Semiconductor revenue to achieve 14% growth to $717 bn

Global semiconductor revenue is set to grow significantly, with a projected 19 percent increase in 2024, reaching $630 billion, and a further 14 percent growth in 2025, totaling $717 billion. This growth follows a recovery from a decline in 2023, the latest Gartner report said.

BE Semiconductors
BE Semiconductors

The surge in AI applications is a primary driver, along with a recovery in electronic production. However, demand from automotive and industrial sectors remains subdued.

Memory revenue is expected to rise by 20.5 percent in 2025, reaching $196.3 billion.

Key segments include:

NAND Flash: Prices are expected to climb by 60 percent in 2024 due to undersupply but may drop by 3 percent in 2025. Revenue is projected to reach $75.5 billion.

DRAM: Driven by rising demand and enhanced production, DRAM revenue is forecast to hit $115.6 billion in 2025.

AI Impact on GPUs and HBM:

GPUs, essential for AI model training, are anticipated to see 27 percent revenue growth, totaling $51 billion in 2025. The shift to AI inference workloads is emphasized for ROI.

High-bandwidth memory (HBM) demand is soaring, with projected revenue of $21 billion in 2025, up by 70 percent from 2024. By 2026, 40 percent of HBM chips are expected to support AI inference tasks, up from less than 30 percent today.

Latest

More like this
Related

Semiconductor sales surge 23.2% to $166 bn in Q3: SIA

Global semiconductor sales have reached $166 billion in Q3...

GlobalFoundries revenue drops 6% to $1.74 bn

GlobalFoundries Q3 2024 result indicated that its revenue fell...

Samsung Q3 results show it lost momentum in AI business

Samsung, announcing its financial result for Q3 2024, has...

SK Hynix Q3 2023 revenue reflects AI boom

SK Hynix has reported 94 percent rise in revenues...