The global semiconductor industry will exceed one trillion dollars this year
The analytics firm Omdia anticipates a historic milestone for the technology sector: worldwide semiconductor revenues will surpass the one trillion dollar barrier during the current cycle. This leap is driven by the accelerating need for components due to the intensive development of artificial intelligence. Strong third-quarter results for fiscal year 2025 and expectations for the fourth quarter have led to a revision of the projected year-over-year growth for 2025 to 20.3%. 🚀
Memory chips as the main driver
The DRAM and NAND memory segment is the major catalyst. Its revenues are expected to grow at an unprecedented rate, estimated at 30.7% year-over-year this year. The reason is clear: training and running complex AI models requires storing and processing massive volumes of data, sustaining exceptional demand for high-performance memories.
Key factors driving memory growth:- The data explosion for training AI models generates a constant need for capacity.
- Data centers and servers require increasingly powerful and efficient memory modules.
- Manufacturers are adjusting their production to prioritize chips optimized for AI workloads.
Some in the industry comment, with a touch of humor, that the only list growing faster than the demand for memory chips is the waiting list to acquire them.
Artificial intelligence redefines the landscape
AI not only increases the need for power in central processing units and graphics processing. It is transforming the requirements of the entire global supply chain. Equipment manufacturers and chip designers are reorienting their long-term strategies for this new era, where AI-specialized semiconductors gain absolute relevance.
Strategic changes in the industry:- Chip designers prioritize architectures specific to accelerating machine learning algorithms.
- Original equipment manufacturers integrate custom silicon solutions into their products.
- Investment in R&D focuses on developing technologies that reduce latency and increase bandwidth.