Market Insights for April 1 - Flipbook - Page 3
AI and HPC Demand
The surge in AI applications, particularly generative AI, has significantly increased the demand for advanced
semiconductors, including high-bandwidth memory (HBM) and AI accelerators. HBM revenue alone is
expected to rise by up to 70% in 2025, reaching $21 billion.
Automotive Sector
The automotive semiconductor market is projected to exceed $100 billion by 2029, driven by the
electrification of vehicles and the integration of advanced driver-assistance systems (ADAS).
Emerging Trends
Advanced Node Expansion
Leading foundries like TSMC and Samsung are accelerating the development and production of advanced
nodes (2nm and 3nm technologies) to meet the growing demand for AI and HPC applications.
Sustainability Initiatives
The industry is increasingly focusing on sustainable manufacturing practices, including the use of renewable
energy sources, eco-friendly packaging materials, and water recycling, to reduce environmental impact.
Geopolitical Factors
Trade tensions, particularly between the U.S. and China, are influencing supply chains and investment
strategies. For instance, Intel is experiencing increased demand for older-generation chips due to customers
stockpiling in anticipation of potential tariff increases.
Semiconductor Supply Chain April 2025 Overview
As of April 2025, the global semiconductor industry is undergoing significant transformations influenced by
geopolitical shifts, regional investments, and evolving market dynamics. Here’s an overview of the current
landscape:
Geopolitical Shifts & Production Realignments
U.S.-China Trade Tensions: The semiconductor sector faces heightened uncertainty due to escalating
U.S.-China trade tensions. The U.S. has imposed stringent export controls on advanced computing and
semiconductor technologies to China, aiming to limit China’s access to critical technologies. In retaliation,
China has introduced tariffs of up to 85% on U.S.-made semiconductors, impacting companies like Intel, which
relies heavily on the Chinese market.
Supply Chain Diversification: In response to geopolitical risks, semiconductor companies are diversifying their
supply chains. This includes expanding manufacturing capacities in regions like Southeast Asia, Latin America,
and Eastern Europe, and investing in alternative sources for critical materials to reduce dependence on any
single country.
Market updates
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