Semiconductors Up Over 20% in 2025

The world semiconductor market was $208 billion in third-quarter 2025, according to WSTS. This marks the first time the market has been above $200 billion. 3Q 2025 was up 15.8% from 2Q 2025, the highest quarter-to-quarter growth since 19.9% in 2Q 2009. 3Q 2025 was up 25.1% from 3Q 2024, the highest growth versus a year earlier since 28.3% in 4Q 2021.

The table below shows the top twenty semiconductor companies by revenue. The list includes companies which sell devices on the open market. This excludes foundry companies such as TSMC and companies which only produce semiconductors for their internal use such as Apple. The revenue in most cases is for the total company, which may include some non-semiconductor revenue. In cases where revenue is broken out separately, semiconductor revenue is used.

Nvidia remained the dominant number one supplier, with $57.0 billion in revenue. Korean memory companies Samsung and SK Hynix were two and three at $23.9 billion and $17.6 billion, respectively. Memory companies reported robust 3Q 2025 growth from 2Q 2025 with Kioxia up 31%, Micron Technology up 22%, Sandisk up 21%, Samsung up 19%, and SK Hynix up 10%. The strongest quarter-to-quarter growth rates among the non-memory companies were Sony Imaging at 51%, Nvidia at 22%, AMD at 20%, Broadcom at 16% and STMicroelectronics at 15%. MediaTek was the only company to report a revenue decline in 3Q 2025 of -5.5%.

Semiconductor company guidance for 4Q 2025 revenue change is mixed. Of the fourteen companies providing guidance, nine expect increasing revenue ranging from 14% at Nvidia to 1.4% at Renesas Electronics. Five companies guided revenue declines, ranging from -1.3% at Onsemi to -9.2% at Sony Imaging.

AI continues to drive semiconductor market growth with all the memory companies citing AI memory for data centers as the strongest growth area. Nvidia and AMD also attributed most of their growth to AI. Qualcomm and MediaTek are seeing growth in mobile handsets. The automotive segment is seen as generally flat, with some companies adjusting inventories.

Through the first three quarters of 2025, the semiconductor market is up 21.2% from a year ago, according to WSTS data. The market is much stronger than anticipated earlier in the year. The AI market has been booming in 2025, with Nvidia revenues for the first three quarters of 2025 up 62% from a year earlier. The major memory companies have cited AI as their major growth driver and are up 21% over the same time period.

Earlier in the year, many industry analysts (including us at Semiconductor Intelligence) were concerned about the effect Trump administration tariffs would have on the semiconductor market. However, the final tariffs were not as severe as expected and largely exempted semiconductors and electronic products.

Recent forecasts for the 2025 semiconductor market growth range from 14% from Yole Group to 22% from us at Semiconductor Intelligence.

We at Semiconductor Intelligence have not finalized our 2026 semiconductor forecast. Current economic uncertainty will carry over into 2026. The semiconductor market has been overdependent on AI for growth in 2025 and this sector could moderate in 2026. Other sectors which have been weak in 2025 – such as PCs, smartphones and automotive – could see stronger growth in 2026. Our preliminary projection for 2026 is growth in the 12% to 18% range.

Semiconductor Intelligence is a consulting firm providing market analysis, market insights and company analysis for anyone involved in the semiconductor industry – manufacturers, designers, foundries, suppliers, users or investors. Please contact me if you would like further information.

Bill Jewell
Semiconductor Intelligence, LLC
billjewell@sc-iq.com

Also Read:

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Semiconductors Still Strong in 2025

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