Sales of global chips increased by 19.1% in 2024 and will reach two -digit growth in 2025 thanks to AI | Shine

Sales of a global chip semiconductor increased by $ 19.1% to $ 627.6 billion in 2024, and growth is expected to increase double -digit in 2025, according to a report from The Association of semiconductor industries (F).

SIA said the number of 2024 reached a new record and compared to a total of 2023 of $ 526.8 billion. The reason, of course, was the spectacular search for AI processors and memory, said John Nefer, CEO of SIA, the chip Industry lobbying group, in an interview with Gamesbeat.

The real growth of 19.1% is over 13% the prognosis made by the SIA, and the growth of 2024 compared to 8.2% shrinkage in 2023. This is a huge swell of demand thanks to AI. And this is one of the reasons NVIDIA is one of the most valuable companies in the world with a $ 3.15 trillion score.

And in 2025, sales of chips are expected to reach 11.2% growth, said Greg Larok, director of market research and economic policy at SIA, in an interview. This is important for the economy, as chips are the heart of everything electronically and are a vital part of the food chain of technology.

Data comes at an important point in national discourse as president Donald Trump has promised to put tariffs On semiconductor chips, coming not only from China but also from our ally Taiwan. As he takes action against Mexico, China and Canada last weekend, he has not yet set tariffs for Taiwan or chips. (Mexico and Canada rates were delayed for 30 days).

Jenson HuangThe CEO of Nvidia visited Trump last Friday to the White House to emphasize the importance of the semiconductor industry and the US management in AI. Nvidia receives its chips from Taiwan. Thehe Consumer Technology Association These tariffs can make consoles with 40% more expensive for US users, with a 26% increase in smartphone price and a 46% increase in prices for laptops.

SIA was also a great defender of the Chip and Science Act, a law maintained by bilateral $ 52 billion In order to restore chips in the US, Intel noted that he has already received $ 2 billion for his chip factories in the US. It remains to be seen whether the new administration will continue to support the law, as the defenders call for more money to be intended for it.

“After all the plants that are under construction and start and start, at the end of all this by 2032, the United States could be about 14% or something. It takes time. This is an absolutely massive industry. And moving the needle from 10% to 14% is actually a remarkably good number. This is a sign of how difficult it is to move. And this is the same for Europe, of course, “Duncan Stewart told me, a chip leader in Deloitte in an interview with a report This week.

As for the chip numbers, the fourth quarter sales of $ 170.9 billion were 17.1% more than the fourth quarter of 2023, and 3.0% higher than the third quarter of 2024 and global Sales for December 2024 are $ 57.0 billion, such as a reduction, a discount of 1.2% compared to November 2024.

Monthly sales are composed of the World Semi -Conductor Statistics Organization (WSTS) and represent a three -month mobile average. SIA represents 99% of the US semiconductor in revenue and nearly two -thirds of non -US companies.

“The global semiconductor market tested its highest year of sales in 2024, exceeding $ 600 billion annual sales for the first time, and growth in the double-digit market is predicted for 2025,” Nefer said. “Semiconductors allow practically all modern technologies-including medical devices, communications, defensive applications, AI, advanced transport and countless others-the long-term forecasts for the industry are incredibly strong.”

At regional level, annual sales increased in America (44.8%), China (18.3%) and Asia-Pacific/All Other (12.5%), but in Japan (-0.4%) and Europe (-8.1%). Monthly sales in December increased in America (3.2%), but were reduced in Asia-Pacific/All Other (-1.4%), China (-3.8%), Japan (-4.7 %) and Europe (- 6.4%).

“With the increase in the sales of semiconductors worldwide, America is expected to triple its internal production capacity of chips by 2032, putting our country in a strong position to strengthen its supply chains and help increase the growing demand for global demand “Neofer said. “In order to support America at the summit in Chip Technology, Washington leaders must progress in policies that promote the production and innovation of semiconductors, strengthen high -tech labor and restore the US trade management.”

