Semiconductor sales up strongly year on year *

Global semiconductor sales surge 18.8 percent year-on-year in Q1 2025, sSetting new march record.

The global semiconductor market continues to defy economic uncertainties, posting a robust 18.8% year-on-year growth in the first quarter of 2025, according to new data released by the Semiconductor Industry Association (SIA). Worldwide chip sales totaled $167.7 billion for the quarter, marking a significant increase compared to Q1 2024, although representing a slight 2.8% decline from Q4 2024, as seasonal trends typically ease demand early in the year.

Record-Breaking March for Global Chip Sales

March 2025 proved to be a particularly strong month, with global semiconductor sales hitting $55.9 billion — a 1.8% increase over February 2025 and the highest-ever total for the month of March. The figures, compiled by the World Semiconductor Trade Statistics (WSTS) organization, reflect a three-month moving average and signal sustained demand across key markets.

“Global semiconductor demand remains high, with first-quarter sales substantially outpacing the first quarter of last year,” said John Neuffer, SIA president and CEO. He noted that year-on-year sales have now grown by more than 17% for 11 consecutive months, underlining the sector’s resilience and strategic importance.

Americas Lead, Europe Lags

Regionally, the Americas led the pack with a staggering 45.3% year-on-year sales increase in March, driven by strong enterprise AI infrastructure demand, cloud data center expansions, and continued growth in automotive semiconductors. Other regions posted more moderate gains: Asia Pacific/All Other (+15.4%), China (+7.6%), and Japan (+5.8%).

Interestingly, Europe was the only region to register a year-on-year decline, down 2.0% in March. However, on a month-to-month basis, European sales rebounded, rising 5.7% compared to February 2025 — one of the strongest monthly upticks globally.Industry Insight: AI and Automotive Fueling the Boom

The sustained demand for semiconductors continues to be driven by sectors like generative AI, autonomous vehicles, and advanced cloud computing infrastructure. Major cloud providers and AI startups alike are accelerating orders for high-performance GPUs and AI accelerators, while the automotive sector’s shift toward electric and connected vehicles further amplifies chip demand. Another noteworthy market development is the surge in demand for memory chips, particularly HBM (High Bandwidth Memory) and DDR5 modules, driven by AI workloads and data-intensive applications — contributing to the Americas’ standout performance.

Did You Know?

Interestingly, despite ongoing geopolitical tensions and export restrictions, China’s chip market grew by 7.6% year-on-year in March, signaling that local fabs and design houses are steadily scaling domestic production and adapting supply chains. This growth comes amid China’s aggressive push to localize semiconductor manufacturing and reduce reliance on foreign technology providers.