From AI‑fuelled demand to DRAM’s dramatic surge, the semiconductor market worldwide crossed $830 billion in 2025, reshaping industry power.
Global semiconductor revenue exceeded $830 billion in 2025, according to new research from Omdia, marking the second consecutive year of more than 20% annual growth.
Artificial intelligence (AI) technologies remain the primary driver of growth. Unlike 2024, when automotive, consumer, and industrial segments contracted, all major application areas registered revenue increases in 2025.
Memory components, particularly DRAM, saw the strongest gains. “While AI-driven demand initially strengthened pricing for high-bandwidth memory (HBM) in 2024, the impact has increasingly extended across the broader DRAM market,” said Lino Jeng, Senior Principal Analyst at Omdia.
He noted that AI servers require more HBM and DDR5 system memory, prompting suppliers to shift wafer allocation.
DRAM revenue rose from just over $50 billion in 2023 to above $150 billion in 2025, tripling in two years and achieving year-on-year growth above 50%.
Revenue growth has consolidated among the largest firms. Between 2023 and 2025, overall semiconductor revenue grew 53%, but the top ten companies saw a 90% increase. Memory suppliers and NVIDIA were central to this trend, with their combined share of total revenue rising from 24% in 2023 to 42% in 2025.
Meanwhile, the data processing segment recorded the highest annual growth, exceeding 40% year-on-year. Industrial semiconductors also returned to growth, rising more than 6% after two years of declines caused by inventory corrections following pandemic-driven demand.
With AI continuing to underpin demand, analysts suggest that if growth above 20% persists through 2026, global semiconductor revenue could surpass $1 trillion for the first time.
Omdia acknowledged that since it began tracking the industry in 2001, two successive years have recorded such expansion.
