Following a stronger-than-expected third quarter, the World Semiconductor Trade Statistics (WSTS) raised its 2025 growth outlook for the global semiconductor market, which will carry over through 2026. Specifically, the organization forecasted the industry to grow 22 percent in 2025, reaching US$772 billion.

AI, Data Center Stir Growth

WSTS said in its Autumn 2025 forecast, the upward revision is mainly driven by logic and memory, boosted by AI-related applications and continued demand in computing and data center infrastructure.

Accordingly, logic is now expected to grow 37 percent (up 8 percentage points) and memory 28 percent (up 11 percent points). Other product categories are improving after the 2024 down-cycle, but the recovery remains moderate: sensors 10 percent; microprocessors 8 percent; analog 7 percent; and optoelectronics with 4 percent.

The discretes product segment is expected to decline slightly, mainly due to ongoing weakness in automotive applications.

Regionally, the Americas and Asia Pacific are expected to expand by 25 to 30 percent, reflecting the strength in Logic and Memory. Europe is projected to grow 6 percent, while Japan may decline by 4 percent.

Approaching US$1 Trillion Mark

For 2026, WSTS said growth is highly anticipated across all regions and product categories. Thus, the organization expects the global semiconductor market to grow to more than 25 percent in 2026, reaching US$975 billion.

Memory and Logic are again projected to lead, both increasing by over 30 percent year over year. Most other product categories are expected to continue their gradual recovery, expanding at a more moderate pace.

Meanwhile, Japan, which was supposed to have a slight decline in 2025, are expected to see low double-digit growth along with Europe while the Americas and Asia Pacific region are the strongest contributors. Therefore, all major markets are expected to expand.

05 December 2025