Media Release
Australia’s semiconductor sector generated close to $1 billion in revenue and added $820 million to the economy in 2025, but industry body the Semiconductor Sector Service Bureau (S3B) says the country risks falling behind without a coordinated national approach and greater investment. With no government strategy in place, S3B has released the Shaping Australia’s Semiconductor Future Discussion Paper and is now urging the sector to take part in a survey that will shape Australia’s first National Semiconductor Roadmap.
The Semiconductor Sector Service Bureau (S3B) is Australia’s only industry hub for the semiconductor sector. Established three years ago with funding from the NSW Office of the Chief Scientist and Engineer, S3B supports the growth of the semiconductor sector across NSW and nationally. Its vision is to build a thriving, globally connected sector in Australia and increase its economic impact. It’s Shaping Australia’s Semiconductor Future Discussion Paper identifies key opportunities for Australia and sets out the priorities to shape a much-needed national approach.
Semiconductors are foundational to modern life, economic productivity and national security. They underpin the technologies Australia relies on every day, from communications networks, energy systems, medical technologies and transport to defence capability, artificial intelligence, quantum technologies and advanced manufacturing.
S3B Acting Director Matthew Worsman said the opportunity for Australia to grow the industry was now. “The global economy is becoming more digital, automated and electrified, and semiconductor capability is becoming central to how nations build resilience, capture value and stay competitive. Australia is currently playing to selective strengths in the knowledge-intensive, design-led and application-linked parts of the value chain, rather than running a full-stack semiconductor economy.”
“Other countries are investing significantly in this sector, and Australia needs to consider how it can secure its place in the global ecosystem. There is no coordinated national approach. S3B has released this Discussion Paper to spark conversations and gather input from across the sector, so together we can build a Roadmap for an end-to-end value chain and make sure as a nation we’re not left behind.”
Deloitte Access Economics[1] estimates that Australia’s $1 billion semiconductor ecosystem, supports approximately 5,790 full-time equivalent jobs, including both direct and indirect employment. Activity is concentrated in knowledge-intensive and application-linked segments, including research and development, design, intellectual property, advanced materials, photovoltaics, photonics, quantum-related technologies, specialised devices, and semiconductor-enabled products and applications.
“The sector will always rely on international partnerships, with ties across the United States, Japan, South Korea, Taiwan and the European Union, and deepening engagement with Singapore, India and Vietnam. Australia’s dependence on offshore capabilities creates a strategic risk that genuinely needs more diversified and trusted supply-chain access. As nations make increasingly deliberate choices about where semiconductor capability is developed and scaled, Australia’s ability to capture value and participate in future industries will depend on how effectively it connects its domestic strengths to international partners, markets and infrastructure,” added Mr Worsman.
Australia’s domestic capability in manufacturing remains limited, but targeted investments in advanced packaging, photonic packaging, device assembly and related prototyping infrastructure are beginning to add depth to the national infrastructure base.
The Shaping Australia’s Semiconductor Future Discussion Paper is designed to encourage sector input so S3B can build Australia’s first National Semiconductor Roadmap, a 15-year, sector-led strategic plan to guide policy, investment and capability development. The semiconductor and broader technology ecosystem can contribute their views through a survey and a series of national webinars helping to shape the Roadmap and a shared direction for the sector. The Roadmap’s purpose is not to replicate the semiconductor ecosystems of other economies, but to identify where Australia can build real depth, contribute meaningfully to global value chains and capture greater economic and strategic value over time. Strategic areas for consultation cover Australia’s strategic position, capability priorities, supply chain, international engagement, skills and workforce, infrastructure and investment and government policy and coordination.
Australia’s former Chief Scientist, Dr Cathy Foley, said Australia had credible capability at the early stages of the value chain, but lacks depth when it comes to scaling up commercially.
“There’s a missing middle, in infrastructure beyond research scale, in accessing global capability and capital, and in workforce depth at the mid-career, senior and production levels. These challenges are all connected. Together they decide whether ideas and prototypes can progress to deployable products, and whether we build lasting industrial capability and capture long-term value. It’s great to see there is commercial advanced packaging capability being built at Bradfield, Western Sydney. But we still need a Roadmap that prioritises the capabilities, investments and partnerships needed, while providing a pathway for how government and industry can work together to grow the sector and support economic resilience.”
The evidence-based, industry informed Shaping Australia’s Semiconductor Future Discussion Paper proposes that Australia strengthen its semiconductor ecosystem by investing in translation infrastructure, expanding access to global fabrication, packaging, design and supply-chain pathways, building deeper workforce capability, and focusing national effort where Australia already has strength. The recent pandemic and geopolitical events have shown how easily supply chains can be disrupted, so securing the supply of this technology, matters for the broader critical technology industry. At the very least, Australia needs the ability to run low-scale production and manufacturing onshore.
“The Australian semiconductor sector is 180 organisations strong with real but unrecognised opportunity for the economy. There are priority issues we need to tackle if we’re going to grow what is a critical ecosystem, and one with genuine economic potential,” Mr Worsman added.
“Growth and diversification are key, and if we want high value jobs and industries for the future, we need a shared direction and nationally coordinated approach. The release of the Discussion Paper marks an important step in defining Australia’s place in the global semiconductor ecosystem and unlocking the contribution this strategically important sector can make to the nation’s future prosperity.
For access to the Discussion Paper, visit Get Involved – Semiconductor Sector Service Bureau–
To take part in the industry survey and help shape the future of Australia’s semiconductor industry, please use this Shaping Australia’s Semiconductor Future Survey.
For more information, go to S3B.au
Media Contact: Jane Morey, Morey Media. M: 0416 097 678 E: jane@moreymedia.com.au
[1] Deloitte Access Economics, 2026
