Industry Organization: Global chip sales will surpass $1 trillion for the first time this year

On Friday, February 6th, local time, the Semiconductor Industry Association (SIA) released a report stating that the semiconductor industry will achieve a historic milestone of $1 trillion in revenue this year.

SIA represents the majority of American chip companies. Its data shows that global chip sales will reach $791.7 billion in 2025, a 25.6% increase from the previous year.

The organization forecasts that global chip sales will grow another 26% in 2026, reaching $1 trillion.

John Neuffer, CEO of SIA, said that the chip market will reach the $1 trillion milestone faster than previously expected, which is a positive signal for the entire business world.

“When our industry grows, it means other industries will benefit exponentially,” Neuffer said in an interview. “Our technology is the foundation for almost all key strategic industries, which is a pretty good fundamental signal.”

Looking at specific segments, the fastest-growing and largest category of chips is logic chips produced by NVIDIA, AMD, and Intel. In 2025, sales of these chips are expected to grow by 39.9%, reaching $301.9 billion.

The second-largest category is memory chips. Amid the supply and demand tightness driven by artificial intelligence (AI), memory chip prices have surged, with sales increasing by 34.8% to $223.1 billion.

Tech giants like Google, Microsoft, and Meta are accelerating the construction of AI infrastructure, absorbing large amounts of memory chip supply, leading to shortages and rising prices.

Regionally, the Asia-Pacific, the Americas, and Europe all experienced growth, with Japan being the only region to see a decline.

Neuffer stated that the chip industry will continue its typical cyclical fluctuations in the future, but the long-term upward trend is very clear.

“Our industry has always been subject to ups and downs, and that will undoubtedly continue,” he said. “But the overall ‘pie’ is getting bigger.”

Neuffer revealed that during a recent visit to Silicon Valley, he found that many executives of small and medium-sized chip companies are optimistic about the prospects before 2026.

“The common saying I hear is, ‘No one knows how AI infrastructure development will evolve in a year, but my orders are already fully booked,’” Neuffer said. “At least for the next year, we are still on a quite, quite steady growth track.”

(Article source: Cailian Press)