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Yahoo
20 hours ago
- Automotive
- Yahoo
Global Semiconductor Market Size Worth USD 1.2 Trillion by 2034
According to Precedence Research, the global semiconductor market size was valued at USD 584.17 billion in 2024 and is projected to be worth around USD 1.2 trillion by 2034, reflecting a solid CAGR of 7.54% from 2025 to 2034. Ottawa, July 15, 2025 (GLOBE NEWSWIRE) -- Fueled by the surge in AI, electric vehicles (EVs), and global digital infrastructure, the . From powering smartphones and smart appliances to enabling self-driving vehicles and data-hungry AI applications, semiconductors are becoming the nerve center of the global digital This report is readily available for immediate delivery. We can review it with you in a meeting to ensure data reliability and quality for decision-making. Explore Sample Insights Before You Buy@ How Semiconductor Industry Leading Toward a Successful Market? The rising adoption of advanced electronic components, developments of the automotive industry, and expansion of data centers and cloud computing are shifting the semiconductor industry toward a successful market. Expanding areas of 5G networking and the adoption of AI-enabled devices have emerged in the market. Additionally, with emerging technologies like augmented reality (AR), virtual reality (VR), and internet of things (IoT), the market is expected to witness significant potential for future growth. According to the Semiconductor Industry Association (SIA) announcements in June 2025, the global semiconductor sales reached $57.0 billion during April 2025, and increased 2.5% compared to March 2025, with a total of $55.6 billion and 22.7% above that of April 2024. Where SIA has represented 99% of the U.S. semiconductor industry, has revenue, and nearly two-thirds of the non-U.S. chip industry. (Source: Semiconductor Market Highlights The semiconductor market reached USD 584.17 billion in 2024. It is projected to hit USD 1.2 trillion by 2034. The market is expected to grow at a solid CAGR of 7.54% from 2025 to 2034. Asia Pacific led the global semiconductor market in 2024 by holding 52.93% of market share, driven by strong electronics demand and manufacturing dominance. North America is projected to grow at a notable CAGR from 2025 to 2034, fueled by the CHIPS Act and AI investments. Memory devices held the largest market share in 2024, supported by rising demand for DRAM and NAND across cloud and mobile. MPU and MCU segments are expected to grow steadily through 2034 with increased adoption in IoT, automotive, and smart devices. Networking and communications segment was the top application segment in 2024 due to 5G rollout and data centre expansion. Automotive segment are forecast to grow rapidly, powered by EV adoption, ADAS technologies, and connected vehicles. Global semiconductor sales rose ~13% in 2024, surpassing the 2022 record and signaling strong market recovery. Advanced technologies like AI, edge computing, and quantum chips are driving innovation and long-term semiconductor demand. Regional fab expansions in Asia and the U.S. aim to boost chip self-reliance and reduce future supply chain disruptions. View Full Semiconductor Market Insight@ Major Trends in the Semiconductor Market: Which Emerging Aspects are Bringing Innovative Principles? Digitalization and Automation: The semiconductor industry revolves around industrial automation, robotics, control systems, and electric vehicles, contributing to sophisticated continuous innovations and developments. Growing Focus on Sustainability: The emphasis on environmental impact is witnessing significant growth in the semiconductor industry, driving focus on sustainability and energy-efficient manufacturing practices, bringing significant innovations in the market. 5G Connectivity: The demand for semiconductors has increased in the IT & telecommunication infrastructure and devices, driven by the rollout of 5G networking. Government Initiatives: Government initiatives in semiconductor manufacturing and localize production for reducing reliance on other countries and their imports have driven the market. Semiconductor Market Opportunity: Which Technological Advancements Hold the Potential of Market Growth? 6 major technology giants, including Intel, AMD, Amazon Web Services (AWS), Google, and Microsoft, have invested heavily in the semiconductor & AI chip industry, for the development of diverse chip architectures to comply with the rising demand for modern computing. In May 2025, NVIDIA sped up its trillion-dollar IT infrastructure transition to enterprise AI factors by launching the NVIDIA RTX PROTM Servers and novel NVIDIA enterprise AI factory validation designs. These designs are building data centers for delivering universal access to AI, engineering, design, and business applications. (Source: How is AI transforming the Semiconductor Industry? The demand for specialized chips is the major factor that has enhanced AI entry in the semiconductor industry. Artificial Intelligence (AI) algorithms are transforming aspects like chip design, manufacturing, and the application of semiconductors, contributing to enhancing the market growth. Additionally, the ongoing adoption of Generative AI, AI-powered features in devices, and high-performance computing are emerging significant innovations in the industry. AI transformation in semiconductor design, manufacturing, and material science is contributing to