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The semiconductor market is projected to grow 15.4% in 2025, driven by a 17.9% increase in integrated circuit (IC) growth. Key segments include a 29% rise in logic chips and a 71.8% increase in memory chip revenue in 2024. Despite macroeconomic and geopolitical uncertainties, particularly involving China, the industry shows strength, with significant contributions from emerging data center infrastructure and AI applications. The analog/mixed signal segment is highlighted for potential investment opportunities, particularly in companies like Analog Devices (ADI) and Magnachip Semiconductor (MX).
In August, U.S. manufacturing saw a notable recovery, with the PMI rising from 49.8 in July to 53. The annual growth in semiconductor demand is also reflected in various market predictions, with automotive chip demand expected to grow by 12% in 2025 and new product revenues anticipated to begin increasing by late 2025.
Moreover, global smartphone shipments are expected to rise by 1% in 2025, while on-device AI will make up 31% of all PC shipments this year. The automotive semiconductor sector continues to face pressures from tariff-related uncertainties as electrification trends push for increased chip usage in vehicles.
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