The programmable silicon market includes a wide range of reusable silicon chips that can be reprogrammed to behave as multiple different devices. Programmable silicon chips are broadly categorized into field-programmable gate arrays (FPGAs) and complex programmable logic devices (CPLDs), which allow efficient integration of both simple and complex logic functions and accelerate time-to-market. The adoption of programmable silicon solutions has increased in applications such as networking, wireless communications, industrial controls, automotive and consumer electronics owing to their dynamic reprogrammability and flexibility to support standards changes and protocol updates via software upgrades.

The Global programmable silicon market is estimated to be valued at US$ 104.99 Bn in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the programmable silicon market are Becton, Dikinson and Company, B. Braun Melsungen AG, Nipro Corporation, ICU Medical, Inc., Baxter International Inc., Terumo Corporation, Smiths Medical, Fresenius Kabi AG, Eli Lilly and Company, JMS Co. Ltd., and NewIV Medical, Inc. These players are focusing on developing innovative programmable solutions to gain a competitive edge in the market. For instance, in 2022, Xilinx launched its latest FPGAs namely Virtex UltraScale+ VU19P to target communication, industrial and automotive applications that require high-performance transceivers.

The growing demand for consumer electronics and automation across industries has been fueling the adoption of programmable silicon chips. Programmable logic can be customized for a particular application or target market. This allows manufactures to increase product differentiation while reducing costs and time to market. The ability of programmable silicon to support evolving communication standards is another key factor driving their demand.

The Programmable Silicon Market is witnessing significant growth in Asia Pacific and North America. The presence of large semiconductor foundries and electronic product manufacturers is attracting major programmable silicon vendors to establish manufacturing facilities and R&D centers in the region. Furthermore, the rising demand for IoT-based smart applications and infrastructure modernization are propelling the programmable silicon market growth globally.

Market drivers

The growing adoption of Internet of Things (IoT) is a key driver augmenting the programmable silicon market. Programmable logic devices play a crucial role in various IoT applications ranging from edge devices to gateways and communication infrastructure. Their dynamic reconfiguration allows supporting multiple communication protocols through software upgrades and simplifies development of complex IoT systems. Additionally, the rising need for improved connectivity, interoperability and scalability is steering the deployment of programmable logic in IoT networks, which is fueling market revenue.

Impact of geopolitical situation on Programmable Silicon Market growth:

The programmable silicon market is witnessing significant changes owing to the prevailing geopolitical conditions across major regions. With the ongoing Russia-Ukraine war and rising geo-political tensions between the US and China, there has been tremendous disruptions in global supply chains. Both Russia and Ukraine are major suppliers of rare-earth minerals and gas that are crucial raw materials used in the manufacturing of programmable silicon chips. The supply shortages caused by the war have constrained the production capabilities of major silicon wafer and chip manufacturers. Additionally, the sanctions imposed on Russia by western nations and counter measures have made trade and business more difficult. Looking ahead, companies in the programmable silicon market will need to diversify their sourcing networks and explore alternate suppliers in other regions to mitigate supply risks. There is also a renewed focus on building local manufacturing capacities and reducing dependence on any single country or region.

Regions where programmable silicon market value is concentrated:

The programmable silicon market in terms of value is highly concentrated in the Asia Pacific region, primarily in countries like China, Taiwan, South Korea and Japan. These countries account for over 60% of the global market revenue owing to the presence of a robust semiconductor manufacturing ecosystem and leading foundry players. Taiwan alone contributes to nearly 30% of the worldwide programmable silicon market value due to major wafer fabricators and fabless chip design firms located here. North America is the second largest regional market led by the US, where many large integrated device manufacturers and systems companies driving demand are headquartered. Besides manufacturing, the region also leads in silicon wafer processing equipment, design technologies and tools associated with programmable silicon.

Fastest growing region for programmable silicon market:

The region projected to witness the fastest growth in the programmable silicon market during the forecast period is Eastern Europe. With countries like Poland emerging as alternative manufacturing destinations to EU nations, several semiconductor foundries are setting up new fabs or expanding existing facilities in Eastern Europe. Additionally, governments are actively promoting semiconductor industry through tax incentives and investments. This is attracting both international as well as local fabrication of programmable silicon devices catering to growing demand from automotive, industrial automation, communications and consumer electronics sectors across Europe. The growth momentum is expected to continue beyond 2030, propelling Eastern Europe to be among the top five regions in programmable silicon market.