innovations and developments of novel semiconductor technologies. Semiconductor Market Challenges and Limitations: What are the Major Limitations and Challenges to the Global Semiconductor Market? Lack of Skilled Professionals: The semiconductor industry handles cutting-edge technologies and requires highly skilled professionals. The lack of skilled professionals can limit the understanding and resolution of technological complications. Supply Chain Distribution: The semiconductor industry depends on complete supply chain distribution, making the industry face challenges for distribution from various sources like geopolitical tension, pandemic, and natural disasters. High Capital Investment: Fab construction, R&D, and design complexity drive up costs, making it difficult for new entrants and limiting smaller players' participation. Future Outlook: With geopolitical tailwinds, AI acceleration, and localized chip production gaining momentum, the semiconductor industry is not just recovering – it's reimagining the future of global innovation. Technological shifts like chiplets, RISC-V, 3nm and 2nm nodes, and quantum chips are expected to redefine the competitive landscape over the next decade. Semiconductor Market Report Scope Report Coverage Statistics Market Size in 2024 USD 584.17 billion Market Size in 2025 USD 627.76 Billion Market Size by 2034 USD 1,207.51 Billion CAGR 2025 to 2034 7.54% Base Year 2024 Forecast Years 2025 to 2034 Key Drivers Rising demand for AI, IoT, 5G, EVs, and smart devices Largest Market Asia Pacific Opportunities Expansion in automotive electronics, AI chips, and semiconductor fabs Challenges Supply chain disruptions, geopolitical tensions, and R&D cost burdens Recent Trends Onshoring of chip production, CHIPS Act in the U.S., surge in AI workloads Asia Pacific Share (2025) USD 332.95 Billion Fastest Growing Market North America and Europe Segments Covered Component, Application, Region Top Segment by Component (2024) Memory Devices Emerging Component Segments Microprocessor Units (MPUs), Microcontroller Units (MCUs) Top Application (2024) Networking and Communications High-Growth Application Automotive Regions Covered North America, Europe, Asia-Pacific, Latin America and Middle East & Africa Key Players Broadcom, Inc., Intel Corporation, Qualcomm Technologies, Inc., Taiwan Semiconductors, NXP Semiconductors, Samsung Electronics, Texas Instruments, SK Hynix, Micron Technology, Maxim Integrated Products, Inc. Set up a meeting at your convenience to get more insights instantly! What Is the Size of the Asia Pacific Semiconductor Market in 2025? According to Precedence Research, the Asia Pacific semiconductor market is projected to reach USD 332.95 billion in 2025, growing from USD 309.22 billion in 2024. This growth reflects the region's strong position in global electronics manufacturing and its continued expansion across key sectors such as 5G, automotive, and consumer electronics. Note: This report is readily available for immediate delivery. We can review it with you in a meeting to ensure data reliability and quality for decision-making. Experience the Report Before Full Access@ Pacific Semiconductor Market Trends: Asia Pacific dominated the global semiconductor market, driven by robust manufacturing and a large population base. Asia Pacific has well-established manufacturing powerhouses of semiconductors in countries like China, India, Taiwan, and South Korea. The demand for semiconductors is wide in industries like electric vehicles, AI, consumer electronics, and data centers. Regional focus on advancing technology, promoting innovations in semiconductor raw materials and processing technologies is emerging in the market. Additionally, government initiatives are playing a vital role in empowering the local semiconductor manufacturing industry. How does Indian Government Support the Semiconductor Market? Government support, including promoting digitalization, investments in R&D, and support for local manufacturing giants, plays a crucial role in the expansion of the Indian semiconductor market. Government initiatives like the Indian Semiconductor Mission (ISM) and the Production Linked Incentive (PLI) are fostering research, development, manufacturing, and innovations in the semiconductor industry. Additionally, the 'Make in India' initiatives are expected to enhance the investment budget for the Indian semiconductor industry. In May 2025, the launch of India's first homegrown semiconductor chip by the end of 2025, announced by the Union Minister Ashwini Vaishnaw. The market projected of 60% global demand, six fabrication units are under construction to improve India's technology manufacturing capabilities. (Source: In May 2025, India approved the sixth semiconductor manufacturing facility, which is a joint venture between HCL and Foxconn, as part of the Indian Semiconductor Mission. (Source: You can place an order or ask any questions, please feel free to contact us at sales@ | +1 804 441 9344 North America Semiconductor Market Trends: North America is the fastest-growing region in the global market, driven by robust industrialization, increased demand for consumer electronics with 5G connectivity, and high adoption of cloud computing. North America has strong industrial and scientific powers contributing to expanding the semiconductor industry. Moreover, government investment in R&D and companies' partnerships are further supporting the market growth. The U.S. is a major