semiconductor industry will exceed 1 trillion US dollars for the first time
The revenue of the semiconductor industry will exceed 1 trillion US dollars for the first time.
On Friday local time (February 6th), the Semiconductor Industry Association (SIA) of the United States released a report stating that the semiconductor industry will achieve a revenue of 1 trillion US dollars for the first time in history this year.
SIA represents the majority of American chip companies. Its data shows that global chip sales will reach 791.7 billion US dollars in 2025, an increase of 25.6% compared to the previous year.
The organization predicts that global chip sales will increase by another 26% in 2026, reaching 1 trillion US dollars.
John Neuffer, the CEO of SIA, stated that the chip market will reach the $1 trillion milestone much sooner than previously expected, which is a positive signal for the entire business world.
"When our industry experiences growth, it means that other industries will gain exponential benefits," Neuffer said in an interview. "Our technology is the foundation of almost all key strategic industries. This is a quite good fundamental signal."
From a sub-sector perspective, the fastest-growing and largest chip category is the logic chips produced by Nvidia, Advanced Micro Devices (AMD), and Intel. In 2025, the sales of these chips increased by 39.9% to reach $301.9 billion.
The second major category is memory chips. Against the backdrop of supply and demand tensions caused by artificial intelligence (AI), the prices of memory chips have soared, with their sales increasing by 34.8% to reach 223.1 billion US dollars.
Tech companies such as Google, Microsoft and Meta are accelerating the construction of AI infrastructure, absorbing a large amount of storage chip supply, which has led to a shortage in supply and subsequently caused the prices of storage chips to rise.
From the regional distribution perspective, all regions including Asia-Pacific, the Americas and Europe have experienced growth, except for Japan which has seen a decline.
Neuffer stated that the chip industry will continue to exhibit its typical cyclical fluctuations in the future, but the long-term upward trend is already very clear.
"Our industry has always been subject to ups and downs, and this will undoubtedly continue," he said. "But the entire 'cake' is constantly getting bigger."
Neuffer disclosed that during his recent visit to Silicon Valley, he observed that the top executives of numerous small and medium-sized chip companies were expressing an optimistic outlook for the year 2026.
"The common consensus I've heard is that, 'No one knows how far AI infrastructure will have developed in a year, but my orders are already fully booked,'" Neuffer said. "At least for the next year, we are still on a fairly, fairly stable growth trajectory."
