NEW DELHI: Global semiconductor revenue is projected to grow 14 per cent to reach $717 billion in 2025, from $630 billion this year, a report said on Monday.
In the near term, the memory market and graphics processing units (GPUs) will bolster semiconductor revenue globally, according to a Gartner report.
The worldwide memory revenue market is forecast to record 20.5 per cent growth in 2025 to reach $196.3 billion.
Sustained undersupply in 2024 will fuel NAND prices up 60 per cent in 2024, but they are poised to decline by 3 per cent in 2025.
With lower supply and a softer pricing landscape in 2025, NAND flash revenue is forecast to total $75.5 billion in 2025, up 12 per cent from 2024, the report noted.
Following a decline in 2023, semiconductor revenue is rebounding and expected to record double-digit growth in 2024 and 2025.
“The growth is driven by a continued surge in AI-related semiconductor demand and recovery in electronic production, while demand from the automotive and industrial sectors continues to be weak, ” said Rajeev Rajput, senior principal analyst at Gartner.
Meanwhile, DRAM supply and demand will rebound due to improved undersupply, unprecedented high-bandwidth memory (HBM) production and rising demand, and the increase in double data rate 5 (DDR5) prices.
Overall, DRAM revenue is expected to total $115.6 billion in 2025, up from $90.1 billion in 2024, according to the report.
GPUs have dominated the training and development of AI models. Their revenue is projected to total $51 billion, an increase of 27 per cent in 2025.
“However, the market is now shifting to a return on investment (ROI) phase where inference revenues need to grow to multiples of training investments, ” said George Brocklehurst, VP analyst at Gartner. HBM revenue is expected to increase by more than 284 per cent in 2024 and 70 per cent in 2025, reaching $12.3 billion and $21 billion, respectively.