The global semiconductor industry delivered a record breaking performance in the third quarter of 2025, with revenue reaching $216.3 billion. This represents a 14.5 percent quarter over quarter increase and marks the first time the industry has crossed the $200 billion threshold in a single quarter.
Semiconductor industry revenue rose eight percent in second quarter. At the current pace, revenue of the semiconductor industry is on track to exceed $800 billion in 2025, according to research from Omdia.
The third quarter typically delivers slightly over 7 percent growth based on historical averages. Public guidance from major semiconductor companies ahead of 3Q25 pointed to roughly 5 percent quarter over quarter expansion, reflecting a standard seasonal pattern. Instead, the semiconductor market more than doubled expectations as nearly all product categories outperformed previous forecasts, pushing overall quarterly growth above 14 percent.
Broad Based Growth Beyond AI and Memory
While AI accelerators and memory ICs remain the most powerful growth engines, Omdia highlights that this quarter’s expansion was far more balanced across the industry. AI related demand continues to surge, especially for training and inference hardware, while memory markets experienced strong pricing and volume momentum.
This marks a notable shift compared to 2024, when revenue surpassed $650 billion but growth was heavily concentrated in NVIDIA and the memory segment. Excluding these two categories, the broader semiconductor market grew only 1 percent in 2024 due to inventory corrections and weak end market demand.
In contrast, 2025 has shown a healthier and more widespread recovery. Total semiconductor revenue grew more than 14 percent quarter over quarter in 3Q25, while growth excluding NVIDIA and memory ICs surpassed nine percent.
Omdia expects the industry to achieve nearly 20 percent annual growth in 2025, with even the non AI and non memory segments tracking toward around nine percent year over year expansion. This signals a shift from narrow segment driven growth to true market wide recovery.
AI and Memory Leaders Drive Record Performance
The top four semiconductor companies in 3Q25 were NVIDIA, Samsung, SK Hynix, and Micron reflecting the sustained dominance of AI accelerators and advanced memory technologies. Together, these companies generated more than 40 percent of total semiconductor revenue during the quarter.
Demand for both conventional DRAM and high bandwidth memory continues to accelerate as AI inference workloads scale across cloud, enterprise, and device environments.
Omdia’s Senior Principal Analyst Lino Jeng said the semiconductor industry is experiencing a sharp short term price recovery driven by this demand surge. He expects the fourth quarter of 2025 to set a new all time revenue record, with the momentum likely to continue well into 2026.
Market Outlook for 2025
With the semiconductor industry already breaking historical revenue records and broad based growth returning across categories, Omdia projects full year 2025 revenue to surpass $800 billion. The strong alignment of AI adoption, memory market expansion, and improving conditions in logic, analog, and connectivity segments signals a resilient and fast expanding market environment.
Baburajan Kizhakedath