Australia Semiconductor market is projected to witness a CAGR of 5.04% during the forecast period 2024–2031, growing from USD 1.58 billion in 2023 to USD 2.34 billion in 2031. The market has experienced significant growth over time and is expected to maintain a strong growth rate over the upcoming years. Despite its nascent semiconductor sector, Australia is realizing the strategic value of possessing a local semiconductor capacity. The worldwide scarcity of semiconductors has brought attention to Australia’s dependence on imported chips and the susceptibility of its supply chains.
To make up for the scarcity, the Australian government is focusing on partnering with private entities to develop the semiconductor industry, which currently requires emergency construction services from licensed electricians to build semiconductor plants. The partnership is crucial in ensuring that the required infrastructures are developed through private sector resources and expertise. Through the engagement of industry stakeholders, the government is on the verge of developing the required talent pipeline, where workers become more productive and capable of meeting the demands of semiconductor manufacturing. This strategic focus is highly essential in enhancing competitiveness in Australia semiconductor market.
Utilization of Quantum Computing is Proliferating the Market Growth
Quantum computing is regarded as one of the major semiconductor industry drivers, and it utilizes semiconductor materials to generate and manage qubits, which are the basic components of quantum processors. This integration permits advancements in processing capability, allowing the quantum computers to perform several operations simultaneously using superposition. Furthermore, semiconductor technology makes room-temperature quantum systems more scalable and commercially viable.
In May 2024, The American quantum computing startup PsiQuantum got a USD 620 million (AUD 940 million) investment from the Australian government. The federal & Queensland governments have contributed to this financing, which will help PsiQuantum achieve its objective of creating a fault-tolerant, commercially viable quantum computer. The business intends to build its regional office close to Brisbane, Australia. Despite some reservations about the openness of the selection process, the substantial investment demonstrates the strategic significance of quantum computing and Australia’s aspirations to establish itself as a worldwide leader in this game-changing technology.
Usage of Semiconductor in IT Services are Augmenting the Market Growth
Australia semiconductor market is gaining demand from the expansion of IT services. Fabless semiconductor businesses are reaching international markets and creating highly advanced chips more effectively due to IT services. AI and cloud computing boosts the demand for cutting-edge semiconductors, and IT service companies are facilitating supply chain integration for startups.
For instance, in July 2024, Logicalis Australia came to be recognized as Microsoft ANZ 2024 Azure Partner of the Year for its proficiency in digital transformation and cloud migration. Western Sydney University benefited from the company’s all-inclusive Azure migration solution, which decreased operating expenses and improved business agility. This award was given to Logicalis Australia in recognition of its strategic approach in cloud adoption and utilization of Microsoft’s Cloud Adoption Framework, and its dedication to excellence and in-depth knowledge of Azure services.
Click: https://www.marketsandata.com/industry-reports/australia-semiconductor-market
Development of Domestic Semiconductor Production
Australia’s local semiconductor production is expected to boom to reduce the dependency on imported semiconductors. Australia does not have a strong local manufacturing environment, beneath the country’s strong talented semiconductor design and R&D personnel. Due to its reliance on imports, the nation is promoting domestic production of semiconductor in Australia.
The Australian government is trying to solve the situation by encouraging foreign investment in the semiconductor industry, which assists domestic fabless chip businesses grow, funding workforce development and research and development for semiconductors. For instance, in July 2024, the United Nations announced that Australia’s 2023 imports of diodes, transistors, and related semiconductor devices from India were worth USD 0.62 million.
Government Initiatives Acting as a Catalyst
The Australian government is actively working towards improvising semiconductors in the country. Hence, higher authorities are encouraging the R&D centers to frame out in-depth and highly upgraded technologies that may be implicated in semiconductors for further market advancements. In November 2023, The Australian government declared its intention to establish a robust semiconductor ecosystem, which will involve significant investments in research and development facilities, utilizing frameworks such as AUKUS to facilitate resource sharing, cultivating industry-academia collaborations to guarantee a consistent supply of skilled labor, and luring investment from international foundries via financial incentives and public-private partnerships. The government aims to position Australia as a viable destination for semiconductor investment and demonstrate its ability to provide the skilled personnel required to support scaled manufacturing.
Southeastern Australia to Dominate the Market Share
Southeastern Australia, especially New South Wales, is at the forefront of the semiconductor market, owing to strategic initiatives, such as the Semiconductor Sector Service Bureau, which promotes collaboration, training, and foundry access. The region is home to creative enterprises such as Morse Micro Pty Ltd., which specializes in low-power WiFi chips for the purpose of IoT applications.
This leadership is strengthened by the growing acknowledgment of semiconductors’ importance to economic and national security. Despite hurdles such as high costs and a skills shortage, Southeastern Australia’s dedication to establishing a strong semiconductor ecosystem places it as a significant player in the market, driving technical innovation and economic growth.
Future Market Scenario (2024–2031F)
1. The demand for semiconductors is driven by emerging technologies such as 5G, AI, IoT, and quantum computing, which could predict continuing to boost the market in the forecast years.
2. The growth of cloud computing and data centers is driving the need for more potent and effective processors. It is thus expected that this would accelerate the market’s overall expansion.
3. The semiconductor market is expanding and will continue to play a significant role in the forecast due to its increased usage in consumer electronics, electric cars, and industrial automation.
4. To encourage the development of the country’s semiconductor market, the government of Australia is investing in R&D and providing financial incentives.
Report Scope
“Australia Semiconductor Market Assessment, Opportunities and Forecast, 2017–2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of Australia semiconductor market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
Contact
Mr. Vivek Gupta
5741 Cleveland street,
Suite 120, VA beach, VA, USA 23462
Tel: +1 (757) 343–3258
Email: info@marketsandata.com
Website: https://www.marketsandata.com