Global Semiconductor Market Forecasted to Grow 15% in 2025 Due to AI Technology

The global semiconductor industry is gearing up for a significant boost in 2025, driven by the increased demand for artificial intelligence (AI) and high-performance computing (HPC) technologies. According to IDC’s latest report, this growth is expected to exceed 15% next year. From cloud data centers to specialized industry applications, various markets are expected to witness upgrades, signaling a new era for semiconductors.

Galen Zeng, a Senior Research Manager at IDC Asia/Pacific, highlights that the soaring demand for AI is fueling the need for high-end logic process chips and high-priced high bandwidth memory (HBM). This trend is anticipated to push the semiconductor market to achieve double-digit growth in 2025. There will be new growth opportunities across the entire semiconductor supply chain, encompassing design, manufacturing, testing, and advanced packaging.

Looking ahead to 2025, IDC predicts eight key trends that will shape the semiconductor market landscape:
1. Substantial growth in the semiconductor market, expected to reach 15% next year. The memory segment, in particular, is likely to experience a surge of over 24% due to the growing demand for high-end products essential for AI accelerators.
2. Asia-Pacific’s IC design market is heating up, with a projected growth of 15% in 2025, propelled by the increasing demand for various essential chips across global applications.
3. TSMC is expected to maintain its dominance in both traditional and modern semiconductor manufacturing processes, including the Foundry 1.0 and Foundry 2.0 segments.
4. The demand for advanced nodes is intensifying, particularly below 20nm, driven by the AI industry. Wafer manufacturing is projected to increase annually by 7% in 2025.
5. Mature nodes market is witnessing a warming trend, with an average capacity utilization rate exceeding 75% in 2025.
6. The year 2025 is marked as a critical period for the development of 2nm technology by major wafer makers.
7. The reorganization of the packaging and testing industry, influenced by geopolitics, is providing significant benefits to China and Taiwan.
8. Advanced packaging technologies such as FOPLP and CoWoS are expected to double in production to meet the evolving demands for semiconductor wafers.

In summary, the semiconductor industry is on the brink of an exciting transformation in 2025, driven primarily by the growth of AI and HPC technologies. As various markets gear up for upgrades and product advancements, the semiconductor supply chain is poised to create new growth opportunities, setting the stage for a dynamic year ahead.