RE383 Monthly Market Insights - August 2025 1 - Flipbook - Page 3
Electronics Sector Strengthens as Server and EV Chip Demand Drive Upgraded 2025 Forecasts
The broader electronics sector is also benefiting. The World Semiconductor Trade Statistics (WSTS), updated in
August, revised its 2025 global semiconductor forecast upward, citing stronger electronics content in servers,
smartphones, and networking equipment. According to SIA, this reflects not only higher unit demand but also
more silicon per device.
For automotive and electric vehicles, August highlighted a mixed picture. While inventory corrections
continued to weigh on some automotive segments, demand for power electronics and ADAS processors
accelerated. Market researchers such as Yole Group forecast multi-year double-digit growth for EV
semiconductors, and August company results confirmed rising silicon content per vehicle.
CHIPS Act Negotiations and China Risks Push Chipmakers to Diversify
From a policy and investment standpoint, August was equally active. According to the U.S. Department of
Commerce announcements covered by Reuters, ongoing CHIPS Act negotiations with leading foundries and
Intel marked a pivotal moment in domestic capacity expansion. Export controls simultaneously pressured
South Korean firms like SK Hynix and Samsung, who were asked to reassess operations in China, further
accelerating “friend-shoring” and diversification of manufacturing bases.
Dual Forces Define Semiconductor Outlook: Tech Acceleration vs. Trade Risk
Looking forward from August, the semiconductor industry is positioned for a strong second half of 2025.
According to SIA and WSTS, global sales are on track to approach the US$700 billion mark for the full year,
with AI accelerators, memory, and advanced packaging capturing the bulk of incremental demand.
Automotive and EV semiconductors remain a steady growth pillar, while policy developments, particularly
U.S.–China trade restrictions, are expected to inject both risk and opportunity into global supply chains. In
short, August 2025 confirmed the industry’s dual trajectory: technological acceleration powered by AI,
and geopolitical recalibration that continues to shape investment flows and market access.
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