effective and top-notch components in the automotive sector, thus driving the market's growth.
• Being home to some of the major players in the market, such as Wolfspeed Inc. and Microchip Technology Inc., the country also continues to witness significant product innovation. For instance, in June 2024, Navitas Semiconductor introduced the Gen-3 Fast (G3F) 650V and 1200V SiC MOSFETs designed to enhance fast switching speed, high efficiency, and increased power density for AI data center power supplies, on-board chargers (OBCs), fast EV roadside super-chargers, and solar/energy-storage systems (ESS).
• Due to several factors, the demand for integrated circuits has soared recently. ICs offer numerous advantages over discrete semiconductors, such as compactness, increased functionality, and higher performance. This has led to the widespread adoption in various applications, ranging from automotive to consumer electronics and industrial sectors. Advancements in semiconductor manufacturing technologies, such as the miniaturization of transistors through Moore's Law, have enabled the production of increasingly complex ICs at lower costs, thus restraining the market's growth.
• Macroeconomic factors like rising tensions between the United States and China have led to supply shortages in microchips and raw materials. This disruption in the engineering supply chain has significantly impacted product availability, driving up costs industry-wide. Consequently, discrete semiconductor manufacturers have been prompted to reassess their supply chain strategies and reduce risks.

United States Discrete Semiconductors Market Trends

Automotive Sector to Witness a Significant Growth

• The shift toward electrification in the automotive sector drives the need for advanced semiconductor components. With the United States emerging as a critical player in the EV (electric vehicle) market, the nation has witnessed a significant surge in EV sales in recent years. In 2023, Cox Automotive reported that approximately 1.19 million BEVs (battery electric vehicles) were sold in the United States, with Tesla models representing 55.1% of total sales. Ford, the second-ranked automaker, only accounted for 6.1% of US battery electric vehicle sales.
• The rising expansion of automotive plants in the country is expected to drive the market's growth. For instance, in January 2024, Lucid Motors revealed plans to enlarge its Casa Grande, Arizona, assembly plant by approximately 3 million square feet. This expansion encompasses adding a new manufacturing facility, warehouse, and vertically integrated stamping facility. As a result, the expanded plant will encompass a total area exceeding 3.85 million square feet. This crucial expansion will enable the company to manufacture its highly anticipated Gravity SUV, set to be launched in late 2024.
• The automotive sector's escalating power needs necessitate higher current draws from conventional automotive supplies. Consequently, there is a surging demand for proficient and effective automotive MOSFETs. Moreover, with the tightening regulations in the United States to curb CO2 emissions, the landscape for automotive MOSFETs is notably optimistic.
• The rising need for advanced vehicle control and combustion technology is a crucial driver behind the demand surge for Automotive MOSFETs (metal-oxide-semiconductor field-effect transistors). These components are pivotal in contemporary automotive electronics, especially powertrain control and other vehicle systems. The surging demand for electric (EV) and hybrid vehicles (HEV) in the United States is fueling growth in the discrete semiconductors in the automotive market, opening avenues for innovation and business expansion.

Power Transistors to Hold Significant Market Share

• Technological advancements in power transistors, such as MOSFET design and manufacturing, are being propelled by the rising demand for high-performance MOSFETs. These sought-after features include low on-resistance, high-speed switching, and improved thermal management.
• For instance, in March 2024, Infineon introduced the first product in its new advanced MOSFET technology, OptiMOS 7 80 V. The OptiMOS 7 80 V offering perfectly matches the upcoming 48 V board net applications. It is designed specifically for the high performance, high quality, and robustness needed for demanding automotive applications like automotive DC-DC converters in EVs, 48 V motor control, for instance, electric power steering (EPS), 48 V battery switches, and electric two- and three-wheelers.
• In December 2023, Infineon Technologies AG responded to the call for downsizing and integration by introducing the 4.5 kV XHP 3 IGBT modules. These modules are set to transform medium-voltage drives (MVD) and transportation applications, specifically, those operating at 2000 V-3300 V AC in 2, and 3-level topologies.
• In the United States, the increasing demand for consumer electronic appliances like UPSs, power conditioners, air conditioners, etc., which use discrete IGBT types for lower-current applications, is credited with driving the growth of the discrete IGBT market. Discrete IGBTs have been found to have the lowest power losses in consumer goods, which is anticipated to be a key factor influencing the segment's growth in the market.

United States Discrete Semiconductors Industry Overview

The US discrete semiconductors market is fragmented, with the presence of major players like Infineon Technologies AG, STMicroelectronics NV, On Semiconductor Corporation, Vishay Intertechnology Inc., and Microchip Technology Inc. Players in the market are adopting various market strategies such as partnerships, mergers, innovations, investments, and acquisitions to enhance product offerings and gain sustainable competitive advantage.

January 2024: Infineon Technologies partnered with Sinexcel Electric, an energy storage company. Infineon will supply Sinexcel with its latest 1200V CoolSiC MOSFET semiconductor devices in this collaboration. These will be complemented by Infineon's EiceDRIVER compact 1200V single-channel isolated gate drive ICs, which aim to enhance the efficiency of energy storage systems. The SiC power solution is pivotal in upcoming green energy production and storage applications.

November 2023: Nexperia BV partnered strategically with Mitsubishi Electric Corporation to develop silicon carbide (SiC) MOSFETs jointly. Through this partnership, Nexperia and Mitsubishi Electric joined forces to push the energy efficiency and performance of SiC wide bandgap semiconductors to the next level while also responding to the rapidly growing demand for high-efficiency discrete power semiconductors.

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