Worldwide silicon wafer shipments rebounded in 2025, rising 5.8 percent year over year to 12,973 million square inches (MSI), according to the SEMI Silicon Manufacturers Group (SMG). Despite the shipment growth, wafer revenue declined 1.2 percent to $11.4 billion, highlighting uneven recovery across semiconductor segments.
AI and advanced nodes fuel shipment growth
SEMI described 2025 as an inflection year for the silicon wafer industry, with shipment volumes returning to growth after a period of slowdown. The rebound was primarily driven by rising demand for advanced epitaxial wafers used in logic chips and polished wafers required for high-bandwidth memory (HBM).
The surge in artificial intelligence workloads has significantly increased demand for advanced semiconductors, particularly those used in data centers and generative AI infrastructure. These trends continue to accelerate adoption of leading-edge manufacturing processes, including sub-3nm nodes.
Demand for 300mm wafers remains especially strong as chipmakers ramp production for advanced computing, AI processors and memory technologies.
Revenue pressured by legacy chip weakness
While shipment volumes improved, wafer revenue slipped due to weaker pricing and slower recovery in traditional semiconductor markets. Mature-node segments such as automotive, industrial and consumer electronics are still emerging from extended inventory corrections.
Inventory levels in these sectors have begun to normalize, signaling gradual stabilization. However, recovery remains cautious and sensitive to broader macroeconomic conditions and end-market demand.
Two-track recovery shaping wafer market outlook
Industry leaders expect the silicon wafer market to follow a two-track growth trajectory through 2026:
Strong, sustained demand in advanced technology nodes driven by AI, high-performance computing and data center investments
A gradual and measured recovery in mature semiconductor segments as supply-demand balance improves
Technology transitions to smaller nodes are also increasing requirements for wafer quality, reliability and material innovation, reinforcing long-term demand for advanced wafer solutions.
Silicon wafers remain foundation of the semiconductor industry
Silicon wafers are the essential substrate used to manufacture most semiconductor devices. Produced in diameters of up to 300mm, these highly engineered disks form the foundation for chips used across smartphones, AI systems, cloud infrastructure, vehicles and industrial electronics. As AI adoption accelerates and chip technology continues to advance, silicon wafer demand is expected to remain closely tied to the evolution of next-generation semiconductor manufacturing.