According to the latest research from Omdia, the semiconductor market achieved record-high performance in Q3 2025, with industry revenue reaching $216.3 billion, a 14.5% quarter-over-quarter (QoQ) increase. Following a strong 8% QoQ growth in Q2 2025, global semiconductor revenue surpassed the $200 billion mark for the first time in a single quarter. At this growth rate, the industry's full-year revenue for 2025 is expected to exceed $800 billion.
Q3 2025 performance significantly exceeded seasonal expectations, driven by sustained strong demand for AI and memory products, both of which grew faster than the overall market. While AI has been a recent focal point, Omdia noted that more market segments contributed to growth in Q3 2025 compared to previous quarters. Historically, the semiconductor industry's average QoQ growth in Q3 is around 7%, with public expectations for Q3 2025 initially projecting a 5% increase—typical of seasonal patterns. However, actual Q3 performance far surpassed forecasts, with over 14% QoQ growth, and nearly all semiconductor categories outperforming prior projections.
Growth momentum expanded beyond NVIDIA and memory sectors 2024 was a record-breaking year for the semiconductor market, with industry revenue exceeding $650 billion and annual growth surpassing 20%. However, Omdia pointed out that this growth was highly uneven. Excluding revenue from NVIDIA (NVDA.US) and memory chips, other market segments saw only a 1% increase in 2024 due to inventory adjustments and weak demand. In contrast, 2025 has shown a healthier and more balanced recovery. While AI and memory remain key growth drivers, other segments are now experiencing robust expansion.
In Q3 2025, overall market revenue grew over 14% QoQ, and even excluding NVIDIA and memory chips, growth still exceeded 9%. Omdia forecasts that full-year semiconductor revenue in 2025 will surpass $800 billion, marking nearly 20% growth compared to 2024. Even without NVIDIA and memory chips, the market is expected to grow around 9% annually, confirming a shift from niche-driven expansion to broad-based industry growth.
Leading firms solidify dominance in AI and memory Ranked by Q3 2025 revenue, the top four semiconductor companies are NVIDIA and the three major memory chip manufacturers—Samsung, SK Hynix, and Micron Technology (MU.US)—highlighting the continued dominance of AI accelerators and high-end memory products.
Lino Jeng, Senior Principal Analyst at Omdia, stated, "As AI inference workloads expand, demand for traditional DRAM and high-bandwidth memory (HBM) has surged simultaneously, driving significant short-term price increases. Q4 revenue is expected to set another record, with this strong momentum likely extending into next year." These four companies collectively account for over 40% of global semiconductor industry revenue.