Driven by AI, memory recovery, and high-performance computing, the worldwide chip industry races toward a record US$1 trillion, with Logic and Memory steering one of its fastest-ever upcycles.
The semiconductor industry globally is on track for one of its strongest expansions in years, with the market projected to reach US$772 billion in 2025 and US$975 billion, nearing US$1 trillion, in 2026, according to the Autumn 2025 forecast from the World Semiconductor Trade Statistics (WSTS) organisation.
The latest outlook marks an upward shift, driven primarily by high-performance computing, artificial intelligence (AI) applications, and renewed demand for data centre infrastructure.
WSTS has revised its 2025 growth estimate to 22 per cent, an improvement of nearly US$45 billion, or around 7 percentage points, compared with its Summer 2025 update. The sector benefited from a stronger-than-expected third quarter, particularly in Logic and Memory, which remain the engines of the current upcycle.
Logic segment is now forecast to expand by 37 per cent, buoyed by the accelerated adoption of AI-enabled systems and next-generation processors. Memory, which had entered recovery earlier than expected, is set to grow 28 per cent, supported by demand for high-bandwidth DRAM and advanced NAND used in training large-scale AI models.
Other categories are returning to growth following the 2024 downturn, though at a slower pace. Sensors are expected to rise by 10 per cent, Microprocessors by 8 per cent, Analogue by 7 per cent, and Optoelectronics by 4 per cent.
The only segment facing a contraction is Discretes, which is expected to decline slightly due to ongoing softness in automotive demand.
Growth remains uneven across regions. The Americas and Asia Pacific are each expected to expand between 25 and 30 per cent in 2025, reflecting their concentration of Logic and Memory production. Europe is forecast to grow 6 per cent, while Japan is set to contract 4 per cent.
Looking ahead to 2026, WSTS expects the global semiconductor market to increase by more than 25 per cent, reaching US$975 billion.
Memory and Logic will again lead with year-on-year growth above 30 per cent. All regions are projected to show positive momentum, with Europe and Japan returning to low double-digit growth.
