Semiconductors

According to the Semiconductor Industry Association, global semiconductor sales reached $627.6 billion in 2024, marking a 19.1% increase compared to 2023. Double-digit market growth is projected for 2025, with a robust compound annual growth rate (CAGR) of 8.8% expected from 2023 to 2032. By 2032, global semiconductor demand is anticipated to reach a valuation of $1.3 trillion.

Semiconductors are materials used to create electronic components that are essential in modern technology. Semiconductors form the foundation of integrated circuits (ICs) and are crucial for the operation of various electronic devices, including smartphones, computers, industrial machinery, automobiles, power plants, and spacecraft.

The Czech Republic holds a unique position in the current EU and global context to participate in semiconductor market growth. Its semiconductor value chain (SVC) emphasizes expanding existing facilities, technologies, innovation, and intellectual potential rather than building new fabs from scratch. This approach aims to develop a comprehensive AI-enabled SVC backend, IoT, fabless industry, and a strong talent pool.

The state-of-the-art Czech 'Semiconductor Valley,' led by onsemi, annually produces over 3 million semiconductor wafers and more than 3 billion integrated circuits (ICs). Brno is a global leader in electron microscope production, with companies like ThermoFisher Scientific, Tescan and Delong Instruments producing every third electron microscope worldwide. Codasip's fabless RISC-V processor intellectual property (IP) is utilized in over 3 billion chips globally. MycroftMind and SmarterInstruments have developed energy grid self-learning AI, recognized for top innovation by the European Committee within Important Projects of Common European Interest on Microelectronics and Communication (IPCEI on ME/CT). This AI technology can operate in small sensors and new generations of automotive, IoT, and smarter chips.

The expected growth segments for the semiconductor market are well addressed in the Czech SVC. These include embedded AI, AI driven manufacturing, fabless, Electronic Design Automation (EDA) tools, Field Programmable Gate Arrays (FPGA), acceleration engines, and power electronics based on compound materials like Silicon Carbide (SiC). Additionally, the backend supports key needs in automotive, battery, energy grid, IoT, and other critical application segments.

In cooperation with the government (Ministry of Industry and Trade; Ministry of Education, Government Office with R&D&I agenda and government agencies, like CzechInvest) and regional authorities and institutions, the Czech National Semiconductor Cluster (CNSC) integrates key academic and industrial elements of the Czech SVC. It serves as the entry point for investors and experts to explore the Czech Republic's semiconductor potential. Established in Brno, the heart of the Czech 'Semiconductor Valley,' CNSC drives innovation in the SVC and aligns with EU, US, and TW semiconductor clusters and institutions. The Czech SVC participates in key EU initiatives such as IPCEI on ME/CT and the EU Chips Act, and is a key member of Silicon Europe Alliance, the largest EU cluster organization with over 2,000 companies and more than 400,000 high-tech jobs. CNSC represents Czech interests within the European Semiconductor Regions Alliance (ESRA), which currently includes 36  EU and UK regions

Working within the 5th order Helix, CNSC collaborates with regions to enhance their capabilities for the SVC. Pilot projects aimed at strengthening semiconductor competencies will help establish similar cooperations in Czech regions, with promising opportunities for cross-regional cooperation within the EU. By the and of 2024, Czech Semiconductor Centre, has been awarded by the funding within Pillar I of EU Chips Act as one of 27 national chips competence centers in EU. CNSC participates also in related projects aCCCess (alliance of Chips Competence Centers for enhanced semiconductor services) and DECIDE (Democratizing European Chip Innovation and Design Ecosystem). Internalization of Czech semiconductor ecosystem is supported also by three new centers established within Czech – Taiwan semiconductor cooperation: Supply Chain Resilience Center (at Charles University in Prague), Advanced Chips Design Research Center (at Masaryk University in Brno) and Taiwan Chips Academe (at Czech Technical University in Prague).

CNSC implements the National Semiconductor Strategy in partnership with the Ministry of Industry and Trade, CzechInvest, Ministry of Education, Government Office, leading universities, municipalities and regional innovative agencies and other key semiconductor players to outline the Czech semiconductor roadmap up to 2030 and beyond.

Like top analysts, CNSC remains optimistic about the semiconductor industry reaching $1 trillion by the end of this decade, and we are committed to keeping the Czech Republic competitive in this highly attractive market.