Global market surges on strong AI-driven demand

November 26, 2025 /SemiMedia/ — The global semiconductor market surpassed the $200 billion mark for the first time in the third quarter of 2025, reaching $208 billion, according to the World Semiconductor Trade Statistics (WSTS). The market grew 15.8% from the previous quarter, the strongest quarterly increase since 2009, and expanded 25.1% year-on-year, marking the highest annual growth since late 2021.

Nvidia remained the top performer with revenue of $57 billion, followed by Samsung at $23.9 billion and SK Hynix at $17.6 billion. Memory suppliers posted particularly strong results, with Kioxia rising 31%, Micron 22%, SanDisk 21%, Samsung 19%, and SK Hynix 10%. Among non-memory companies, Sony Imaging led with a 51% quarter-on-quarter increase, while Nvidia, AMD, Broadcom and STMicroelectronics also reported solid gains. MediaTek was the only major company to record a decline, falling 5.5%.

Guidance for the fourth quarter is mixed. Of the 14 companies providing forecasts, nine expect revenue growth, ranging from Nvidia’s 14% to Renesas Electronics’ 1.4%. Five anticipate declines, with Onsemi and Sony Imaging projecting the largest drops.

Outlook shows mixed guidance and shifting momentum

AI continues to be the primary driver of industry expansion. Memory suppliers highlighted rapid demand growth for AI data-center products, while Nvidia and AMD attributed much of their momentum to AI-related computing. Qualcomm and MediaTek reported improving smartphone conditions, while the automotive sector remained largely flat as some companies adjusted inventory.

WSTS said the global chip market grew 21.2% in the first three quarters of 2025 compared with a year earlier, outperforming analysts’ early-year expectations. Nvidia’s revenue rose 62% during the period, while major memory suppliers expanded 21% on average, both fueled by AI adoption.

Concerns earlier in the year over potential tariff impacts eased as final U.S. trade measures proved less severe than expected and largely exempted semiconductors and electronics.

Forecasts for full-year 2025 growth range from 14% by Yole Group to 22% by Semiconductor Intelligence.

Semiconductor Intelligence has not finalized its 2026 outlook but expects macro uncertainty to continue. The firm noted that AI-driven growth may moderate next year, while weaker segments in 2025—PCs, smartphones and automotive—could see stronger recovery. Early estimates place the 2026 semiconductor market growth between 12% and 18%.