Global Chip Revenue Projected to Grow 14% to Reach $717 Billion by 2025
Global semiconductor revenue is expected to increase by 14% to $717 billion in 2025, up from $630 billion this year, according to a report released on Monday.
In the short term, growth in the memory market and graphics processing units (GPUs) will drive global semiconductor revenue, as outlined in a Gartner report.
The worldwide memory revenue market is forecasted to grow by 20.5% in 2025, reaching $196.3 billion. A sustained undersupply in 2024 is projected to push NAND prices up by 60%, although they are anticipated to decline by 3% in 2025.
With reduced supply and a softer pricing environment, NAND flash revenue is expected to reach $75.5 billion in 2025, a 12% increase from 2024.
After a decline in 2023, semiconductor revenue is rebounding and is anticipated to achieve double-digit growth in 2024 and 2025. Rajeev Rajput, a senior principal analyst at Gartner, noted that this growth is driven by rising demand for AI-related semiconductors and a recovery in electronic production, despite weak demand from the automotive and industrial sectors.
Additionally, DRAM supply and demand are set to improve due to better undersupply, increased production of high-bandwidth memory (HBM), and rising prices for double data rate 5 (DDR5). Overall, DRAM revenue is projected to reach $115.6 billion in 2025, up from $90.1 billion in 2024.
GPUs, which play a key role in AI model training and development, are expected to generate $51 billion in revenue, a 27% increase in 2025. However, the market is shifting towards a return on investment (ROI) phase, where inference revenues need to significantly grow to match training investments, according to George Brocklehurst, VP analyst at Gartner. HBM revenue is anticipated to rise by over 284% in 2024 and 70% in 2025, reaching $12.3 billion and $21 billion, respectively.
