Semiconductor Industry Rebounds Strongly in 2024, Projecting Continued Growth Through 2025
The global semiconductor industry experienced a significant recovery in 2024, reaching a total revenue of $626 billion, an 18.1% increase compared to the previous year, as detailed in a new report from Gartner. This positive trend is forecasted to continue, with the industry expected to see a further rise in revenue, reaching $705 billion in 2025.
Memory and Non-Memory Semiconductors Lead Growth
The memory segment remained the dominant force in the market, but non-memory semiconductor revenue also posted a notable gain of 6.9% in 2024. Non-memory semiconductors now account for 74.8% of total industry revenue, highlighting the increasing diversification of the semiconductor landscape.
Leading Players: Samsung, Nvidia, and Intel
Among the top semiconductor companies, Samsung Electronics reclaimed its position as the world’s leading semiconductor vendor, overtaking Intel. This growth was largely driven by a sharp rebound in memory prices, with Samsung’s semiconductor revenue reaching $66.5 billion in 2024.
Intel, in contrast, saw only a modest growth of 0.1%, with its AI PCs and Core Ultra chipset failing to make a significant impact on the market, pushing the company to second place.
Nvidia, meanwhile, continued its meteoric rise, increasing its semiconductor revenue by an impressive 84%, bringing its total to $46 billion. Nvidia’s strong position in artificial intelligence (AI) technologies has been a major driver behind its success, helping it move up two spots in the global rankings.
Memory Revenue Soars, DRAM and NAND Lead the Charge
The memory segment of the semiconductor industry saw an exceptional surge in 2024, with revenue rising by 71.8%. Key contributors to this growth were DRAM and NAND, with both segments experiencing increases of 75.4% and 75.7%, respectively. A key factor in this surge was the growing demand for High Bandwidth Memory (HBM), which has contributed significantly to DRAM sales. In fact, HBM now accounts for 13.6% of total DRAM revenue, a figure expected to rise to 19.2% by 2025.
As the semiconductor industry continues its upward trajectory, key players like Samsung and Nvidia are poised to benefit from the increasing demand for memory solutions, particularly in the growing fields of AI and data processing technologies.
