Global silicon wafer shipments rise in 2025 due to increased demand driven by AI

Global silicon wafer shipments increased in 2025, driven by a surge in demand for artificial intelligence (AI) applications. According to the SEMI Silicon Manufacturers Group (SMG), silicon wafer shipments rose by 5.8% to 12,973 million square inches (MSI) in 2025. However, despite the increase in shipments, wafer revenue saw a decline of 1.2% to $11.4 billion for the same period.

The growth in silicon wafer shipments in 2025 was attributed to the increasing demand for advanced epitaxial wafers in logic and polished wafers for high-bandwidth memory (HBM) applications, particularly driven by AI technologies. On the other hand, the decline in wafer revenue was mainly due to the slow progress in traditional semiconductor applications where demand and pricing remained subdued.

Ginji Yada, Chairman of SEMI SMG and Executive Office Deputy General Manager at SUMCO Corporation, highlighted the contrasting trends observed across different technology nodes in the 2025-2026 wafer market. The demand for 300mm wafers continued to be strong in advanced applications, especially in AI-driven logic and HBM segments, fueled by the adoption of sub-3nm processes. These technology transitions necessitated increased requirements for wafer quality and consistency, emphasizing the need for advanced material solutions. Investments in data centers and generative AI further supported the demand for wafers in leading-edge segments where performance and reliability were critical.

Conversely, the legacy semiconductor sector showed signs of stabilization in 2025. Inventory levels of wafers and chips in mature-node applications like automotive, industrial, and consumer electronics began to normalize after facing prolonged inventory adjustments. While supply-demand conditions in these segments are gradually improving, the recovery pace remains slow. The demand recovery is still sensitive to macroeconomic factors and end-market dynamics, maintaining a cautious and incremental rebound for mature technology segments. As a result, the overall market outlook showcased a two-track trajectory: sustained demand and technological advancement in advanced nodes, alongside a careful recovery in mature technology segments.

The industry faced challenges in balancing the different technological requirements across various applications and meeting the evolving demands for performance and quality. The increasing emphasis on technological advancements, quality consistency, and the drive towards AI-driven applications have shaped the semiconductor market landscape in 2025. As the semiconductor industry continues to evolve, it is essential for players to adapt and invest in innovative solutions to meet the changing market dynamics and cater to the diverse needs of modern applications.