2025: Strong growth driven by logic and memory; other segments show gradual recovery. Following a better-than-expected third quarter, the global semiconductor market is projected to grow by 22.5% in 2025, reaching $772.2 billion.
The upward revision is primarily driven by logic and memory, fueled by AI-related applications and continued demand in computing and data center infrastructure. Logic is now expected to grow by 37.1% (up 8 percentage points) and memory by 27.8% (up 11 percentage points). Other product categories are improving after the 2024 downturn, but the recovery remains moderate:
sensors +10.4%, microprocessors +7.9%, analog +7.5%, and optoelectronics +3.7%.
The discrete products segment is expected to experience a slight decline, mainly due to continued weakness in automotive applications.
At the regional level, Asia-Pacific and the Americas are expected to grow between 24.9% and 29.1%, reflecting the strength of logic and memory. Europe is projected to grow by 5.6%, while Japan is expected to experience a decline of 4.1%.
Outlook to 2026: Continued global semiconductor growth to nearly US$1 trillion.
By 2026, the WSTS forecasts that the global semiconductor market will grow by more than 26% to US$975.5 billion. Growth is expected across all regions and product categories. Memory and logic are expected to again lead growth, with year-over-year increases exceeding 30% in both cases. Most other product categories are expected to continue their gradual recovery, expanding at a more moderate pace.
At the regional level, all major markets are expected to expand. The Americas and Asia-Pacific continue to be the largest contributors, while Europe and Japan are expected to experience low double-digit growth.
Note: Figures in the table have been rounded to millions of dollars, which may cause totals by region and
by product group to differ slightly.
About ESIA: The European Semiconductor Industry Association (ESIA) is the voice of the semiconductor industry in Europe. Its mission is to represent and promote the common interests of the European-based semiconductor industry to European institutions and stakeholders, ensuring a sustainable business environment and fostering its global competitiveness. As a provider of key enabling technologies, the industry creates innovative solutions for industrial development, contributing to economic growth and addressing major societal challenges. Considered one of the most R&D-intensive sectors by the European Commission, the European semiconductor ecosystem directly employs approximately 200,000 people and up to 1,000,000 indirectly in systems, applications, and services across Europe.
Overall, micro- and nanoelectronics generate at least 10% of GDP in Europe and worldwide.
About WSTS: World Semiconductor Trade Statistics (WSTS) was founded in 1986 as a non-profit organization of semiconductor product companies and is the industry's only source providing monthly statistics on industry shipments. http://www.wsts.org/
