PUBLISHER: The Business Research Company | PRODUCT CODE: 1948168
PUBLISHER: The Business Research Company | PRODUCT CODE: 1948168
Artificial intelligence (AI) in chip design refers to the use of AI and machine learning algorithms to automate, optimize, and accelerate various stages of semiconductor design and manufacturing. This includes tasks such as circuit layout optimization, verification, performance prediction, power efficiency improvement, and yield enhancement. The primary purpose of AI in chip design is to reduce development time, cost, and complexity while improving chip performance, energy efficiency, and reliability.
The global artificial intelligence (AI) in chip design market reached a value of nearly $2,563.98 million in 2024, having grown at a compound annual growth rate (CAGR) of 26.05% since 2019. The market is expected to grow from $2,563.98 million in 2024 to $8,064.01 million in 2029 at a rate of 25.76%. The market is then expected to grow at a CAGR of 23.09% from 2029 and reach $22,789.19 million in 2034.
Expansion Of Industrial IoT Applications
The expansion of industrial IoT applications fueled the growth of the artificial intelligence (AI) in chip design market during the historic period. Industrial IoT (IIoT) is a system where connected devices, sensors and machines in industrial environments share data to enhance productivity and streamline operations. Industrial IoT applications are rising due to the increasing demand for automation and real-time data analysis, which help industries improve efficiency, reduce costs and enhance decision-making. AI in chip design benefits industrial IoT applications by creating optimized, low-power processors that can handle large volumes of real-time data, enabling faster analytics and more efficient automation. For instance, in November 2022, according to a report published by Ericsson, a Sweden-based telecommunication company, broadband IoT (4G/5G), which connects the majority of cellular IoT devices, reached 1.3 billion connections in 2022. In 2023, it is predicted to surpass 2 billion connections. Therefore, the expansion of industrial IoT applications propelled the growth of the artificial intelligence (AI) in chip design market.
Transformative Alliances Shaping The Future Of AI And Computing
Companies operating in the artificial intelligence (AI) in chip design market are focusing on developing strategic investments to enable businesses to enter new markets and foster innovation for future growth. Strategic investments are deliberate resource commitments made to support long-term objectives, enhance competitiveness and drive sustainable growth. For instance, in September 2025, NVIDIA Corp., a US-based semiconductor company, announced a $5 billion investment in Intel Corp., a US-based technology company, to advance the development of AI chips, AI infrastructure, and next-generation computing products. Following the investment, Intel and NVIDIA formed a strategic partnership under which Intel will design custom data center CPUs optimized to operate with NVIDIA's AI GPUs for high-performance AI workloads. These AI chips will be integrated using NVIDIA's NVLink technology to enable significantly faster communication and improved efficiency in AI data processing. For the consumer market, NVIDIA will also develop a custom graphics chip to pair with Intel's PC processors, further expanding the application of AI chip technology in personal computing and strengthening Intel's competitive position in the global semiconductor market.
The global artificial intelligence (AI) in chip design market is fairly concentrated, with large players operating in the market. The top 10 competitors in the market made up 29.22% of the total market in 2024.
Artificial Intelligence (AI) In Chip Design Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global artificial intelligence (AI) in chip design market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for artificial intelligence (AI) in chip design? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The artificial intelligence (AI) in chip design market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider artificial intelligence (AI) in chip design market; and compares it with other markets.