Global chip sector to grow in 2025 driven by advancements in AI
Date
12/29/2024 3:15:23 AM
(MENAFN) The global chip sector is poised for further growth in 2025, driven by advancements in artificial intelligence (AI) technologies and the expansion of 5G networks. Chips and semiconductors are essential to modern technology, powering everything from smartphones and computers to industrial machinery, electronics, and military defense systems. Their importance continues to grow as they are at the core of technological innovation and economic progress across various industries.
In 2024, the Semiconductor sector experienced significant expansion, with its market size estimated to have exceeded USD600 billion. A report from consultancy firm PwC predicts that the global chip and semiconductor market will surpass USD1 trillion by 2030. The rapid growth is fueled by increasing demand for AI applications and high-performance computing, areas that are expected to continue driving the industry forward.
Taiwan plays a central role in global chip production, particularly for advanced chips measuring 7 nanometers or smaller, accounting for 60 percent of the global output. This strategic position has made Taiwan a focal point of geopolitical tensions between the US and China, which could shape the future of semiconductor production.
Looking ahead, the International Data Corporation (IDC) predicts the semiconductor industry will grow by 15 percent in 2025, with breakthroughs in cloud computing and other specialized industries contributing to the boom. The production of 2-nanometer chips is expected to define the industry's trajectory in 2025, intensifying competition between key players like Taiwan Semiconductor Manufacturing Company (TSMC), Samsung, and Intel. Despite challenges such as geopolitical risks and market fluctuations, double-digit growth is anticipated for the semiconductor sector next year.
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