In 2025, the global semiconductor industry is expected to usher in a broader recovery. According to the prediction of a number of market research institutions, the semiconductor market will be driven by multiple factors such as technological innovation, demand growth and policy support, showing strong growth momentum. Here are some of the key trends and analysis:
Market size growth forecast
WSTS forecast: According to the forecast of the World Semiconductor Trade Statistics Association (WSTS), the global semiconductor market will reach US$697.1 billion (about 5.08 trillion yuan) in 2025, a year-on-year increase of 11%. This growth is largely due to the official launch of generative AI services. With the continuous development of AI technology, especially the increasing demand for high-performance semiconductors such as GPUs in AI learning and inference, the overall market has been rapidly expanded.
IDC Forecast: The International Data Corporation has also made an optimistic forecast for the market development in 2025, and the semiconductor market is expected to grow by more than 15%. The continuous development of artificial intelligence is driving the demand for high-end logic process chips, while the penetration rate of high-bandwidth memory (HBM) products is also increasing. According to IDC's analysis, the storage segment is expected to grow by more than 24% in 2025, while the non-storage segment is expected to grow by 13%.
TechInsights Forecast: Technical analyst firm TechInsights is more optimistic, with integrated circuit sales expected to grow by 26% in 2025. This growth was mainly due to improved end-use demand and higher prices. In addition, semiconductor capital expenditure is expected to grow by 14%, and companies will increase investment in R&D and production facilities to further drive innovation and competitiveness in the industry.
Growth drivers
1. AI Demand Driven:
The rapid development of AI technology is undoubtedly one of the key drivers driving the growth of the semiconductor industry. In particular, the demand for high-performance semiconductors for AI learning and inference, such as GPUs and AI-specific chips, has risen sharply. At the same time, the demand for high-end storage products for AI accelerators is also rising, driving the growth of the storage field. In addition, the demand for advanced process chips for high-end products such as AI servers and high-end mobile phone chips continues to be strong, which brings strong growth potential to the semiconductor industry.
2. Emerging market demand growth:
Emerging markets, especially 5G/6G communications and smart cars, are becoming important drivers of semiconductor demand growth. In the field of smart cars, a large number of semiconductor chips are required for autonomous driving systems and in-vehicle infotainment systems. This trend provides a huge market space for the semiconductor industry, especially in the next few years, with the popularization of smart cars, the semiconductor market will usher in new development opportunities.
Figure: 2025 semiconductor industry growth prospects and market drivers (Source: AFP)
3. The consumer electronics market is picking up:
With the recovery of consumer electronics markets such as smartphones and personal computers, the demand for the semiconductor industry has also rebounded to a certain extent. With the rising demand for consumer electronics, the chip market with mature processes has also shown good performance, which has further promoted the steady growth of the semiconductor industry.
4. Policy support:
The Chinese government's continued support for autonomous and controllable technologies provides a more favorable policy environment for the semiconductor industry. In addition, the United States, Europe and other countries and regions are also increasing investment and support for the semiconductor industry. These policies will make the global semiconductor market more dynamic and provide more opportunities for related companies.
5. Strengthen industrial synergy and cooperation:
The semiconductor industry chain includes design, manufacturing, packaging and testing, advanced packaging and other links. With the gradual strengthening of horizontal and vertical cooperation between the upstream and downstream of the industrial chain, the semiconductor industry will usher in new growth opportunities in terms of innovation and market development.
Some regions and business development opportunities
The rise of the Chinese market
According to a report by TechInsights, China's semiconductor equipment market is expected to grow by 19.6% in 2025. This growth was mainly driven by the continued high demand in China. At the same time, the implementation of China's semiconductor autonomy policy has accelerated the expansion of the mature process capacity of wafer foundry, and promoted the growth of the downstream outsourcing semiconductor packaging and testing industry. It is expected that by 2025, the market share of packaging and testing in Chinese mainland will continue to rise, becoming an important part of the global semiconductor industry.
The rise of listed companies in Singapore
Market watchers believe that some Singapore-listed companies, such as Frencken Group and Grand Venture Technology, could outperform in 2025. These companies, which play an important role in the semiconductor value chain, are likely to reap the rewards of this wave of growth with their technological superiority and market acumen.
The strategic layout of international chip companies
With the rise of the Chinese market, many international chip companies, such as STMicroelectronics and Micron Technology, are increasing their layout in the Chinese market. By investing in the Chinese market, these companies are expected to benefit from the rapid growth of the Chinese market in 2025, thereby further driving the recovery of the global semiconductor industry.
Conclusion
In summary, the recovery of the semiconductor industry in 2025 is promising, and the growth of the market will be driven by multiple factors such as artificial intelligence, 5G/6G, smart cars, consumer electronics, and policy support. With the strengthening of cooperation in the semiconductor industry chain in various regions of the world, enterprises will usher in more development opportunities.
