Global Semiconductor Sales Reach Record $627.6 Billion in 2024
Washington, Friday, 7 February 2025.
Worldwide semiconductor sales surged by 19.1% in 2024, driven by strong demand, especially for AI processors, projecting continued growth in 2025.
Record-Breaking Growth and AI Impact
The semiconductor industry has achieved unprecedented success in 2024, with global sales reaching $627.6 billion, marking a substantial 19.1% increase from the previous year’s $526.8 billion [1][3]. This remarkable recovery follows an 8.2% contraction in 2023 [6]. According to John Neuffer, SIA president and CEO, this milestone represents the first time the industry has surpassed $600 billion in annual sales, attributing the surge primarily to ‘spectacular demand for AI processors and memory’ [6][1].
Regional Performance and Market Dynamics
The growth has been notably uneven across regions, with the Americas leading the charge with a remarkable 44.8% increase, followed by China at 18.3%, and Asia Pacific/All Others at 12.5%. However, some markets faced challenges, with Japan experiencing a slight decline of 0.4% and Europe seeing a more significant decrease of 8.1% [1]. The fourth quarter of 2024 demonstrated particularly strong momentum, with sales reaching $170.9 billion, representing a 17.1% year-over-year increase [1].
Memory Sector and AI-Driven Growth
Memory products emerged as a standout performer in 2024, with sales soaring 78.9% to reach $165.1 billion [1]. DRAM products led this category with an impressive 82.6% growth, marking the highest percentage increase across all semiconductor segments [1]. The generative AI chip market has been a significant driver, with Deloitte predicting a market value of $40 billion in 2024 [2]. Industry leaders are optimistic about future growth, with AMD’s Dr. Lisa Su forecasting the AI GPU market to expand to $500 billion by 2028 [2].
Future Outlook and Industry Transformation
The semiconductor industry is poised for continued growth in 2025, with projections indicating an 11.2% increase [6]. This expansion is supported by various factors, including the U.S. CHIPS and Science Act, which has allocated $52 billion for domestic chip manufacturing [6]. The industry is undergoing a significant transformation, with America projected to triple its domestic chip manufacturing capacity by 2032 [1]. However, challenges remain, including regional competition and the need for sustained investment in manufacturing capabilities.