Powered by AI demand and booming memory sales, the semiconductor industry surpassed records with $216.3 billion Q3 revenue, races toward $800 billion in 2025, as growth broadens.

Global semiconductor revenue hit a milestone in the third quarter of 2025, rising to $216.3 billion, according to new research from Omdia. The figure represents 14.5% quarter-on-quarter (QoQ) growth, marking the first time the industry has crossed $200 billion in a single quarter.

Furthermore, this follows strong momentum in Q2 2025, which saw 8% sequential growth, putting the sector on track to exceed $800 billion in revenue for the full year.

As per data, the performance far exceeded seasonal expectations. Historically, third-quarter growth averages just over 7%, and market guidance ahead of Q3 2025 suggested around 5% growth.

Instead, nearly every major semiconductor category outperformed forecasts. AI chips and memory products continued to lead expansion, but unlike recent quarters, growth extended more broadly across the market.

Omdia notes that although 2024 was also a record year, with revenue surpassing $650 billion and more than 20% annual growth, performance was uneven. Excluding NVIDIA and memory ICs, the rest of the industry grew only around 1%, constrained by inventory corrections and subdued demand.

In 2025, the recovery has become far more balanced. While AI accelerators and memory remain dominant, other segments have strengthened meaningfully. Overall, Q3 revenue rose over 14%, while growth excluding NVIDIA and memory reached over 9%, signalling wider market participation.

For the full year, semiconductor revenue is expected to grow nearly 20%, with even non-AI, non-memory segments projected to expand about 9%, marking a shift to industry-wide growth.

Market leadership reflects this trend. The top four companies in Q3 were NVIDIA, Samsung, SK Hynix and Micron. Together, they generated over 40% of global semiconductor revenue.

“Demand for conventional DRAM is surging alongside HBM as AI inference workloads scale, driving an exceptional short-term price rally,” said Lino Jeng, Senior Principal Analyst at Omdia. “We expect Q4 to set a new revenue record, with this momentum likely continuing into next year.”