iNDICA NEWS BUREAU-
Global semiconductor revenue is projected to grow 14% to reach $717 billion in 2025, from $630 billion this year, a report said on Monday, October 28.
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% growth in 2025 to reach $196.3 billion.
Sustained undersupply in 2024 will fuel NAND prices up 60% in 2024, but they are poised to decline by 3% 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% 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% 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% in 2024 and 70% in 2025, reaching $12.3 billion and $21 billion, respectively.
