Semiconductor Plant Construction Market Report 2025

The semiconductor plant construction market size has grown strongly in recent years. It will grow from $37.64 billion in 2024 to $40.68 billion in 2025 at a compound annual growth rate (CAGR) of 8.1%. The growth during the historic period can be linked to the expanding demand for consumer electronics, the rising requirement for sophisticated automotive electronics, the widespread rollout of 5G infrastructure, enhanced government incentives and subsidies, and the increasing need for data centers and cloud computing services.

The semiconductor plant construction market size is expected to see strong growth in the next few years. It will grow to $54.71 billion in 2029 at a compound annual growth rate (CAGR) of 7.7%. The growth projected for the forecast period can be attributed to a heightened emphasis on supply chain resilience and localization, a growing shift toward environmentally friendly and energy-efficient electronics, widespread digitalization across various industries, increased adoption of wearable technologies and medical devices, and rising demand for memory and storage solutions. Key trends during this period include progress in chip manufacturing techniques, innovations in heterogeneous integration and chiplet designs, improvements in semiconductor materials, technology-driven miniaturization of electronic components, and advancements in cleanroom and contamination control systems.

The growing demand for consumer electronics is expected to drive the expansion of the semiconductor plant construction market in the coming years. Consumer electronics include electronic devices used daily by individuals, such as smartphones, laptops, televisions, and home appliances. This rising demand is mainly fueled by increasing disposable incomes, allowing consumers to spend more on gadgets that enhance convenience, connectivity, and lifestyle. Semiconductor plant construction supports this growth by ensuring a reliable supply of advanced chips needed to power devices like smartphones, laptops, and smart home appliances. For example, in May 2023, the Japan Electronics and Information Technology Industries Association reported that Japan’s electronic equipment production reached 771.45 billion yen (approximately $5.6 billion), with consumer electronics output rising to 32.09 billion yen (around $233 million), up from 25.26 billion yen ($183 million) in May 2022. Hence, the rising demand for consumer electronics is propelling the semiconductor plant construction market.

Leading companies in the semiconductor plant construction market are focusing on developing cutting-edge manufacturing solutions, such as AI-enabled automation systems, to boost production efficiency, cut operational costs, and improve precision in chip fabrication. AI-enabled automation systems employ artificial intelligence to monitor, control, and optimize manufacturing with minimal human involvement. These systems enhance semiconductor plants by speeding up production, reducing errors, predicting equipment failures, and maintaining consistent product quality throughout the fabrication process. For instance, in December 2024, Tata Electronics Private Limited, an India-based manufacturer, partnered with Powerchip Semiconductor Manufacturing Corporation (PSMC), a Taiwan-based company, to begin constructing India’s first AI-enabled semiconductor fabrication plant in Dholera, Gujarat. This advanced facility marks a significant milestone in India’s semiconductor capabilities and aims to produce 50,000 wafers per month by 2026. The plant will utilize next-generation AI-enabled automation systems to monitor and optimize every phase of chip manufacturing, enhancing efficiency, reducing waste, minimizing downtime through predictive maintenance, and ensuring superior chip quality.

In December 2022, Arcadis N.V., a Netherlands-based construction firm, acquired DPS Group Global Limited for an undisclosed amount. Through this acquisition, Arcadis N.V. seeks to reinforce its position in the high-tech industrial manufacturing sector by incorporating DPS Group Limited’s expertise in life sciences and semiconductor facility design and construction. This integration will provide clients across North America and Europe with a comprehensive full-service solution, expand Arcadis’s Places business area, add 2,850 professionals to its workforce, and accelerate growth by leveraging established client relationships and improving project delivery capabilities in advanced technology markets. DPS Group Limited is an Ireland-based consultancy, engineering, and construction management company specializing in life sciences and semiconductor manufacturing facilities.

Major players in the semiconductor plant construction market are Samsung Electronics Co. Ltd., Taiwan Semiconductor Manufacturing Company Limited, Intel Corporation, Mitsubishi Electric Corporation, Micron Technology Inc., Texas Instruments Incorporated, STMicroelectronics N.V., Bechtel Corporation, Infineon Technologies AG, Fluor Corporation, NXP Semiconductors N.V., Analog Devices Inc., Renesas Electronics Corporation, United Microelectronics Corporation, ON Semiconductor Corporation, GLOBALFOUNDRIES Inc., Rohm Co. Ltd., Vanguard International Semiconductor Corporation, Powerchip Semiconductor Manufacturing Corporation, SkyWater Technology Inc.

Asia-Pacific was the largest region in the semiconductor plant construction market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in semiconductor plant construction report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the semiconductor plant construction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the construction sector, particularly in materials procurement and project costs. Higher duties on imported steel, aluminum, lumber, and machinery have driven up expenses for builders, contractors, and infrastructure developers, leading to increased project bids and delayed timelines. Construction equipment manufacturers face similar challenges, with tariffs on essential components and raw materials inflating production costs and squeezing margins. Additionally, retaliatory tariffs in international markets have curtailed exports of U.S.-made construction equipment and materials, further affecting profitability. The sector must now prioritize local sourcing, modular construction techniques, and supply chain diversification to control costs and ensure project viability amid ongoing trade uncertainties.

Semiconductor plant construction involves the planning, building, and equipping of specialized facilities dedicated to manufacturing semiconductor components such as microchips, transistors, and integrated circuits. This process requires creating cleanroom environments, installing advanced HVAC systems, setting up chemical handling and ultrapure water systems, and fitting high-precision machinery to comply with strict contamination and environmental standards. These projects are highly capital-intensive, technically demanding, and typically span several years.

The primary types of semiconductor plant construction include new builds, expansions, and renovations. New construction entails creating entirely new semiconductor manufacturing sites to increase production capacity and support cutting-edge technologies. These facilities often encompass wafer fabrication plants, assembly and testing centers, and R&D laboratories. The plants utilize equipment such as lithography machines, deposition tools, etching systems, chemical mechanical planarization devices, and cleaning apparatus. Essential infrastructure consists of electrical, mechanical, and networking systems, alongside safety, security, and other critical support frameworks.

The semiconductor plant construction market research report is one of a series of new reports that provides semiconductor plant construction market statistics, including the semiconductor plant construction industry global market size, regional shares, competitors with the semiconductor plant construction market share, detailed semiconductor plant construction market segments, market trends, and opportunities, and any further data you may need to thrive in the semiconductor plant construction industry. These semiconductor plant construction 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.

The semiconductor plant construction market consists of revenues earned by entities by providing services such as feasibility studies and site selection, engineering, procurement, and construction (EPC) services, cleanroom design and installation, electrical and mechanical systems integration and environmental and safety compliance services. The market value includes the value of related goods sold by the service provider or included within the service offering. The semiconductor plant construction market also includes sales of photolithography tools, chemical delivery systems, sub-fab infrastructure, power supply equipment, and contamination control systems. 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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