PwC’s comprehensive report, “Semiconductor and Beyond,” released in 2026, provides a strategic outlook on the global semiconductor industry amid rapid transformations driven by AI, geopolitical tensions, and supply chain shifts. Structured into four sections—Foreword, Demand Analysis, Supply Analysis, and What’s Next?—the 104-page document offers insights for industry leaders, policymakers, and businesses navigating this critical sector. Authored by experts like Global Semiconductors Leader Glenn Burm, it emphasizes semiconductors’ role in powering innovation across automotive, server/network, home appliances, computing devices, and industrial applications.

The Foreword sets the stage, highlighting the industry’s evolution shaped by AI advancements, increased government investments in domestic production, and efforts to enhance supply chain resilience. Semiconductors are deemed indispensable for sectors like automotive, healthcare, and energy, with priorities shifting toward technology sovereignty and risk mitigation amid export controls and trade alliances.

In the Demand Analysis, titled “Semiconductors Power Innovation and Everyday Life,” PwC projects the semiconductor market to grow from $0.6 trillion in 2024 to over $1 trillion by 2030, at a CAGR of 8.6%. This growth is fueled by end-market dynamics across five key sectors. Server and Network leads with an 11.6% CAGR, driven by generative AI services and data center expansions. Automotive follows at 10.7%, propelled by electric vehicles (EVs), autonomous driving, and advanced driver-assistance systems (ADAS), with EV semiconductor content growing at 11.3% CAGR versus -3.1% for internal combustion engines. Home Appliances anticipates a 5.6% CAGR, boosted by AI-powered devices like smart refrigerators and TVs, with connectivity chips growing at 11.6%. Computing Devices expects 8.8% growth, led by AI-capable chips in high-end smartphones (75.6% CAGR) and PCs (29.3% CAGR). Industrial applications project 8.8% growth, supported by renewable energy (13.4% CAGR), smart agriculture (17.3%), and medical devices (5.3%). The analysis uses bubble charts to categorize applications by market CAGR and content growth, identifying “leap” opportunities in areas like automotive HPC and AI connectivity.

The Supply Analysis, “The Race for Semiconductor Supremacy,” examines value chain dynamics, noting U.S. dominance in design, Asia’s fabrication edge, and Southeast Asia’s packaging leadership. Geopolitical shifts are reshaping chains, with investments focusing on leading nodes. Foundry capacity is expected to rise 1.7x by 2030, with ≤7nm nodes at 8% CAGR. High-bandwidth memory (HBM) penetration surges from 14% to 40%, market size at 27.8% CAGR. Materials market grows to $97 billion at 5.1% CAGR, while advanced packaging reaches $76 billion at 10.6%. Regional shifts show China at 7.5% CAGR, USA at 12.9%, and ASEAN at 9.9%. Wide-bandgap materials like GaN (53.5% CAGR) and SiC (27.0%) highlight power electronics growth.

The “What’s Next?” section explores opportunities beyond 2030, evaluating technologies like AI integration and advanced materials. It assesses feasibility via maturity scores, market potential by 2030 size and CAGR, and investment scales over five years. Quantitative insights guide entrants on uncertainties and future dynamics.

Overall, PwC’s report underscores the semiconductor industry’s pivotal role in global innovation and economic security. With AI accelerating demand and geopolitics disrupting supply, companies must prioritize resilience, diversification, and R&D. The outlook warns of disruptions but highlights growth in AI, EVs, and renewables, urging strategic adaptations for supremacy. As semiconductors evolve, PwC positions itself as a partner for sustainable growth, offering expertise in supply chain optimization and innovation.

Here is the full report.

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