According to research, the global semiconductor market size is poised for significant growth, reaching USD 673.1 billion in 2024. The semiconductor sales are expected to witness a robust CAGR of 8.8% from 2023 to 2032. By 2032, the global semiconductor demand is anticipated to reach a valuation of USD 1.3 trillion. Semiconductors are materials used to fabricate electronic components that play a fundamental role in modern technology world. They are made of materials with intermediate electrical conductivity, allowing them to control and amplify electrical signals. Semiconductors serve as the building blocks of integrated circuits (ICs) and are vital for the functioning of various electronic devices in every area of day life, ranging from smartphones and computers to industrial machinery, automobiles or power plants and space crafts.

Czech Republic has in current EU and worldwide context exceptional position to participate on semiconductor market growth. Its semiconductor value chain (SVC) is less focused to build the new fabs on green meadow, but to expand of existing facilities, technologies, innovation, and intellectual potential to form complete Artificial Intelligence (AI) enabled SVC backend, Internet of Things (IoT), fabless industry and strong talent pool.

State of the art – Czech “Semiconductor Valley”, thanks to onsemi company produces annually more semiconductor wafers (>3 mil.) and integrated circuits (IC) (>3 bil. chips) than Saxony. Each 3rd electron microscope globally is produced in Brno (ThermoFisher Scientific, Tescan and Delong Instruments), fabless RISC-V processors intellectual property (IP) is used in > 3bil. chips globally (Codasip), energy grid self-learning AI by MycroftMind and SmarterInstruments, with top innovation ranking from European Committee within Important Projects of Common European Interest on Microelectronics and Communication (IPCEI on ME/CT), is capable to run even in small sensors and in new generation of automotive, IoT and smarter chips.

The expected growth segments for semiconductor market as mentioned above for CAGR are very well addressed in the Czech SVC – embedded AI, SVC processes AI, fabless, Electronic Design Automation (EDA) tools, Field Programmable Gate Array (FPGA), acceleration engines, power electronics (based on compound materials like Silicon Carbide - SiC), backend supporting key needs of automotive, battery, energy grid, IoT and other key application segments.

In the cooperation with government (Ministry of Industry and Trade, CzechInvest, Ministry of Education, Government office with R&D&I agenda) and regional institutions, Czech National Semiconductor Cluster (CNSC), which includes both key academic and industrial threads of the Czech SVC, represents the entry point for investors and experts to the Czech Republic semiconductor potential. CNSC established in Brno, center of the Czech “Semiconductor Valley”, is driving the innovation in SVC together with alignments to EU, US and TW semiconductor clusters and institutions. Czech SVC participates on the key EU initiatives such as IPCEI on ME/CT, EU Chips Act, also became the key member of Silicon Europe Alliance – the largest EU cluster organization including more than 2,000 companies and more than 400,000 hi-tech jobs. CNSC represents Czech interests within European Semiconductor Regions Alliance (ESRA, currently with involvement of 27 EU, and UK regions).

Working in 5th order Helix, CNSC cooperates with regions to cultivate their power for the SVC. Pilot projects for strengthening of semiconductor competences will help to setup similar cooperations in Czech regions with promising opportunities also for cross regional cooperation in EU.

CNSC drives development of National Semiconductor Strategy in cooperation with Ministry of Industry and Trade, CzechInvest, Ministry of Education, Government Office, leading universities (Brno University of Technology, Czech Technical University in Prague) and other key semiconductor players to define Czech semiconductor roadmap up to 2030 and beyond.

Like top analysts, CNSC remain bullish on the semiconductor industry reaching $1 trillion around the end of this decade and we are doing our best to keep the Czech Republic in this very attractive game.

Stanislav Černý
Czech National Semiconductor Cluster