NewKerala.com

AI Chips Fuel Record $793B Global Semiconductor Boom in 2025

Global semiconductor revenue surged 21% to reach $793 billion in 2025, fueled primarily by AI-related components. Nvidia became the first vendor to exceed $100 billion in sales, solidifying its lead, while Samsung and SK Hynix followed, driven by memory and HBM demand for AI servers. The report forecasts AI infrastructure spending will surpass $1.3 trillion in 2026, with AI semiconductors potentially representing over half of total chip sales by 2029. Concurrently, India's semiconductor demand is projected to grow dramatically, supported by government incentives and expanding manufacturing hubs.

Key Points: AI Semiconductors Drive 21% Global Chip Revenue Growth to $793B

  • AI chips drove 1/3 of 2025 sales
  • Nvidia first to cross $100B in revenue
  • HBM sales surpassed $30B
  • India's chip demand to hit $117B by 2030
2 min read

Global chip revenue touches $793 billion in 2025 led by AI semiconductors

Global semiconductor revenue hit $793B in 2025, up 21%. AI chips, led by Nvidia, Samsung, and SK Hynix, drove a third of all sales. India's demand is soaring.

"This domination is set to rise as AI infrastructure spending is forecast to surpass $1.3 trillion in 2026. - Rajeev Rajput, Gartner"

New Delhi, Jan 13

The global semiconductor revenue reached $793 billion globally in 2025, marking an increase of 21 per cent year‑on‑year, a report said on Tuesday.

The report from tech research company Gartner said that AI semiconductors - including processors, high‑bandwidth memory and networking components - drove the growth and accounted for nearly one‑third of total sales in 2025.

"This domination is set to rise as AI infrastructure spending is forecast to surpass $1.3 trillion in 2026," said Rajeev Rajput, Sr. Principal Analyst at Gartner.

Nvidia strengthened its lead over Samsung by $53 billion in 2025, becoming the first vendor to cross $100 billion in semiconductor sales.

Samsung Electronics retained the second rank with about $73 billion in revenue, driven by memory (up 13 per cent), while SK Hynix rose to third spot with roughly $61 billion as demand for High-Bandwidth Memory (HBM) in AI servers surged, the report said.

Intel's market share eased to about 6 per cent, roughly half its 2021 level. The buildout of AI infrastructure is generating high demand for AI processors, HBM and networking chips.

In 2025, HBM represented 23 per cent of the DRAM market, surpassing $30 billion in sales while AI processors exceeded $200 billion in sales. The tech research firm forecasted that AI semiconductors could represent more than 50 per cent of total semiconductor sales by 2029.

A recent report highlighted rapid expansion in electronics and semiconductors, with India's semiconductor demand projected to grow from $33 billion in 2022 to $117 billion by 2030.

Tier-2 and Tier-3 cities will continue to emerge as investment magnets for technology firms and talent hubs, wherein semiconductor and advanced manufacturing projects are boosting local economies.

The government's Rs 7,280 crore scheme for Sintered Rare Earth Permanent Magnets (REPM) is expected to act as a force multiplier for India's broader semiconductor manufacturing ambitions by ensuring secure access to strategic materials.

- IANS

Share this article:

Reader Comments

P
Priya S
Nvidia crossing $100 billion is mind-blowing! It shows who the real winners of the AI revolution are. Hoping Indian startups and companies can also innovate in this space, not just be consumers. The focus on tier-2 and tier-3 cities for talent is smart—there's so much potential beyond the metros.
R
Rohit P
While the global numbers are impressive, I have a respectful criticism. The article mentions India's growing demand, but our domestic manufacturing is still in nascent stages. We are heavily import-dependent. The REPM scheme is good, but we need more concrete, large-scale fabs to be set up, not just plans and projections. Action speaks louder than reports.
S
Sarah B
The shift is staggering. AI semiconductors making up 1/3 of sales already and heading to 50%? It's a complete industry transformation. Intel's decline is a cautionary tale. For India, building the entire ecosystem—from rare earth materials to design and fabrication—is the real challenge. The jobs potential in tier-2 cities could be a game-changer.
K
Karthik V
HBM demand surging makes total sense with all these AI servers. SK Hynix moving to 3rd spot shows the memory market dynamics. For India, we need to focus on strategic areas like chip design and packaging where we have talent, rather than trying to do everything at once. Step by step, we'll get there! 💪
M
Meera T
This is exciting news! It's not just about big companies; this growth will create so many ancillary jobs in testing, validation, and supply chain. Hope the government

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50