RE383 Monthly Market Insights - August 2025 1 - Flipbook - Page 2
Market updates
Semiconductor Market Ends August on High Note with $346B H1 Sales
The global semiconductor industry closed August 2025 on a strong footing, propelled by AI-driven demand
and continued policy shifts shaping the supply chain. According to the Semiconductor Industry Association
(SIA), worldwide semiconductor sales for the first half of 2025 reached approximately US$346 billion,
representing an 18.9% year-on-year increase, with second-quarter revenue alone hitting US$179.7 billion,
up 7.8% from the prior quarter. These results, reported in August, underscore how momentum entering the
second half of the year remains robust.
AI Chips Fuel Record Growth, but Export Curbs and Packaging Race Reshape Semiconductor Outlook
In terms of market drivers, AI and data-centre chips continue to dominate. NVIDIA’s late August earnings
showed record revenue in its data-centre segment, driven by strong adoption of its new Blackwell
architecture, reinforcing that hyperscale AI remains the sector’s most powerful growth engine. According to
Reuters, export restrictions announced in August - targeting advanced GPU sales to China - could, however,
reshape NVIDIA’s and other suppliers’ revenue streams, highlighting the industry’s reliance on policy as much
as technology.
Memory and advanced packaging are also in the spotlight. Samsung emphasised its high-bandwidth memory
(HBM) roadmap at the Flash Memory Summit in early August, citing surging AI workloads as the catalyst.
Similarly, TSMC reiterated in its August board disclosures that advanced-node and 3D-packaging capacity
remain central to its long-term strategy.
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