System on Chip Market Report 2026

The system on chip market size has grown strongly in recent years. It will grow from $163.73 billion in 2025 to $177.11 billion in 2026 at a compound annual growth rate (CAGR) of 8.2%. The growth in the historic period can be attributed to growth of consumer electronics devices, miniaturization of electronic components, rising demand for portable computing devices, cost reduction through integration, early adoption in mobile processors.

The system on chip market size is expected to see strong growth in the next few years. It will grow to $232.95 billion in 2030 at a compound annual growth rate (CAGR) of 7.1%. The growth in the forecast period can be attributed to expansion of AI-enabled devices, rising adoption of connected devices, growth of electric and autonomous vehicles, increasing demand for edge computing solutions, advancements in semiconductor manufacturing processes. Major trends in the forecast period include increasing integration of multiple functionalities into single-chip architectures, growing adoption of low-power and energy-efficient chip designs, rising demand for customized socs for application-specific requirements, advancements in semiconductor fabrication nodes and packaging technologies, increasing use of socs in edge computing and embedded systems.

The increasing adoption of smartphones is expected to propel the growth of the system on chip (SoC) market going forward. Smartphones are handheld electronic devices that combine the functions of a mobile phone with those of a computer, offering internet access, communication features, and a wide range of applications. The rise in smartphone usage is driven by their versatility in delivering communication, information, entertainment, and productivity tools in a portable device. SoCs integrate multiple electronic components, including processors, memory, and peripherals, onto a single chip, optimizing smartphone performance and power efficiency. For instance, in January 2024, according to the Ministry of Information and Communications of Vietnam, a Vietnam-based regulatory agency, the share of smartphone users among mobile phone users reached 84.4%, with the country targeting 100% smartphone ownership by the end of 2024. Therefore, the increasing adoption of smartphones is driving the growth of the system on chip (SoC) market.

Leading companies in the system-on-chip market are focusing on developing advanced solutions, such as AI-focused systems foundries, to meet various industry needs. A systems foundry designed for AI is a specialized platform that optimizes the creation and deployment of AI systems, providing customized tools and infrastructure. For example, in February 2024, Intel, a US-based technology company, unveiled the world’s first systems foundry tailored for the AI era, marking a significant milestone in semiconductor manufacturing. This initiative, announced during the Intel Foundry Direct Connect event, aims to address the growing demand for AI-driven chip designs by offering a comprehensive approach that integrates chip design, testing, and manufacturing services. Notable features include the introduction of 14A process technology, collaborations with major companies like Microsoft and Arm to improve design workflows, and advanced packaging solutions such as the embedded multi-die interconnect bridge (EMIB) technology.

In January 2023, Arteris, a semiconductor company based in the US, acquired Semifore for an undisclosed amount. The acquisition is intended to boost the development of System-on-Chip (SoC) technologies by incorporating Semifore's advanced hardware/software interface (HSI) solutions. Semifore, an Australia-based technology company, specializes in providing HSI tools and services that aid semiconductor design, ensuring efficient integration between hardware and software in complex chip architectures.

Major companies operating in the system on chip market are Apple Inc., Samsung Electronics Co. Ltd., Huawei Technologies Co. Ltd., Sony Corporation, Taiwan Semiconductor Manufacturing Company Limited, Intel Corporation, Qualcomm, Broadcom Inc., Micron Technology Inc., NVIDIA Corporation, Toshiba Corporation, Advanced Micro Devices Inc., Texas Instruments Incorporated, MediaTek Inc., STMicroelectronics N.V., Infineon Technologies AG, NXP Semiconductors N.V., Renesas Electronics Corporation, onsemi, Marvell Technology Group Ltd., Arm Limited.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have impacted the system on chip market by increasing costs for semiconductor wafers, advanced manufacturing equipment, and cross-border chip components. These cost pressures have affected consumer electronics, automotive electronics, and telecommunications segments, particularly in Asia-Pacific regions that dominate semiconductor manufacturing. Higher tariffs have also led to supply chain disruptions and pricing volatility. However, tariffs are encouraging localized chip production, strategic partnerships, and increased investments in domestic semiconductor fabrication, supporting long-term supply chain resilience.

The system on chip research report is one of a series of new reports that provides system on chip market statistics, including the system on chip industry's global market size, regional shares, competitors with a system on chip market share, detailed system on chip market segments, market trends and opportunities, and any further data you may need to thrive in the system on chip industry. This system on chip market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

System on chip (SoC) refers to an integrated circuit that consolidates various computer or electronic system components onto a single chip. It finds extensive use in a variety of electronic devices due to advantages such as reduced power consumption, smaller form factors, lower cost, and enhanced performance compared to systems built from separate components.

The primary types of system on chip include digital system on chips, mixed-signal system on chips, and analog system on chips. Digital system on chips integrate multiple digital functions such as processing, memory, and input/output interfaces onto a single chip. They are employed in applications such as home appliances, portable electronic devices, advanced driver assistance systems, medical devices, radio-frequency devices, power-electronic devices, wired and wireless communication devices, wearable devices, and others across industries such as consumer electronics, automotive and transportation, information technology (IT) and telecommunication, aerospace and defense, healthcare, power and utility, and more.Asia-Pacific was the largest region in the system on chip market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the system on chip market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the system on chip market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The system on chip market consists of revenues earned by entities by providing services such as multimedia processing, sensor interfaces, security features, power management, networking, peripheral control, real-time processing, and customizable hardware accelerators. The market value includes the value of related goods sold by the service provider or included within the service offering. The system on chip market also includes sales of central processing units (CPU), and graphics processing units (GPU). Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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