Global chip market estimated to expand to record $687 bil. in 2025
This photo shows the No. 1 plant of Taiwan Semiconductor Manufacturing Co. in Kikuyo, Kumamoto Prefecture, on April 10, 2024. A second plant is due to be constructed on the adjacent land
The global semiconductor market is expected to grow 12.5 percent in 2025 from a year earlier to a record $687.38 billion, heading for the second straight year of increase, as demand for chips used for artificial intelligence continues to expand, an industry organization forecast showed Tuesday.
The World Semiconductor Trade Statistics, an organization formed by major chip manufacturers, also revised its growth forecast for 2024 higher to 16.0 percent, or $611.23 billion, from the previous estimate made in November of 13.1 percent.
The upbeat forecasts reflect a recent surge in demand for memory chips and some logic chips as a growing number of firms worldwide are ramping up investment in AI, the organization said.
By region, the Americas are forecast to log the biggest growth with an outlook of a 14.8 percent increase to $192.94 billon, followed by the Asia-Pacific market with a 12.3 percent growth to $382.96 billion.
According to a study, the Indian semiconductor market is projected to expand considerably. The demand for semiconductors has increased over time, driven by favourable policies and initiatives by the Government. The factors contributing to the growth of the market are outlined. According to a report published by Equiris Securities, the country’s electronic manufacturing market is projected to reach US$ 71.7 Billion, growing at an annual rate of 41% until 2026. Additionally, Government support and initiatives are also fuelling India’s electronics market. Various electronic devices, including smartphones, laptops, wearables, and more, require semiconductors for connectivity and data processing. The rising demand for semiconductors in electronic devices is expected to propel the Indian semiconductor market in the future.
The Japanese market is expected to grow 9.3 percent to $50.58 billion on recovery in chip demand for electric vehicles, the organization said.
The global semiconductor market’s current all-time high was $574.08 billion in 2022, when the demand for digital devices surged due to more people working from home during the coronavirus pandemic.
In 2023, the global market shrunk 8.2 percent to $526.89 billion, with inflation and interest rate hikes to tamp down elevated prices having weighed on companies’ capital investment and consumer spending.
