AI drives record chips sales in 2025; logic and memory chips propel market to new heights

Based on the latest data from the US Semiconductor Industry Association released in early February, global semiconductor sales reached $791.7bn in 2025, an increase of 25.6% compared with 2024. 

The logic chips that power up AI models and applications, from the GPUs used for training large language models to smartphone processors, drove the market momentum, with sales reaching $301.9bn in 2025, up by 39.9% from a year earlier, SIA figures show.  

Memory chips also posted a strong performance, generating revenues for $223.1bn in 2025, up by 34.8% from the year prior. 

From a geographical standpoint, the Asia-Pacific region (excluding China and Japan) and the Americas posted the strongest growth rates, with sales growing by, respectively, 45% and 30.5% from 2024. Sales were also up in China (17.3%) and Europe (6.3%), but decreased in Japan (-4.7%).

$1 tn mark is near
Looking forward, the World Semiconductor Trade Statistics organisation expects the market to approach the $1tn barrier ($975bn) in 2026.  

“Growth is expected across all regions and product categories,” the WSTS forecast published in late 2025 reads. “Memory and logic are again projected to lead, both increasing by over 30 per cent year over year.”

“Regionally, all major markets are expected to expand,” it adds. “The Americas and Asia-Pacific remain the strongest contributors, while Europe and Japan are forecast to see low double-digit growth.”

US vs. China showdown
Geopolitics remains the greatest element of uncertainty in a market whose fundamentals appear stronger than ever. The White House continues to limit the sale of high-end chips to China, although some of the most draconian restrictions introduced during the Biden administration have been toned down. 

Meanwhile, it is also restricting the access of imported chips to the US market to stimulate local investment and production. In January, the Trump administration announced a new tariff regime for imports of semiconductors, semiconductor manufacturing equipment and their derivative products, although the tariffs are waived if importers can document that their products qualify for specified US end-use exemptions like US data centres, research and development or start-ups. 

“A globally competitive US semiconductor industry will allow us to boost our economy, enhance national security and lead the global race for technological leadership in the 21st century,” says John Neuffer, SIA president and CEO.

While the US accounts for a quarter of global demand for semiconductors, its share of global capacity is around 10%, according to figures from Boston Consulting Group. 

US administrations have achieved some success, first with the subsidies offered by Joe Biden’s Chips Act, then with the tariffs imposed by the Trump administration, in attracting foreign investment to develop local capacity in semiconductors.

The supercluster being developed by Taiwanese TSMC in Arizona, is the most notable success case of this push. With $165bn and one fab already up and running, it is slated to become the country’s largest FDI project ever, and arguably the most transformative. 

At the same time, other major FDI projects in US chip foundries, like those of Samsung’s in Texas, have been progressing more slowly, while the country’s own semiconductor champion, Intel, has been navigating stormy waters. 

Luc Van den hove, the CEO and chair of Belgium-based Imec, the world’s largest semiconductor R&D organization, warned against the risks of countries and regions isolating their value chains. 

“This industry needs each other. there are so many reverse dependencies and interlinkages. If you want to make progress, if you want to lead in this technology, the best way to lead is to combine the best of the best,” he told fDi, saying that those region that go towards more protection “will not be leading in this industry,” and adding that such a policy “would be very inefficient and to some extent foolish too.” 

-- Xinhe Huang, FDI Intelligence, UK.