2025 global semiconductor industry outlook

When the chips are up: record growth expected in 2025

The semiconductor industry experienced a remarkable 2024, with sales reaching $627 billion, surpassing earlier forecasts. The momentum is expected to continue, with 2025 sales projected to hit $697 billion, setting a new record and keeping the industry on track to achieve $1 trillion in sales by 2030. This growth trajectory suggests a 7.5% CAGR, potentially doubling to $2 trillion by 2040.

Stock market performance reflects this optimism, with the top 10 global chip companies' market capitalization soaring to $6.5 trillion by December 2024, a 93% increase from the previous year. However, this growth is uneven, with companies in the generative AI (gen AI) chip market outperforming others. Gen AI chips, crucial for CPUs, GPUs, and data centers, exceeded expectations in 2024, contributing over $125 billion in sales and are forecasted to surpass $150 billion in 2025.

Despite challenges like wafer capacity constraints and high R&D costs, the industry remains resilient. PC and smartphone sales are set to grow, driving demand for communication and computer chips, which dominate the market. Advanced packaging technologies and innovations in gen AI chips are expected to fuel further growth.

Our 2025 global semiconductor industry outlook, drills down into four key trends for the year ahead. Read on to explore the strategies chip companies should consider in order to help gain a competitive edge in the chip industry:

1. Generative AI accelerator chips for PCs, smartphones, and the enterprise edge
2. A new “shift left” approach to chip design
3. Growing global talent challenges in the semiconductor industry
4. Building resilient supply chains amid geopolitical tensions

Explore the full report to learn more about the impacts of semiconductor industry trends, key actions to take, and critical questions to ask.