Australia Semiconductor Market Size, Share, Growth Analysis Report and Forecast Trends 2024-2032

Australia Semiconductor Market Trends

The Australia semiconductor market is supported by government incentives such as R&D funding and tax breaks, which drive innovation. A highly skilled engineering and technology workforce further strengthens sector growth. Continued investment in R&D improves Australia’s global competitiveness, while its strategic location facilitates access to key semiconductor supply chains and export markets. In August 2023, the Australian government increased funding for R&D in the semiconductor sector, particularly for advanced manufacturing and innovations within the clean energy market. This funding aims to support startups and foster collaborations with universities to accelerate semiconductor technology development in Australia.

The Australia semiconductor market revenue is further boosted by its stable economy, low inflation, and trade agreements that enhance investment and exports. The growing emphasis on sustainable technologies presents opportunities for clean-tech applications, while universities play a key role in driving innovation, establishing Australia as a leader in semiconductor research. In July 2024, Silicon Quantum Computing, based in Sydney, announced a significant breakthrough in quantum computing semiconductors, advancing silicon-based quantum chips. This innovation positions Australia at the forefront of global quantum computing, offering vast potential for future technology applications.

Australia Semiconductor Market Growth

The Australia semiconductor market benefits from robust infrastructure, including reliable telecommunications and digital networks, which facilitate industry expansion. Effective collaboration between the government and private sector helps overcome challenges and stimulates growth. Rising demand for consumer electronics, as well as the shift towards electric and autonomous vehicles, increases semiconductor demand. Flexible regulations foster innovation and support business development. In March 2023, the Australian government revealed plans to establish a National Semiconductor Manufacturing Hub to enhance local semiconductor chip production. The hub collaborates with top universities and private companies to drive innovation in advanced semiconductor technologies and manufacturing processes.

The Australia semiconductor market growth is further supported by the country’s increasing focus on cybersecurity and defence technology, which boosts demand in these sectors. The growing need for energy-efficient products drives innovation within the semiconductor industry. Australia’s pool of skilled STEM graduates contributes to ongoing sector growth. A business-friendly environment, low bureaucracy, and strong global supply chain connections further bolster the semiconductor sector. In June 2024, Carbon Clean, an Australian startup, launched an energy-efficient semiconductor manufacturing technology designed to reduce carbon emissions. This innovative technology uses advanced semiconductor materials to optimise industrial processes, promoting sustainability for manufacturers in Australia and abroad.

Australia Semiconductor Market Insights

• In 2023, Australia imported Diodes, Transistors, and other semiconductor devices valued at USD 1.36 billion from China, according to data from the United Nations Comtrade database on international trade.
• The International Trade Administration reports that Australia's domestic market saw a rise in the sales of new passenger cars, SUVs, and commercial vehicles, increasing to 1,049,831 units in 2021 from 916,968 in 2020. This surge in vehicle sales has consequently boosted demand for semiconductors.
• According to industry reports, the market is further supported by the fact that mobile phone services now cover 99% of the Australian population.

Industry News

December 2023

Telstra, in partnership with Qualcomm, launched a 5G smart modem in Australia. Powered by cutting-edge semiconductors, the modem is designed to improve connectivity and aid the expansion of 5G networks, ultimately enhancing mobile broadband speeds for Australian consumers.

August 2023

Researchers at the University of Sydney Nano Institute revealed a new compact silicon chip that integrates electronics and photonics, aiming to transform Australia’s semiconductor sector. This breakthrough expands radio-frequency bandwidth, improves data control, and provides a versatile solution for advanced radar, satellites, wireless networks, and future 6G and 7G telecommunications.

Australia Semiconductor Market Drivers

Increased Government Support and Funding

The growth of the Australia semiconductor market is being significantly driven by government initiatives, including funding and tax incentives designed to promote R&D and innovation. The government’s focus on boosting local semiconductor production and advancing technological infrastructure has led to increased collaboration between the public and private sectors. Investment in domestic manufacturing, combined with strategic partnerships with global semiconductor companies, is accelerating Australia’s integration into the global semiconductor supply chain. These efforts aim to reduce dependence on imports and strengthen the Australian tech industry, particularly in areas such as quantum computing, clean energy, and telecommunications. In 2023, the Australian government unveiled a National Semiconductor Strategy to enhance domestic semiconductor manufacturing, research, and innovation. This strategy includes measures such as funding for R&D, incentives for local manufacturers, and partnerships with global semiconductor leaders.

