Global Chip Market To Expand To Record $687 Billion Next Year

The global semiconductor market is expected to grow 12.5% in 2025 to a record $687.38 billion, heading for the second straight year of increase, as demand for chips used for artificial intelligence (AI) continues to expand, a recent industry organization forecast showed, Kyodo News reported.

The global semiconductor market's current all-time high was $574.08 billion in 2022.

The World Semiconductor Trade Statistics (WSTS), an organization formed by major chip manufacturers, also revised its growth forecast for 2024 higher to 16%, or $611.23 billion, from the previous estimate made in November of 13.1%.

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% increase to $192.94 billion, followed by the Asia-Pacific market with a 12.3% growth to $382.96 billion.

The Japanese market is expected to grow 9.3% 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.