player in the regional market, contributing to the market growth due to government support in the local semiconductor manufacturing industry. The robust military purchase and commercial application expansion are fostering the market growth. The presence of key market vendors is driving technological innovations in designs and manufacturing processes, being driven by collaborative approaches between key vendors, which are shaping the market growth. Europe Semiconductor Market Trends: Europe is expected to witness the fastest growth in the market over the forecast period, driven by regional strong investments in R&D and a strong focus on technological advancements. European governments have implemented several initiatives like the Chips Act, fueling the region's semiconductor industry. Additionally, the presence of major market vendors like NXP Semiconductors, ASML Holding N.V., STMicroelectronics N.V., and Infineon Technologies AG is contributing to the sophisticated innovations and developments in the market. Semiconductor Market Segments Analysis Semiconductor Market Revenue by Components (USD Billion) 2022-2024 Components 2022 2023 2024 North America 130.80 123.82 134.26 Europe 92.59 86.13 91.78 Asia Pacific 306.86 287.79 309.22 Middle East and Africa 24.58 22.27 23.08 Latin America 27.20 24.78 25.84 How Did Memory Devices Segment Dominated the Semiconductor Market in 2024? The memory devices segment dominated the market in 2024, due to increased demand for data storage and processing in various applications, including consumer electronics and data centers. Technological innovations in memory technologies like DDR5, emerging memory types like PCRAM and MRAM, and 3D NAND have improved capabilities, performance, and energy efficiency of semiconductor devices. Expanding data centers are driving the need for storage and computing, increasing the adoption of semiconductor memory devices. The MPU and MCU segments are the fastest-growing segment of the market, contributing to the market growth, driven by the rising adoption of MPU (microprocessor unit) and MCU (microcontroller unit) in various applications like data centers, personal computers, servers, automobiles, consumer electronics, and industrial automation. The expanding data centers, AI adoption, and cloud computing are driving the MPU utilization. Additionally, the growing use of IoT devices, industrial automation growth, and automotive electronics are fostering the MCU segment. Application Analysis What Made Networking & Communications Segment Lead the Semiconductor Market in 2024? In 2024, the networking & communications segment led the market, due to increased demand for more reliability, high-speed data transfer, and higher-capability communication technologies. The ongoing deployments of 5G and 6G connectivity are driving the need for sophisticated semiconductor devices and technologies. The rapid advancements in networking technologies like AI and machine learning (ML) are bringing significant innovations in semiconductors in applications like networking and communication. The automotive segment is expected to grow fastest over the forecast period, due to the increased adoption of electric vehicles, autonomous driving, and demand for connected care features. The increased adoption of hybrid vehicles and electric vehicles, driving the need for a substantial amount of power semiconductors. The use of semiconductor chips in automotives is expected to increase over the forecast period. The expanding automotive industry is expected to boost the trend in the semiconductor market. Related Topics You May Find Useful: The global compound semiconductor market size was worth around at USD 53.46 billion in 2024 and is expected to grow from USD 59.44 billion in 2025 to approximately USD 154.54 billion by 2034, expanding at a CAGR of 11.20% from 2025 to 2034. The global discrete semiconductor market size was USD 57.83 billion in 2023, accounted for USD 62.97 billion in 2024, and is expected to reach around USD 147.72 billion by 2034, expanding at a CAGR of 8.9% from 2024 to 2034. The global automotive semiconductor market size was exhibited at USD 46.79 billion in 2024 and is anticipated to reach around USD 102.15 billion by 2034, expanding at a CAGR of 8.12% from 2025 to 2034. The global semiconductor manufacturing equipment market size accounted for USD 92.45 billion in 2024, and is projected to hit USD 99.38 billion by 2025, and is expected to reach around USD 190.54 billion by 2034, expanding at a CAGR of 7.5% from 2025 to 2034. The global GaN semiconductor devices market size is estimated at USD 4.22 billion in 2024 and is anticipated to reach around USD 42.57 billion by 2034, expanding at a CAGR of 26% from 2024 to 2034. Semiconductor Market Top Companies Intel Corporation Qualcomm Technologies, Inc. Broadcom, Inc. Taiwan Semiconductors Samsung Electronics Texas Instruments SK Hynix Micron Technology NXP Semiconductors Maxim Integrated Products, Inc. What are the recent developments in the Global Semiconductor Market? In July 2025, Accenture acquired SYSTEMA, a provider of software solutions and consulting services for manufacturing automation. The company is well-known for working with semiconductor manufacturers and other high-technology companies. (Source: In June 2025, Sony Semiconductor Solutions Corporation announced the launch of its IMX479 stacked, direct time of flight (dToF0 SPAD depth sensor for an automated LiDAR system. The system is