Semiconductors Surge in Q1 2025: What’s Next?

📈 Industry Snapshot: Q1 Delivers on Optimism

According to the Semiconductor Industry Association, global chip sales reached $137.7 billion in Q1 2025. That’s an 18.8% increase over Q1 2024 and a 1.8% bump from February to March.

These figures reinforce the momentum described in the WSTS December 2024 forecast, which estimated 19% growth in 2024 and projected the market to hit $697 billion in 2025.

Much of that growth in 2024 was driven by two high-performing sectors: Memory (annual growth 81% 2024 and 13.4% 2025), and Logic (17% 2024 and 17% 2025).

Do these projections match your expectations? Share your insights in the 2Q 2025 Market Confidence Survey.

📝 DATAportl 1Q Survey Recap: Innovation Outpaces the Rest

In our previous Market Confidence Survey, respondents expressed strong confidence in emerging categories such as wearables, medical devices, and renewable technologies.

Meanwhile, traditional segments like home AV and PC computing were expected to grow more slowly. The automotive sector revealed mixed sentiment, with macroeconomic headwinds raising caution, even as electrification efforts continued to gain support across major markets.

There was particular interest in technologies like smart rings, XR headsets, and other sensor-driven devices, areas seen as high-potential growth drivers.

Industrial and medical applications were also viewed positively, with automation and remote health monitoring solutions cited as key demand areas. (see other DATAportl publications on many of these markets).

What do you think? Have your priorities shifted since Q1? Let us know in this quarter’s survey.

🧠 Strategic Takeaway

Recent sales data and projections signal a confident, accelerating semiconductor market. With the SIA reporting an 18.8% increase in Q1 sales and WSTS forecasting the market to reach $697 billion in 2025, optimism is high. Yet the outlook is not uniform. Some regions and product categories lag behind while emerging markets, from wearables to renewables, continue to capture interest.

This moment calls for insight from those on the ground. Your input in this quarter’s confidence survey helps frame the gap between industry data and sector-level reality.