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.
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.