With worldwide sales surging 26% to nearly USD 800 billion, semiconductors power AI and data centres, setting the stage for a trillion-dollar industry in 2026.
The global semiconductor industry recorded one of its strongest years in 2025, with sales rising 26.2 per cent to US$795.6 billion, according to the World Semiconductor Trade Statistics (WSTS). The expansion was driven by demand for data centre infrastructure and AI-related systems, culminating in fourth-quarter revenues of US$238.9 billion, up 38.4 per cent compared with the same period in 2024.
Growth was led by the computer segment, which expanded by more than 60 per cent year-on-year, reflecting investment in AI computing platforms and data centres.
Government-related demand increased by 15 per cent, supported by defence and infrastructure spending, while the industrial segment grew by 5 per cent, signalling a recovery from earlier inventory corrections.
Regionally, Asia Pacific and “All Others” recorded the strongest growth at 45.4 per cent, followed by the Americas at 31.4 per cent and China at 17.9 per cent. Europe posted moderate growth of 6.7 per cent, while Japan declined 4.3 per cent over the year.
By product category, logic devices contributed the most to overall expansion, driven by demand for high-performance chips for AI accelerators and advanced computing. Memory also rebounded strongly from the 2023 downturn, aided by improved pricing and demand for high-bandwidth solutions.
Other categories, including microprocessors, analogue and sensors, registered solid growth, though discrete devices remained slightly negative.
The industry’s performance in 2025 brought global sales close to the US$800 billion threshold. WSTS forecasts continued growth in 2026, with the market expected to approach US$1 trillion.