designed to provide high resolution and high-speed performance. (Source: Semiconductor Market Segments Covered in the Report By Component Logic Devices MPU Power Devices MCU Analog IC Memory Devices Sensors Discrete Power Devices Others By Application Data Processing Industrial Networking & Communications Consumer Electronics Automotive Government By Region North America Europe Asia Pacific Latin America Middle East & Africa Thanks for reading you can also get individual chapter-wise sections or region-wise report versions such as North America, Europe, or Asia Pacific. Immediate Delivery Available | Buy This Premium Research Report@ You can place an order or ask any questions, please feel free to contact at sales@ | +1 804 441 9344 Stay Ahead with Precedence Research Subscriptions Unlock exclusive access to powerful market intelligence, real-time data, and forward-looking insights, tailored to your business. From trend tracking to competitive analysis, our subscription plans keep you informed, agile, and ahead of the curve. Browse Our Subscription Plans@ About Us Precedence Research is a worldwide market research and consulting organization. We give an unmatched nature of offering to our customers present all around the globe across industry verticals. Precedence Research has expertise in giving deep-dive market insight along with market intelligence to our customers spread crosswise over various undertakings. We are obliged to serve our different client base present over the enterprises of medicinal services, healthcare, innovation, next-gen technologies, semi-conductors, chemicals, automotive, and aerospace & defense, among different ventures present globally. 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The Hindu
16-06-2025
- Business
- The Hindu
Why have special economic zones rules been relaxed?
The story so far: The Government of India has been taking various steps to boost the production of semiconductors and electronics in India, in a bid to reduce our dependence on imports. Some previous measures include the Semicon India programme launched in 2022 with an outlay of ₹76,000 crore. Now, the government has gone a step further and has relaxed key rules related to Special Economic Zones (SEZs) to further encourage the domestic manufacture of semiconductors and electronics. Why are semiconductors important? Semiconductors lie at the heart of an increasingly electronic society, with AI and machine learning only the latest in a long trend of increased digitisation and automation. Semiconductors are the tiny chips processing vast amounts of information that make all of these processes possible, in one's phone, computer, tablet, smart TV, smart speaker, car, and every other electronic gadget. According to the Semiconductor Industry Association, China accounted for about 35% of all semiconductors manufactured in the world in 2021. Following the COVID-19 pandemic, much of the world, including India, realised that the concentration of supply chains in one country posed huge risks for any country dependent on those supplies. Therefore, they started trying to boost the domestic manufacture of such key components. What are the latest steps by the Indian government? On June 9, the Ministry of Commerce and Industry announced that it had notified several modifications to the Special Economic Zones (SEZ) Rules, 2006, a week earlier, to enhance the domestic manufacture of semiconductors. One of these tweaks was to Rule 5, which dealt with the size of the SEZ. Earlier, an SEZ set up exclusively for the manufacture of semiconductors or electronic components needed a minimum contiguous land area of 50 hectares. This has now been significantly reduced to 10 hectares. This reduced size will allow companies to make smaller investments but still avail of SEZ benefits such as tax exemptions, duty-free imports, and infrastructure support. Another amendment to Rule 7 of the SEZ Rules now allows the Board of Approval for SEZs to relax the condition that had required SEZ land to be 'encumbrance-free'. Land is deemed to be encumbrance-free if it does not have any legal claims, liens, or charges against it, and when clear title of ownership and transfer can be established. With India's complicated and often-archaic land record mechanisms, and lengthy legal processes, such a requirement would have stymied a lot of SEZs. Relaxing this rule will allow SEZs to come up faster. A third amendment was to Rule 18, allowing SEZ units in semiconductor and electronics component manufacturing to supply domestically, after paying the applicable duties. Conventionally, SEZs are exclusively export-oriented. Allowing domestic sales not only shields the SEZs from the ongoing global trade uncertainty, but also ensures a steady supply to the domestic market itself. What has been the impact? Given the changes are so recent, one can't immediately establish long-term impacts. However, following the tweaks, two new SEZs have already been approved with a total investment of ₹13,100 crore. Micron Semiconductor Technology India will establish an SEZ facility in Sanand, Gujarat for the manufacture of semiconductors with an estimated investment of ₹13,000 crore, while Hubballi Durable Goods Cluster, a part of the Aequs Group, will establish an SEZ facility for the manufacture of electronic components in Dharwad, Karnataka, at a cost of ₹100 crore. Micron's plant is to be 37.64 hectares in area and the Aequs plant is expected to be 11.55 hectares.
