Global Semiconductor Market Hits Record 791.7 Billion US Dollars in 2025 Driven by AI

The Semiconductor Industry Association, also known as the SIA, has officially announced that the global semiconductor market reached an unprecedented milestone in 2025. Total annual sales surged to 791.7 billion US dollars, representing a robust year on year increase of 25.6 percent. This historic performance underscores the critical role of advanced silicon in the modern digital economy.

The growth was primarily fueled by two major sectors. Logic chips, the brains of modern computing, remained the largest product category with sales hitting 301.9 billion US dollars, a staggering 39.9 percent increase from the previous year. Meanwhile, the memory sector saw a 34.8 percent jump to 223.1 billion US dollars, driven largely by the intense demand for high bandwidth memory utilized in artificial intelligence servers.

Market momentum accelerated significantly toward the end of the year. December 2025 alone recorded monthly sales of 78.9 billion US dollars, up 37.1 percent compared to the same month in 2024. The fourth quarter performance was equally impressive, reaching 236.6 billion US dollars.

Industry experts and the SIA point toward a multi pillar growth strategy as we move into 2026. Beyond the current artificial intelligence boom, the integration of Internet of Things devices, the rollout of 6G telecommunications infrastructure, and the maturation of autonomous driving technologies are creating a sustained demand cycle. With these drivers in place, the industry is projected to approach or even surpass the 1 trillion US dollar mark by 2026, marking the beginning of a new era for global technology.