AI-Integrated Smartphones to Drive Record Global Chip Demand in 2025

The global chip market is expected to grow 11,2% in 2025 to a record $697,18 billion, according to the latest forecast from the World Semiconductor Trade Statistics (WSTS). The main driver of this growth is strong demand for semiconductor materials for smartphones with integrated artificial intelligence (AI) and data centers.

AI-integrated smartphones drive global chip demand to record high in 2025. Illustration photo (Source: linkedin)

In a report released at the end of December, WSTS revised its forecast higher than the $12 billion it had given in June last year. This figure is higher than the estimated revenue of the global chip industry of $687,38 billion in 6.

By product, WSTS forecasts demand for logic circuits – the brains of electronic devices – to rise 16,8% to $243,78 billion. Demand for memory chips – which store data – is expected to rise 13,4% to $189,41 billion.

By region, the Americas are expected to record the largest growth of 15,4% to reach $215,31 billion, followed by Asia-Pacific. Binh Duong up 10,4% to $376,27 billion. Europe is forecast to grow the least, up 3,3% to $53,74 billion.

WSTS forecasts that the market for other types of semiconductors such as analog chips will also grow, provided the global economy grows at least moderately.

The increased use of AI technology by many countries and industries has strongly boosted chip demand as technology companies race to ensure adequate supply for data centers that support the development of generative AI and AI-powered devices.