Global semiconductor market on track to hit $1T by 2026
The World Semiconductor Trade Statistics (WSTS) organization has raised its outlook for 2025 and reaffirmed a strong growth trajectory through 2026, pushing the global chip market closer to the USD 1 trillion mark. The European Semiconductor Industry Association (ESIA) released the updated figures, citing robust demand in AI, data-center expansion, and computing.
For eeNews Europe readers, the updated forecast highlights where design investment will concentrate — Logic, Memory, and data-infrastructure semiconductors — and signals how Europe’s more modest growth outlook could shape regional supply-chain strategies.
2025: Logic & Memory power a 22.5% surge
WSTS now expects the global semiconductor market to jump 22.5% in 2025 to USD 772.2 billion, driven largely by Logic and Memory devices tied to AI acceleration and hyperscale infrastructure. Logic is forecast to grow 37.1% — an 8-point upward revision—while Memory is set to expand 27.8%, 11 points higher than the earlier estimate.
Other categories are recovering from the 2024 downturn but at a slower pace: Sensors are projected to rise 10.4%, Microprocessors 7.9%, Analog 7.5%, and Optoelectronics 3.7%. However, Discretes remain the laggard with a slight decline attributed to ongoing weakness in automotive demand.
Regionally, growth remains uneven. Asia-Pacific and the Americas are expected to expand between 24.9% and 29.1% on the strength of Logic and Memory orders. Europe is projected to grow a modest 5.6%, while Japan is set to contract by 4.1%.
2026: Market momentum pushes toward USD 1 trillion
Looking ahead, WSTS forecasts a further 26%+ expansion in 2026, bringing global semiconductor revenue to USD 975.5 billion. Logic and Memory remain the primary engines, each expected to grow by more than 30% year-over-year.
All major regions are predicted to return to growth in 2026, with the Americas and Asia-Pacific again leading and Europe and Japan reaching low double-digit gains. For Europe’s electronics sector, the two-year outlook suggests sustained demand opportunities — even as regional growth trails global momentum.
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