Global chip sales smash records to reach $792b in single year

AI boom and surging demand for logic and memory chips drove the semiconductor industry to its highest-ever annual sales in 2025.

The global semiconductor industry posted record-breaking sales of $791.7b (£628b) in 2025, a rise of 25.6% on the previous year, as insatiable demand for artificial intelligence hardware and advanced computing propelled the market to new heights.

The figures, announced by the Semiconductor Industry Association (SIA), show sales surged from $630.5b in 2024, with fourth-quarter revenues alone reaching $236.6b — up 37.1% year on year and 13.6 % higher than the third quarter of 2025.

"The global semiconductor industry posted its highest-ever annual sales in 2025, nearly hitting $800 billion, and global sales in 2026 are projected to reach roughly $1 trillion," said John Neuffer, SIA president and chief executive.

Logic chips were the standout performers, with sales surging 39.9% to $301.9b — making them the largest product category by revenue. Memory products were second, rising 34.8% to $223.1b, reflecting robust demand from AI servers, data centres and a recovery in the PC and smartphone markets.

Regionally, Asia Pacific recorded the sharpest growth, with sales rising 45%. The Americas followed with a 30.5% increase, whilst China grew by 17.3% and Europe posted a more modest gain of 6.3%. Japan was the only major region to suffer a decline, with sales falling 4.7% year on year.

Analysts noted that the industry's momentum accelerated sharply towards the end of the year, with the outsized fourth-quarter growth — well above the full-year average — suggesting that rising prices, as well as demand, may have been a factor.

Neuffer stressed the importance of strengthening domestic semiconductor manufacturing, arguing that competitive national policies are essential for economic growth and security. The SIA represents 99% of the US semiconductor industry by revenue and nearly two thirds of non-US chip firms.

The monthly figures are compiled by the World Semiconductor Trade Statistics organisation and represent a three-month moving average.