Several semiconductor product segments stood out in 2024. Sales of logical products amounted to $ 212.6 billion in 2024, making it the largest sales product category. Memory products were second in sales, increasing by 78.9% in 2024 to a total of $ 165.1 billion. DRAM PRODUCTS, memory subset, registered an increase in sales by 82.6%, the largest percentage of growth in each category of products in 2024.

Nefer said that logic (including processors), memory and analog segments are often of different trajectories, as there are many different types of semiconductors serving all electronics industries. Logic and memory are conditioned by the search for AI servers in data centers and AI PCS in offices and homes. But sometimes there is a good year for logic and a bad year for memory, depending on the capacity.

Larocca said SIA is not yet classified AI chips separately, but much of AI technology is embedded in computer systems using logical chips. This category increased by 81.% in 2024, he said.

“This is an amazing growth rate that we have never seen before,” Nefer said. “This is a really fast growth throughout the board.”

But he noted that the industry could be “incredibly variable” when it comes to vibrations in areas such as memory chips.

A problem trade war?

Undervalued Nefer said the prospects of the trade war were “problematic”.

“Our supply chains are deeply dependent on global trade. The work of these supply chains is all for us. On the other hand, something like three quarters of our customers is abroad. So global trade is just a huge part of our success, “Nefer said.

Nefer said he did not want to get into hypothetical substances for what happened. He noted that the details are important, such as what is happening with a chip that comes back -to -back before winding in a product of electronics purchased in the United States, it also depends on which countries are hitting the tariffs and Revenge.

With regard to the training of politicians, he said that there is still some terrain to cover with regard to helping everyone to understand how the supply chains work.

“We look at measures that increase the costs of production in the US as problematic at a time when our companies have made very large, very significant commitments to produce more (in the US) and how it is defined by this administration as a priority of having more production Here, “Nefer said. “We really think that there is an opportunity to create a comprehensive strategy here that involves a number of things, such as to continue with incentives that make America attractive to manufacture, doubling some incentives for design, creating a policy to restore our trade leadership All over the world as we are so dependent on global trade as an industry. “

Support for subsidies

Nefer said the Chip and Science Act is incredibly important to the industry and is a major for the country.

“But standing alone is not a strategy. This is a piece of greater strategy. And a bigger strategy has an immigration policy that guarantees that the talent we train here remains here, and a broader workforce strategy for talent training here in the country, “he said.

Funding for applied science and basic science is also crucial in maintaining the US competitiveness, he said. Some politicians have objected to giving money to corporations to build chip factories. But Nefer noted that other countries have used subsidies to remove their production from the United States and are now back.

“That is why we have entered the ditch on this issue is over the years. Our federal government was not in the game. Other governments around the world with Chip Industries have been conducting circles around us and were probably embarrassed that we have been stuck and as a result our production has declined dramatically over the last 30 years or more, “he said. “The chip law has turned to this and if the incentives are again reduced, as well as our production imprint. This is only reality. “

Larocca has said that non -compliance with incentives means that it is 25% to 50% more expensive to build and operate FAB in the United States in the absence of incentives in the US compared to other countries. There are also reasons such as the resistance of the supply chain and national security to keep the chip production on the coast, Nefer said. He noted that the incentives of the Chip and Science Act had generated nearly $ 500 billion in investments in the United States by 2032, A chip production capacity in the US can tripleS This is a higher growth rate than anywhere else in the world, Nefer said.

Chip sales were interrupted during the pandemic. As demand for personal computers grew while people were working from home, the factories were interrupted and the supply chain could not function during Covid. The industry had a decline beginning in the second half of 2022, which led to an 8.2% decrease in global sales in 2023, SIA said. Memory growth in 2024 reached 70% compared to 2023.

Overall, the CHI industry is moving in 18 months of economic cycles from over-supply to shortage. Part of the reason is that it costs billions of dollars and a significant time to build a brand new factory. As demand changes, it is difficult to achieve more capacity quickly and as a result prices change.