Finance
Global chip sales expected to hit $1 trillion this year, industry group says
Published by Global Banking & Finance Review®
Posted on February 6, 2026
2 min readLast updated: February 6, 2026
Quick Summary
Global semiconductor sales are set to hit $1 trillion in 2025, driven by AI and data center investments, with major growth in advanced computing and memory chips.
Global Semiconductor Sales Projected to Reach $1 Trillion This Year
Overview of Semiconductor Market Growth
SAN FRANCISCO, Feb 6 (Reuters) - Global semiconductor sales are expected to hit $1 trillion this year, the Semiconductor Industry Association said on Friday.
Leading Segments in Chip Sales
The group, which represents most U.S. chip firms, said that chip sales hit $791.7 billion in 2025, an increase of 25.6% over the previous year. That booming growth is expected to continue into this year as major technology firms around the world spend hundreds of billions of dollars to build out data centers for artificial intelligence.
Impact of AI on Chip Industry
The growth leader and largest segment of chips was the kind of advanced computing chips made by Nvidia, Advanced Micro Devices and Intel. Sales of those products increased by 39.9%, totaling $301.9 billion in 2025.
Future Projections and Challenges
The second-largest category was memory chips, whose prices are soaring amid an AI-induced shortage. Memory chip sales rose 34.8% to $223.1 billion.
But the AI boom has extended to nearly every part of the chip industry, with John Neuffer, the president and chief executive of the Washington, D.C.-based industry group, saying that executives at a range of smaller firms expressed optimism for 2026 when he recently visited Silicon Valley.
"The refrain I heard was, 'No one knows what's going to happen with the AI build out a year from now, but my orders are completely full,'" Neuffer told Reuters. "At least for the next year, we're on a pretty, pretty strong glide path."
(Reporting by Stephen Nellis in San FranciscoEditing by Shri Navaratnam)
Key Takeaways
- •Global chip sales expected to reach $1 trillion in 2025.
- •AI demand is driving significant growth in the chip industry.
- •Nvidia, AMD, and Intel lead in advanced computing chip sales.
- •Memory chip sales are rising due to AI-induced shortages.
- •Industry optimism remains high for continued growth in 2026.
Frequently Asked Questions about Global chip sales expected to hit $1 trillion this year, industry group says
1What are memory chips?
Memory chips are electronic components used to store data temporarily or permanently in devices. They are crucial for the functioning of computers and other electronic devices.
2What is artificial intelligence (AI)?
Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think and learn. AI is increasingly used in various industries, including technology and finance.
3What is data center?
A data center is a facility used to house computer systems and associated components, such as telecommunications and storage systems. They are critical for managing and processing large amounts of data.
4What is chip sales growth?
Chip sales growth refers to the increase in revenue generated from the sale of semiconductor chips. This growth is often driven by advancements in technology and increased demand for electronic devices.