Focus on Advanced Manufacturing Capabilities

Advanced manufacturing techniques are a key trend in the Australia semiconductor market, with a strong emphasis on producing high-quality, precision components for sectors such as telecommunications, automotive, and clean energy. Local manufacturers are adopting cutting-edge technologies, including 3D printing, AI-driven design, and automation, to enhance semiconductor production. There is also a strong focus on developing energy-efficient and miniaturised semiconductor components, which are essential for meeting the growing demand in consumer electronics, automotive, and industrial sectors. This shift is positioning Australia as a potential leader in advanced semiconductor manufacturing, with an emphasis on sustainability and innovation. In December 2022, the CSIRO (Commonwealth Scientific and Industrial Research Organisation) opened a new microelectronics manufacturing centre aimed at accelerating the development and production of semiconductors for consumer electronics and defence applications, offering vital support to Australia’s semiconductor industry.

Opportunities in the Australia Semiconductor Market

Growth in Semiconductor-based Innovations in Quantum Computing

The demand for the Australia semiconductor market is rising as the country increasingly positions itself as a global leader in quantum computing research, with semiconductor technologies playing a crucial role. Quantum computing relies on the development of specialised chips capable of processing quantum information, and Australian research institutions are at the forefront of this field. Start-ups and academic bodies, such as Silicon Quantum Computing in Sydney, are leading innovations in silicon-based quantum chips, which have the potential to revolutionise computing power across industries from healthcare to cryptography. This growing focus on quantum computing is establishing Australia as a key player in the future of the global semiconductor industry. In May 2023, Q-CTRL, an Australian quantum computing startup, unveiled its next-generation quantum processor, which uses semiconductor technology to improve the performance and stability of quantum systems marking a significant milestone in Australia’s expanding quantum tech landscape.

Market Restraints

The Australia semiconductor market faces several constraints despite its growth. These include limited domestic manufacturing capacity, as Australia lacks large-scale fabrication plants and relies on imports. The supply chain is vulnerable to global disruptions, and high production costs make local companies less competitive. There's a shortage of skilled talent, especially in semiconductor design and production, while gaps in advanced manufacturing technologies, such as EUV lithography, hinder progress. The sector also relies heavily on government funding and foreign investment for R&D.

Australia competes with countries like China, Taiwan, and South Korea, which are advancing semiconductor technologies faster. Trade barriers and regulatory challenges further complicate market access. Addressing these issues will require significant investment in infrastructure, workforce development, and international partnerships.

Australia Semiconductor Industry Segmentation

“Australia Semiconductor Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Components

• Memory devices
• Logic devices
• Analog IC
• MPU
• Discrete power devices
• MCU
• Sensors
• Others

Market Breakup by Material Used

• Silicon Carbide
• Gallium Manganese Arsenide
• Copper Indium Gallium Selenide
• Molybdenum Disulfide
• Others

Market Breakup by End Use

• Automotive
• Industrial
• Data Centre
• Telecommunication
• Consumer Electronics
• Aerospace and Defense
• Healthcare
• Others

 Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Semiconductor Market Share

By Components Insights

Memory devices are vital to the growth of the Australia semiconductor market, facilitating efficient data storage and retrieval across multiple industries. With rising demand for high-performance computing, cloud services, and consumer electronics, memory devices are key to supporting sectors such as automotive, telecommunications, and healthcare in Australia. In March 2024, Micron Technology launched new NAND flash memory solutions in Australia, offering improved data storage capacity and speed. These products cater to both consumer electronics and enterprise-level data storage needs, meeting Australia’s increasing demand for cloud computing and data centres.

According to the Australia semiconductor market analysis, logic devices occupy a significant share in the market, powering microprocessors and integrated circuits for computing and electronic systems. These devices are crucial in sectors like telecommunications, defence, automotive, and IoT. With growing demand for AI, 5G, and automation technologies, logic devices are critical to driving technological progress in Australia. In October 2023, AMD introduced its latest processors in Australia, designed for high-performance computing in gaming, telecommunications, and cloud infrastructure. These advanced logic devices offer enhanced speed and efficiency, supporting Australia’s digital transformation across industries.

By Material Used Analysis

Silicon carbide (SiC) presents significant opportunities for the Australia semiconductor market, especially in power electronics and electric vehicles (EVs). SiC enhances efficiency and heat resistance in power devices, improving performance in industries such as automotive, renewable energy, and telecommunications, supporting Australia’s transition to cleaner technologies. June 2024 – STMicroelectronics launched a new range of SiC power devices in Australia, aimed at boosting energy efficiency in EVs and renewable energy systems. This launch reflects STMicroelectronics' commitment to advancing sustainability within Australia's automotive and clean energy sectors.

According to the Australia semiconductor market report, gallium manganese arsenide (GaMnAs) is gaining popularity due to its potential in spintronic applications. Ideal for quantum computing, sensors, and advanced electronics, it offers improved magnetic properties. This material is expected to bolster Australia's growth in quantum technology, telecommunications, and advanced research. March 2023 – Researchers at the University of Melbourne introduced a breakthrough GaMnAs semiconductor designed for advanced electronics and sensors. The innovation is poised to revolutionise spintronic devices in Australia, offering high-speed processing and energy efficiency for use in telecommunications and medical technologies.

