Semiconductor revenues jumped 18% in 2024, Samsung regains number one spot

Thanks to the rapid growth of artificial intelligence and its insatiable need for graphics cards and neural processing units, the semiconductor industry recorded an 18.1% jump in revenue growth last year. Revenues totaled $626 billion last year and in 2025, that figure is expected to be even higher at $705 billion.

The growth saw semiconductor vendors changed their market share rankings, with 11 of the top 25 seeing double-digit growth, while just eight of the 25 recorded declines. Samsung leapfrogged Intel to become the number one vendor, while Nvidia jumped from fifth to third place. Micron Technology pulled off the biggest leap, going from 12th to sixth.

Big names like Intel, Qualcomm, Broadcom, AMD, and Apple, all fell lower in the ratings in 2024, compared to 2023. In terms of actual revenue growth, the leader was SK hynix, reporting 86% growth in revenue.

“Graphics processing units (GPUs) and AI processors used in data center applications (servers and accelerator cards) were the key drivers for the chip sector in 2024,” said George Brocklehurst, VP Analyst at Gartner. “The rising demand for AI and generative AI (GenAI) workloads led data centers to become the second-largest market for semiconductors in 2024, behind smartphones. Data center semiconductor revenue totaled $112 billion in 2024, up from $64.8 billion in 2023. Memory and AI semiconductors will drive near-term growth, with high-bandwidth memory (HBM) projected to account for an increasing share of DRAM revenue, reaching 19.2% in 2025. HBM revenue is estimated to increase 66.3% in 2025, reaching $19.8 billion.”

It'll be interesting to see what happens in this market going forward. The new reasoning models that are becoming more accessible, thanks to DeepSeek R1, could drive the need for more power. At the same time, the demand may not end up being so great if companies like DeepSeek have found ways to make their models much more efficient.

Image via Depositphotos.com

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