Australia’s first National Semiconductor Roadmap is here 

Australia’s first National Semiconductor Roadmap sets out a plan to triple the sector by 2040

The Semiconductor Sector Service Bureau (S3B) released Australia’s National Semiconductor Roadmap at the Semiconductor Australia 2026 Industry Conference in Sydney earlier this month. The National Roadmap sets out a shared vision for the sector to 2040, and the key actions needed to achieve it.

Where the Roadmap points

Australia’s semiconductor sector spans more than 200 organisations from startups and small and medium-sized enterprises, large anchor firms, university-linked ventures and research organisations. In 2025, the sector generated close to $1 billion in semiconductor-related revenue, contributed $820 million in total value added to the economy and supported about 5,790 full-time equivalent jobs (Deloitte Access Economics, 2026)

The National Roadmap does not recommend pursuing end-to-end chip manufacturing, instead it identifies four areas where Australia already has strengths:

More than 200 industry stakeholders contributed to the National Roadmap, calling for national leadership and coordination, and strong government signals to guide where companies could invest.

What is at stake

Semiconductors underpin almost every part of the modern economy, from energy, health and communications to defence and transport. Global sales reached around US$792 billion in 2025, driven by artificial intelligence, electrification and digital infrastructure (Semiconductor Industry Association, annual global semiconductor sales releases (World Semiconductor Trade Statistics data), 2021–2026; World Semiconductor Trade Statistics, Spring 2026 forecast, June 2026).Yet the most advanced chips are still produced in a small number of overseas facilities, and pandemic-era shortages showed how quickly supply disruptions can affect the products that depend on them.

Modelling by Deloitte Access Economics shows if Australia’s sector grows at a pace comparable with international ecosystems, it could triple its output by 2040, support more than 10,000 additional jobs and deliver a $5.3 billion gain in present value terms. If current constraints remain unaddressed, the economy could instead lose $14.7 billion and almost 12,500 jobs. The difference between the two paths is an estimated $20 billion (Deloitte Access Economics, 2026).“

What is already possible

Diraq: Building quantum on silicon:

Sydney-founded Diraq builds quantum bits (qubits) from modified silicon transistors, using materials and techniques refined by the semiconductor industry over 70 years. Its qubits operate at around one kelvin, reducing energy demands, and a Diraq system has been installed in a Sydney data centre with minimal changes to the facility.

The company scaled to eight qubits on a single chip in 2026, with targets of 150,000 qubits by 2029 and more than two million by 2031.

Diraq relies on established foundry lines, making access to trusted global supply chains and patient Australian investment critical to its growth. It sees advanced packaging as an entry point for expanding Australia’s semiconductor sector, followed by a smaller-scale foundry.

“We could start with high-quality, world-class packaging capabilities, then build towards a more affordable, less advanced teir-2 foundry. Over time, as the industry grows, it may eventually make sense to establish a tier-1 foundry in Australia. But whatever we build needs to be cutting-edge,” so Australian and international customers will want to access it, rather than go offshore,” said Dr Andrew Dzurak, CEO of Diraq.

Building on existing strengths

Dr Cathy Foley, Former Chief Scientist of Australia, current AMRF and SQA Board Chair said, “Australia doesn’t need to build every part of the semiconductor supply chain to compete globally. We have real opportunities in areas such as design, quantum technologies, advanced packaging and critical minerals, and can build on these strengths to capture more value onshore. The planned AMRF Semiconductor Advanced Packaging Facility in Western Sydney is an important step in translating Australian research and expertise in sensor technology into manufactured products. By combining our strengths in critical minerals and design with advanced manufacturing, Australia can move beyond supplying raw materials to capture a greater share of the global semiconductor market.”