Fabless Integrated Circuit (IC) Design Market Global Report 2026

The fabless integrated circuit (IC) design market size has grown strongly in recent years. It will grow from $218.48 billion in 2025 to $238.61 billion in 2026 at a compound annual growth rate (CAGR) of 9.2%. The growth during the historic period can be attributed to increasing demand for customized integrated circuits, rising complexity in semiconductor design, growing outsourcing of semiconductor fabrication, expanding adoption of advanced electronic devices, and increasing need to lower semiconductor manufacturing costs.

The fabless integrated circuit (IC) design market size is expected to see strong growth in the next few years. It will grow to $342.45 billion in 2030 at a compound annual growth rate (CAGR) of 9.5%. The growth during the forecast period can be attributed to increasing demand for specialized chip architectures, rising need for shorter semiconductor development cycles, growing adoption of advanced process nodes, expanding demand for outsourced wafer fabrication capacity, and increasing demand for application-specific integrated circuits. Major trends during the forecast period include increasing adoption of advanced semiconductor design architectures, rising demand for outsourced semiconductor manufacturing, growing use of third-party semiconductor design and verification services, increasing demand for faster chip design cycles, and expanding adoption of advanced process node designs.

The rising adoption of Internet of Things (IoT) devices is expected to drive the growth of the fabless integrated circuit (IC) design market going forward. Internet of Things (IoT) devices are physical objects equipped with sensors, software, and connectivity that allow them to collect, exchange, and act on data through the internet. The adoption of Internet of Things (IoT) devices is increasing due to growing demand for automation, as businesses and consumers increasingly rely on connected devices to monitor, control, and optimize processes with limited human intervention. The growing adoption of Internet of Things (IoT) devices supports fabless integrated circuit (IC) design by increasing demand for low-power, high-performance, and application-specific chips that enable seamless connectivity, real-time data processing, and intelligent edge computing across connected devices. For instance, in April 2025, according to Ericsson, a Sweden-based telecommunications company, global IoT connections reached 18.8 billion in 2024 and were expected to increase to 43.0 billion by 2030. Therefore, the rising adoption of Internet of Things (IoT) devices is driving the growth of the fabless integrated circuit (IC) design market.

Major companies operating in the fabless integrated circuit (IC) design market are concentrating on developing innovative solutions such as AI-optimized mobile chip designs to improve on-device artificial intelligence performance, computing efficiency, and energy efficiency. AI-optimized mobile chip designs are semiconductor architectures specifically engineered to efficiently handle artificial intelligence workloads directly on mobile devices. For instance, in September 2025, Arm Holdings, a UK-based semiconductor technology company, launched Lumex, an AI-optimized mobile chip design platform intended to enable AI workloads to operate directly on mobile devices such as smartphones and smartwatches without dependence on cloud computing. The platform provides benefits including enhanced AI processing capabilities, improved energy efficiency, and greater computing performance. The launch is intended to support customers in developing advanced AI-enabled mobile devices while contributing to the continued advancement of on-device artificial intelligence.

In November 2024, MACOM Technology Solutions Holdings Inc., a US-based semiconductor company, acquired ENGIN-IC Inc. for an undisclosed amount. Through this acquisition, MACOM aimed to enhance its fabless integrated circuit (IC) design capabilities by expanding its expertise in Gallium Nitride (GaN) monolithic microwave integrated circuit (MMIC) design, strengthening its intellectual property portfolio, and improving its ability to serve defense, aerospace, and other high-performance semiconductor markets. ENGIN-IC Inc. is a US-based fabless semiconductor company specializing in the design of advanced GaN MMICs and integrated microwave assemblies.

Major companies operating in the fabless integrated circuit (IC) design market are NVIDIA Corporation, Apple Inc., Broadcom Inc., Qualcomm Incorporated, Advanced Micro Devices Inc., MediaTek Inc., Marvell Technology Inc., Arm Holdings plc, Realtek Semiconductor Corporation, Novatek Microelectronics Corp., Monolithic Power Systems Inc., Cirrus Logic Inc., UNISOC (Shanghai) Technologies Co. Ltd., Alchip Technologies Ltd., GigaDevice Semiconductor Inc., Synaptics Incorporated, Nordic Semiconductor ASA, Lattice Semiconductor Corporation, Himax Technologies Inc., Silicon Laboratories Inc., Rambus Inc., MaxLinear Inc., Elmos Semiconductor SE, Faraday Technology Corporation, Credo Technology Group Holding Ltd., Ambarella Inc., Achronix Semiconductor Corporation, QuickLogic Corporation, Peraso Inc.

Asia-Pacific was the dominating region in the fabless integrated circuit (IC) design market in 2025. Asia-Pacific is expected to be the rapidly growing region in the forecast period. The regions covered in the fabless integrated circuit (IC) design market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the fabless integrated circuit (IC) design market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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