Global microchip revenues are forecasted to grow 14% in 2025, driven by artificial intelligence demand and recovery in electronics manufacturing.

Global Microchip Market on the Rise


The global semiconductor industry is poised for significant growth, with revenues projected to increase by 14% in 2025, reaching $717 billion, according to Gartner, a leading technology research and consulting firm. This marks a remarkable recovery following a challenging period of decline in 2023, as the market benefits from surging demand in key technology sectors.

By the end of 2024, semiconductor revenues are anticipated to see double-digit growth, increasing by 19% to $630 billion, setting the stage for continued expansion in the following year.

Artificial Intelligence Fuels the Microchip Boom


The recovery of the semiconductor market is largely attributed to growing demand for artificial intelligence (AI) technologies and a rebound in electronics manufacturing. Analysts at Gartner noted that while sectors like automotive and industrial applications remain relatively sluggish, advancements in AI and memory technologies are driving growth.

“Expansion is driven by continued growth in semiconductor demand related to artificial intelligence and recovery in electronics manufacturing, while demand from the automotive and industrial sectors continues to be weak,” Gartner stated.

Graphics processing units (GPUs) and memory chips are expected to play a pivotal role in bolstering revenue. These technologies are critical for powering AI applications, from training advanced models to implementing real-time processing systems.

Memory Market and GPUs to Lead the Growth


The memory market is projected to register a substantial increase of 20.5% in 2025, reaching $196.3 billion. Memory chips are essential components in data storage and processing, and their expanding role in AI and other digital transformations underpins their forecasted growth.

Meanwhile, GPUs, which have been instrumental in training AI models, are also experiencing significant momentum. Gartner predicts GPU revenue will climb by 27% in 2025, reaching $51 billion.

However, experts caution that the market is entering a new phase where companies will focus on generating returns from their training investments. “The market is now moving into a phase of return on investment, where the revenue of the conclusion should increase in multiples of training investments,” analysts highlighted.

The Future of the Semiconductor Industry


The global semiconductor market’s robust growth underscores its central role in the digital economy. With AI and electronics manufacturing leading the charge, the industry is well-positioned for sustained expansion.

As technology continues to evolve, innovations in memory solutions and GPUs will likely remain at the forefront, supporting groundbreaking applications across industries. The forecasted surge in microchip revenues not only reflects a strong rebound but also a dynamic shift toward the technologies shaping our future.