Tariffs loom, but chips surge. Fueled by AI and bold investments, the semiconductor industry kicks off 2025 with double-digit growth of despite global headwinds.
The global semiconductor industry entered 2025 with solid momentum, showing resilience despite looming tariff threats and shifting geopolitical landscapes. According to SEMI and TechInsights, integrated circuit (IC) sales fell 2% quarter-over-quarter (QoQ) in Q1 2025—a seasonal dip—but grew 23% year-over-year (YoY), signalling healthy demand.
Logic ICs led the market with strong revenues, while memory ICs nearly doubled their 2023 levels by Q2 2025. “AI infrastructure and digital transformation are fueling demand for both high-performance logic and advanced memory,” said Lila Mendoza, a semiconductor analyst.
Consumer electronics followed seasonal patterns, declining 16% QoQ and remaining flat YoY. However, semiconductor capital expenditures (CapEx) jumped 27% YoY, reflecting the industry’s continued investment in innovation despite economic headwinds.
The data shows total IC revenues rising steadily through 2025. Logic ICs remain the largest revenue driver, while memory ICs show strong recovery. CapEx, though fluctuating slightly quarter-to-quarter, peaked in Q4 2024 and remains robust. Installed wafer fab capacity also expanded—from 39,000 to over 44,000 wafers/month by mid-2025—indicating that previous investments are now boosting output.
“While Q1 followed typical seasonal trends, we expect sharper deviations ahead,” warned Clark Tseng of SEMI. With trade tensions escalating, some firms are accelerating production, while others are pausing investment, creating a complex market dynamic.
Regionally, Taiwan and Japan are leading capacity growth, bolstered by government support and next-gen foundry projects. Despite the uncertain policy environment, the outlook remains positive, with adaptability key to navigating future disruptions.
