Global Chip Market Set For 11% Growth In 2025 On A.I. Demand
Date
1/10/2025 7:00:34 PM
(MENAFN- The Rio Times) The global Semiconductor market expects 11% growth to $697.1 billion in 2025, driven by surging artificial intelligence demand in data centers. Tech giant Microsoft plans to invest $80 billion in AI data centers by June 2025.
Meanwhile, traditional sectors like electric vehicles and smartphones show signs of stagnation. GPU manufacturers face unprecedented demand, with the market projected to quadruple to $270 billion by 2029.
Micron technology reports all High bandwidth Memory (HBM) chips sold out for 2025 delivery and is taking 2026 orders. The HBM market is expected to triple to $100 billion by 2030.
Non-AI chip sectors face slower recovery, particularly in automotive semiconductors. Electric vehicle sales weakness in Europe and America continues to impact demand, with power semiconductor recovery not expected until 2026.
Industry analysts warn of potential oversupply after July 2025 due to expanding global production capacity. Geopolitical tensions add uncertainty as U.S.-China relations remain strained.
Chinese semiconductor manufacturers accelerate domestic production amid export control concerns. The industry faces a complex landscape where AI chip demand contrasts sharply with traditional sector slowdown, forcing companies to adapt strategies for this evolving market.
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