What are Semiconductors?

They’re called “semiconductors” because they are made from materials with adjustable electrical conductivity. This characteristic allows us to create switches or other features without moving parts with sizes nearing the atomic scale. As a result, semiconductor manufacturing is among the most complex and capital-intensive processes in all of human history.

Semiconductors work by controlling the flow of electrons through networks of semiconductor devices (i.e., integrated circuits). Integrated circuits are made by exposing semiconductor wafers (i.e., silicon, compound semiconductors) to a variety of other metals and dopants to control electrical conductivity and build up devices (i.e., transistor). These “fabrication” processes yields many dies from a single wafer. Each die is cut, tested, packaged, and assembled before incorporation into final products.

Semiconductor components can be grouped into six categories. It should be noted that some products may combine components from multiple categories. For example, a system-on-a-chip is logic device with analog and memory components.

• Discrete: single electronic components that perform one basic electronic function. For example, a bipolar junction transistor controls the flow of enables or inhibits the flow of electricity in a circuit.
• Optoelectronics: Semiconductor devices that either produce light or detect light.
• Sensors & Actuators: Semiconductor devices that detect real-world signals or convert electricity into motion.
• Analog: semiconductor devices that translate real-world signals—like sound, temperature, light, voltage—into digital data, or vice versa.
• Memory: semiconductor devices used to store digital data or instructions, either temporarily or permanently.
• Logic: Semiconductor devices that perform logical functions on digital signals to perform tasks like computation, control systems, or route signals.

Semiconductors are the foundation of modern electronics, powering everything from smartphones and laptops to cars and medical devices. They are essential for computing, communication, and sensing technologies.

Beyond consumer devices, semiconductors enable advanced applications like artificial intelligence, renewable energy systems, aerospace, and defense technologies. They also play a critical role in data centers and cloud computing, supporting the global digital economy. In 2024, semiconductor shipments totaled $630.5 billion with over two-thirds going into computers and communications systems, which are growing rapidly due to compute demand. As technology advances, semiconductors are becoming even more integral to innovations such as autonomous vehicles, 5G networks, and quantum computing.

Detailed information on semiconductor sales by end-use, type, and regions are available in our annual End Use Survey.