Global chip revenue touches $793 billion in 2025 led by AI semiconductors
Global semiconductor revenue climbed to $793 billion in 2025, registering a 21 per cent year-on-year growth, driven primarily by the surge in AI semiconductors, according to a report released on Tuesday.
New Delhi: Global semiconductor revenue climbed to $793 billion in 2025, registering a 21 per cent year-on-year growth, driven primarily by the surge in AI semiconductors, according to a report released on Tuesday.
The report by tech research firm Gartner said that AI semiconductors — including AI processors, high-bandwidth memory (HBM), and networking components — accounted for nearly one-third of total chip sales in 2025, highlighting AI’s growing dominance in the semiconductor industry.
AI Semiconductors Drive Global Chip Market Growth
“This domination is set to rise as AI infrastructure spending is forecast to surpass $1.3 trillion in 2026,” said Rajeev Rajput, Senior Principal Analyst at Gartner.
The rapid build-out of AI data centres and cloud infrastructure has created unprecedented demand for AI processors, HBM, and advanced networking chips, fundamentally reshaping the global semiconductor landscape.
Nvidia Crosses $100 Billion in Semiconductor Sales
Among chipmakers, Nvidia further strengthened its leadership, widening the gap with rivals by $53 billion and becoming the first semiconductor vendor to cross $100 billion in annual revenue in 2025.
Samsung Electronics retained the second position with around $73 billion in revenue, supported by a 13 per cent rise in memory sales. Meanwhile, SK Hynix climbed to the third spot, posting approximately $61 billion in revenue, fuelled by surging demand for HBM used in AI servers, the report noted.
Intel’s Market Share Slips as AI Chips Dominate
Intel’s market share declined to about 6 per cent, nearly half of its 2021 level, reflecting the shift in industry momentum toward AI-centric chipmakers. Gartner noted that the AI infrastructure boom continues to generate strong demand for AI accelerators, memory chips, and high-performance networking solutions.
In 2025, HBM accounted for 23 per cent of the global DRAM market, crossing $30 billion in sales, while AI processors exceeded $200 billion in revenue.
AI Chips to Dominate Semiconductor Sales by 2029
Looking ahead, Gartner forecast that AI semiconductors could represent more than 50 per cent of total global semiconductor sales by 2029, underscoring AI’s central role in the future of computing and digital infrastructure.
India’s Semiconductor Demand Set for Rapid Expansion
A recent report highlighted rapid growth in India’s electronics and semiconductor sector, with domestic semiconductor demand projected to rise from $33 billion in 2022 to $117 billion by 2030.
Tier-2 and Tier-3 cities are increasingly emerging as investment hubs for technology firms, as semiconductor manufacturing and advanced electronics projects boost local economies and employment.
Government Push to Support Semiconductor Manufacturing
The government’s Rs 7,280 crore scheme for Sintered Rare Earth Permanent Magnets (REPM) is expected to act as a force multiplier for India’s semiconductor manufacturing ambitions, ensuring secure access to critical materials required for electronics, EVs, and advanced technologies.
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