The Sun
26-05-2025
- Business
- The Sun
Kobay Technology eyes growth in contract manufacturing, advanced technologies
GEORGETOWN: Main market-listed leading engineering solutions provider, Kobay Technology Bhd's net profit decreased 87.14% to RM705,000 for the third quarter (Q3 ended March 31, 2025 (FY25) from RM5.48 million posted in the same quarter last year due to intensified pricing competition and changes in the overall product mix. Revenue for the quarter stood at RM81.4 million compared to RM87.8 million posted in Q3 FY24 due to a shift in sales towards a lower-margin product mix and subdued market demand for higher-margin products during the quarter. For the nine-month (9M) period, Kobay recorded an 8.2% year-on-year (YoY) increase in revenue, reaching RM257.3 million compared to RM237.8 million in the 9M of FY24. The growth was primarily driven by commendable growth in the manufacturing segment, which saw a 10.9% YoY rise in revenue to RM164.2 million in 9M FY25, up from RM148.1 million in 9M FY24. Higher sales orders across the core mainly propelled this improvement in manufacturing business units, though this was partially offset by a softer demand for higher-margin products and the incubating project, which contributed substantially, resulting in a lower margin recorded. Profit before tax (PBT) for the manufacturing segment rose by 2.7% YoY to RM11.7 million, versus RM11.4 million in 9M FY24. Reflecting the top-line performance, the group's net profit for 9M FY25 saw a modest climb of 0.9% YoY to RM10.2 million vis-à-vis RM10.1 million in 9M FY24. Managing Director and CEO Datuk Seri Koay Hean Eng said the company's 9M FY25 results highlight the group's resilience amid a challenging and volatile operating environment, characterised by tariffs, export controls, and supply chain restrictions that continue to affect the global economy. He said this policy uncertainty complicates investment and manufacturing decisions, potentially impacting long-term capacity planning. On a brighter note, Koay said the global semiconductor industry continues to show vitality, with the Semiconductor Industry Association (SIA) reporting an 18.8% YoY increase in global semiconductor sales to US$167.7 billion in the first quarter of 2025. The World Semiconductor Trade Statistics (WSTS) also projects the industry to reach approximately US$697 billion this year, an 11.2% surge. 'Against this backdrop, the group is actively advancing its diversification efforts into the contract manufacturing (CM) services as part of our broader strategic approach to adapt to market conditions. 'These efforts, combined with investments in advanced manufacturing technologies, are expected to drive long-term growth and stabilise performance on a YoY basis. 'Alongside these efforts, we remain optimistic about the prospects of our property development division. This outlook is fuelled by ongoing infrastructure projects, government initiatives, and a revival in tourism activity, all expected to bolster property markets in key locations such as Langkawi and Penang. 'Moving forward, we intend to time upcoming product launches to align with evolving buyer trends while exercising prudent risk management and maintaining operational discipline. 'Our pharmaceutical and healthcare division expects steady demand in the future, supported by growing health awareness, preventive care trends, and demographic changes such as an ageing population. 'Nevertheless, inflation and rising living costs may weigh on consumer appetite soon. To navigate this, we are expanding our product range, exploring new market segments such as high-margin niche medical products, improving operational efficiency, and strengthening our digital marketing efforts to enhance brand presence. 'As we progress, we will prioritise agility and responsiveness as essential for navigating an increasingly complex and dynamic market landscape. By remaining adaptable and proactive, we aim to manage challenges effectively while building sustainable growth over time,' Koay said.
