Global Semiconductor Market Soars in 2024
The global semiconductor [[market]] experienced a remarkable surge in 2024, reaching a total revenue of $626 billion—an impressive 18.1% jump from the previous year. This latest market analysis, from a leading research firm, projects even further growth, with revenue expected to hit $705 billion in 2025. This phenomenal growth is largely driven by the increasing demand for [[graphics processing units (GPUs)]] and [[artificial intelligence (AI)]] processors, particularly within the booming data center sector.
Data Centers Power Semiconductor Growth
Data centers have quickly become the second-largest market for semiconductors, right behind smartphones. The reason? The exploding need to handle the massive amounts of data generated by AI and generative AI applications. In 2024 alone, revenue from data center semiconductors skyrocketed from $64.8 billion to a staggering $112 billion, showcasing the immense potential of this sector.
Samsung Reclaims Top Spot
The impressive overall market performance significantly impacted the rankings of major semiconductor vendors. While some experienced a decline, many others saw double-digit growth. Samsung Electronics, thanks to a strong recovery in memory device prices, triumphantly regained the number one position in 2024, outperforming competitors like Intel, Nvidia, and Qualcomm. Samsung’s revenue reached an impressive $66.5 billion in 2024.
Intel and Nvidia’s Performance
Intel, despite launching AI PCs and the Core Ultra chipset, saw only minimal growth (0.1%) in 2024. Nvidia, on the other hand, experienced phenomenal success, primarily due to its thriving AI business. Its semiconductor revenue soared by 84%, reaching $46 billion, securing it the third position.
Qualcomm and Apple’s Ranking
Other major players saw shifts in their rankings. Qualcomm dropped from third place in 2023 to fifth in 2024. Apple also experienced a slight dip, falling to ninth position among the top ten semiconductor vendors by revenue.
Memory Market Growth and the Rise of HBM
The memory segment exhibited explosive growth in 2024, with a 71.8% revenue increase. DRAM revenue specifically surged by 75.4%, while NAND revenue climbed by 75.7%. High-bandwidth memory (HBM), crucial for AI and high-performance computing, played a key role in this growth, accounting for 13.6% of total DRAM revenue in 2024. This trend is projected to continue, with Gartner forecasting HBM’s share of DRAM revenue to reach 19.2% in 2025, and HBM revenue to increase by 66.3% to $19.8 billion.
Future Outlook
The semiconductor market is poised for continued growth in the coming years, driven primarily by the ever-increasing demand for [[AI]] and memory chips. The advancements in HBM technology and its growing adoption are further fueling this positive outlook. This sector is definitely one to watch for exciting developments and innovations in the future. The latest business news shows the massive impact of AI on the semiconductor industry, marking it as a significant player in the global tech landscape.