By End-Use Insights

The automotive sector is a key driver propelling the Australia semiconductor market development, particularly with electric vehicles (EVs), autonomous driving systems, and in-car electronics. Semiconductors play a vital role in power management, sensor systems, and connectivity, helping Australia shift towards a greener and more technologically advanced automotive industry while reducing emissions. In July 2024, Tesla announced the integration of advanced semiconductor chips into its latest electric vehicles (EVs) in Australia. These chips enhance battery management, improve power efficiency, and support autonomous driving features. Tesla’s innovation strengthens Australia’s push for greater EV adoption, contributing to a sustainable automotive future.

The Australia semiconductor market is also crucial to the aerospace and defence sectors, driving high-performance electronics, radar systems, and communication technologies. As the country focuses on bolstering its defence and space capabilities, semiconductors will be essential for enhancing security, communication, and surveillance systems. In January 2024, The Australian National University (ANU) launched a new semiconductor-based satellite communication system, supporting Australia’s expanding space and defence initiatives. This technology improves real-time communication and data transmission for military and commercial aerospace sectors, marking a significant advancement in Australia’s space capabilities.

Australia Semiconductor Market Regional Insights

New South Wales Semiconductor Market Regional Insights

New South Wales (NSW) benefits from a thriving tech ecosystem, with universities and research institutions driving semiconductor innovation. The state’s strong infrastructure, skilled workforce, and strategic location further support the growth of semiconductor production and development. In April 2024, the University of Sydney’s research centre unveiled advanced semiconductor materials for quantum computing, strengthening Australia's position in the global tech market. This breakthrough is expected to accelerate innovation in AI and communications.

Queensland Semiconductor Market Trends

According to the Australia semiconductor industry analysis, Queensland’s semiconductor market is flourishing, driven by demand in clean-tech, automotive, and consumer electronics. The state's emphasis on sustainability, along with rising investment in research, boosts local manufacturing and expands global export opportunities. In March 2024, the Queensland government launched an initiative to invest in semiconductor R&D for clean energy and automotive applications, aimed at increasing the state's production capabilities.

Western Australia Semiconductor Market Dynamics

Western Australia's semiconductor market benefits from growing demand in mining, energy, and defence industries. The state’s abundant natural resources and focus on innovation foster semiconductor growth, while its strategic location enhances global trade opportunities. In February 2023, the Western Australian Department of Industry unveiled a new semiconductor production facility designed to support local defence and energy projects, strengthening WA's role in high-tech manufacturing.

Competitive Landscape

The Australia semiconductor market key players design and manufacture semiconductor and power management solutions. Specialising in power conversion, these companies develop highly efficient and innovative products for industries such as telecommunications, automotive, industrial, and consumer electronics. Known for their expertise in creating energy-efficient solutions, they provide high-performance, compact, and cost-effective designs. Focused on advanced technologies and R&D, these companies play a significant role in the semiconductor sector, with products that enhance the performance, reliability, and sustainability of electronic systems. Operating globally, they deliver solutions for both original equipment manufacturers (OEMs) and design engineers across various industries.

Key Industry Players

The Silanna Group: Founded in 1984, The Silanna Group is an Australian technology company headquartered in Sydney, specialising in the design and development of semiconductors and power solutions. The company focuses on advanced technologies for power conversion, telecommunications, and automotive applications, with a global presence in the semiconductor industry.

Intel Corporation: Established in 1968 and headquartered in Santa Clara, California, Intel Corporation is a global leader in semiconductor manufacturing. Known for its microprocessors and innovation in computing, Intel has been at the forefront of developing technologies that power computers, data centres, and other devices worldwide.

Taiwan Semiconductor Co. Ltd.: Founded in 1987 and headquartered in Hsinchu, Taiwan, TSMC is the world's largest dedicated independent semiconductor foundry. TSMC manufactures chips for major technology companies, including Apple, AMD, and Nvidia, driving advancements in electronics, computing, and mobile industries globally.

NVIDIA Corporation: Founded in 1993 and headquartered in Santa Clara, California, NVIDIA Corporation is a leader in graphics processing units (GPUs) and AI hardware. Initially known for its gaming graphics cards, NVIDIA has expanded into AI, data centre solutions, and self-driving car technologies, revolutionising several industries.

Recent Developments

August 2023

AMD introduced its latest Synaptic semiconductor chip series in Australia, designed to enhance high-performance computing systems. Tailored for AI and machine learning applications, these chips bolster AMD’s position in the Australian semiconductor market, serving tech-centric industries.

December 2022

Boomalong Technologies, Australia's inaugural Indigenous semiconductor start-up, was launched in December 2022. The company specialises in sustainable semiconductor technologies aimed at the renewable energy and telecommunications sectors, providing innovative solutions to support Australia's expanding tech industry.