The Sun
26-05-2025
- Business
- The Sun
SunBiz 26-05- 2025 04:58 PM
GEORGETOWN: Main market-listed leading engineering solutions provider, Kobay Technology Bhd's net profit decreased 87.14% to RM705,000 for the third quarter (Q3 ended March 31, 2025 (FY25) from RM5.48 million posted in the same quarter last year due to intensified pricing competition and changes in the overall product mix. Revenue for the quarter stood at RM81.4 million compared to RM87.8 million posted in Q3 FY24 due to a shift in sales towards a lower-margin product mix and subdued market demand for higher-margin products during the quarter. For the nine-month (9M) period, Kobay recorded an 8.2% year-on-year (YoY) increase in revenue, reaching RM257.3 million compared to RM237.8 million in the 9M of FY24. The growth was primarily driven by commendable growth in the manufacturing segment, which saw a 10.9% YoY rise in revenue to RM164.2 million in 9M FY25, up from RM148.1 million in 9M FY24. Higher sales orders across the core mainly propelled this improvement in manufacturing business units, though this was partially offset by a softer demand for higher-margin products and the incubating project, which contributed substantially, resulting in a lower margin recorded. Profit before tax (PBT) for the manufacturing segment rose by 2.7% YoY to RM11.7 million, versus RM11.4 million in 9M FY24. Reflecting the top-line performance, the group's net profit for 9M FY25 saw a modest climb of 0.9% YoY to RM10.2 million vis-à-vis RM10.1 million in 9M FY24. Managing Director and CEO Datuk Seri Koay Hean Eng said the company's 9M FY25 results highlight the group's resilience amid a challenging and volatile operating environment, characterised by tariffs, export controls, and supply chain restrictions that continue to affect the global economy. He said this policy uncertainty complicates investment and manufacturing decisions, potentially impacting long-term capacity planning. On a brighter note, Koay said the global semiconductor industry continues to show vitality, with the Semiconductor Industry Association (SIA) reporting an 18.8% YoY increase in global semiconductor sales to US$167.7 billion in the first quarter of 2025. The World Semiconductor Trade Statistics (WSTS) also projects the industry to reach approximately US$697 billion this year, an 11.2% surge. 'Against this backdrop, the group is actively advancing its diversification efforts into the contract manufacturing (CM) services as part of our broader strategic approach to adapt to market conditions. 'These efforts, combined with investments in advanced manufacturing technologies, are expected to drive long-term growth and stabilise performance on a YoY basis. 'Alongside these efforts, we remain optimistic about the prospects of our property development division. This outlook is fuelled by ongoing infrastructure projects, government initiatives, and a revival in tourism activity, all expected to bolster property markets in key locations such as Langkawi and Penang. 'Moving forward, we intend to time upcoming product launches to align with evolving buyer trends while exercising prudent risk management and maintaining operational discipline. 'Our pharmaceutical and healthcare division expects steady demand in the future, supported by growing health awareness, preventive care trends, and demographic changes such as an ageing population. 'Nevertheless, inflation and rising living costs may weigh on consumer appetite soon. To navigate this, we are expanding our product range, exploring new market segments such as high-margin niche medical products, improving operational efficiency, and strengthening our digital marketing efforts to enhance brand presence. 'As we progress, we will prioritise agility and responsiveness as essential for navigating an increasingly complex and dynamic market landscape. By remaining adaptable and proactive, we aim to manage challenges effectively while building sustainable growth over time,' Koay said. With investments in advanced manufacturing technologies, Kobay Technology is expected to drive long-term growth and stabilise performance on a YoY basis.
Yahoo
20-05-2025
- Business
- Yahoo
March Semiconductor Uptick Masks Looming Tariff Risks
Global semiconductor sales surged to $55.9 billion in March, recording the first sequential increase after two months of declines. March sales climbed 1.8 % month-over-month and jumped 18.8 % year-over-year, driven by renewed investments in Europe, China and Asia Pacific, which saw gains between 2.4 % and 5.7 % compared to February. The Americas, despite accounting for a large share of the market, dipped 0.4 % to $18.57 billion as U.S. demand cooled. The U.S. Department of Commerce's probe into semiconductor imports, potentially paving the way for tariffs, looms over the sector. The Semiconductor Industry Association warned that untargeted tariffs risk reducing American competitiveness by raising the cost of developing technology and manufacturing chips here at home. For the first quarter, global chip sales totaled $167.7 billion, up 18.8 % from Q1 2024 but down 2.8 % versus Q4 2024. Year-to-date, the Americas lead with a 45.3 % year-on-year surge, followed by Asia Pacific at 15.4 % growth, while China posted a 7.6 % rise in February alone. Why It Matters: The rebound in March suggests regional diversification is supporting semiconductor demand even as U.S. markets cool, but looming tariffs could undercut this momentum. Investors will be watching Q2 sales and U.S. trade-policy developments for clues on whether this uptrend can persist. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
