Australia Semiconductor Market

Australia Semiconductor Market Overview:

The Australia semiconductor market size reached USD 13.88 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 24.46 Billion by 2033, exhibiting a growth rate (CAGR) of 6.50% during 2025-2033. The market is being driven by strong government incentives, increased research and development (R&D) investments, a skilled STEM workforce, rising demand for consumer electronics and the internet of things (IoT) devices, and strategic efforts to enhance local manufacturing and further integrate the country with global supply chains.

Australia Semiconductor Market Trends:

Government-Driven Expansion of Domestic Manufacturing Infrastructure

Over the past two years, Australia has made significant strides toward building a resilient, sovereign semiconductor ecosystem through strategic investments and partnerships. The Department of Industry, Science, and Resources has launched the National Semiconductor Manufacturing Hub, a public-private initiative to establish pilot fabrication facilities at top universities and industry sites, aiming to reduce import dependence and enhance supply-chain resilience. In October 2023, the Australian National Fabrication Facility received AUD 47.4 million under the National Collaborative Research Infrastructure Strategy to support semiconductor device R&D with advanced cleanrooms and precision equipment. Further backing came in February 2024, with over AUD 51 million allocated through the Cooperative Research Centers Projects (CRC-P) program for twenty-one R&D projects across compound semiconductors, advanced packaging, and quantum devices. These initiatives lay the foundation for Australia's transition from semiconductor importer to manufacturer. With pilot operations set for late 2025 and full-scale commercialization by 2027, Australia aims to double its onshore manufacturing capacity, reduce import reliance, and foster growth across defense, telecommunications, and industrial electronics sectors.

Rapid Rise of Quantum Semiconductor Technologies and Private Sector Innovation

Australia is rapidly emerging as a global leader in quantum semiconductor research and commercialization, underscored by significant government and private sector investments. In July 2024, the federal government allocated AUD 180 million in the first round of the Economic Accelerator grants to boost quantum technologies, marking them as a national priority. Further strengthening this momentum, on April 30, 2024, the Commonwealth, supported by the Queensland Government, committed AUD 466.4 million to PsiQuantum for the construction of a world-first utility-scale fault-tolerant silicon quantum computer facility in Brisbane. This initiative is expected to create hundreds of jobs and attract billions in downstream investments. Private investment is also booming, with Q-CTRL securing USD 75 million and photonics startup Diraq raising USD 120 million in early 2024. These developments are fostering collaboration across universities, the National Fabrication Facility, and global tech firms, with over thirty companies now engaged in pilot projects. Australia's quantum advancements are not only transforming R&D into tangible devices but are also creating synergies in cryogenic control electronics, secure communications, and photonic interconnects, enhancing both commercial and defense tech markets.

Australia Semiconductor Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level for 2025-2033. Our report has categorized the market based on components, material used, and end user.

Components Insights:

• Memory Devices
• Logic Devices
• Analog IC
• MPU
• Discrete Power Devices
• MCU
• Sensors
• Others

The report has provided a detailed breakup and analysis of the market based on the components. This includes memory devices, logic devices, analog IC, MPU, discrete power devices, MCU, sensors, and others.

Material Used Insights:

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

A detailed breakup and analysis of the market based on the material used have also been provided in the report. This includes silicon carbide, gallium manganese arsenide, copper indium gallium selenide, molybdenum disulfide, and others.

End User Insights:

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

The report has provided a detailed breakup and analysis of the market based on the end user. This includes automotive, industrial, data centre, telecommunication, consumer electronics, aerospace and defense, healthcare, and others.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Semiconductor Market News:

• February 2025: Nanoveu, an Australian nanotechnology company, executed a binding share sale agreement to acquire Embedded AI Systems, a system-on-chip semiconductor designing firm. This move aims to enhance Nanoveu's capabilities in semiconductor design.
• January 2025: Adisyn Ltd. completed the acquisition of Israeli semiconductor company 2D Generation. The acquisition focuses on developing capital-light semiconductor IP solutions for data centers, cybersecurity, and managed IT business segments.

Australia Semiconductor Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia semiconductor market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia semiconductor market on the basis of components?
• What is the breakup of the Australia semiconductor market on the basis of material used?
• What is the breakup of the Australia semiconductor market on the basis of end user?
• What is the breakup of the Australia semiconductor market on the basis of region?
• What are the various stages in the value chain of the Australia semiconductor market? 
• What are the key driving factors and challenges in the Australia semiconductor market?
• What is the structure of the Australia semiconductor market and who are the key players?
• What is the degree of competition in the Australia semiconductor market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia semiconductor market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia semiconductor market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia semiconductor industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.