Global – October 24, 2026 -- ARM is set to debut its first in-house chip by summer, moving beyond its traditional role as an IP provider into chip design, while Intel's strategy as an integrated device manufacturer (IDM) faces questions after CEO Pat Gelsinger departed in December 2024.
ARM and Intel shifts reshape a value chain split into eight segments
The semiconductor value chain spans IP design, electronic design automation (EDA), fabless design, foundries and outsourced assembly and test (OSAT), IDMs, chemical and wafer suppliers, equipment makers, and the manufacturers that integrate chips into end products. No single country or company controls every stage. Emerging players backed by substantial government funding are working to close the technology gap, and startups are investing in specialized areas that could disrupt the industry's traditional dynamics.
Synopsys, Cadence and Siemens EDA supply the tools behind increasingly complex designs
ARM and Imagination license chip IP to manufacturers worldwide, and demand is rising for customized IP aimed at high-performance computing and low-power IoT devices. Synopsys, Cadence and Siemens EDA provide the software used to create, simulate and verify designs before manufacturing. AI-driven design is shortening time to market, and cloud-based EDA tools let global teams collaborate on chip development.
NVIDIA, Qualcomm and AMD outsource fabrication to TSMC and other foundries
Fabless companies design and market chips without owning fabs, which avoids the capital investment manufacturing requires. TSMC, Samsung Foundry, United Microelectronics Corporation and GlobalFoundries fabricate these designs using advanced lithography. Some electronic product manufacturers now run their own chip design teams to meet their requirements.
OSAT companies ASE, Amkor and JCET handle testing and packaging. The rise of 3D packaging and chiplet-based architectures is pushing them to develop new assembly methods.
Intel, Samsung and Texas Instruments expand capacity while turning to third-party foundries
IDMs own both design and manufacturing, which gives them end-to-end control over production. They are investing in fabrication capacity to reduce reliance on external foundries and build a more resilient supply chain. At the same time, IDMs increasingly use third-party foundries for specific process nodes.
ASML's EUV machines enable chips at 3nm and beyond
ASML, Applied Materials and Lam Research supply the lithography, etching and deposition equipment for high-performance manufacturing. Investment in high-NA EUV and quantum computing materials is expected to drive the next wave of advances. Shin-Etsu Chemical, Sumco and GlobalWafers produce ultra-pure silicon wafers, and many materials suppliers are adopting chemical recycling and lower water use in wafer production.
Tesla, Bosch, Siemens, Haier and Schneider Electric drive demand for specialized chips
These manufacturers integrate semiconductors into electric vehicles, industrial automation systems and medical devices. Growing demand for AI, IoT and autonomous systems is increasing the need for chips built for edge computing and real-time processing.
Full vertical integration remains unrealistic in the near term, so cross-border alignment is still required. Geopolitical tensions, supply chain disruptions and sustainability concerns will continue to shape the sector.