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Overview of 2025 Silicon Wafer Shipment Trends

The silicon wafer industry has shown notable changes in 2025 as SEMI reports a 5.8% increase in global shipments, totaling approximately 12,973 million square inches (MSI). This growth is particularly significant when contrasted against a revenue decline of 1.2%, dropping to $11.4 billion for the same period. This report sheds light on the dynamic shifts and trends influencing the industry landscape, especially driven by advancements in artificial intelligence.

Key Insights

The SEMI Silicon Manufacturers Group (SMG) highlights that 2025 has been a pivotal year for wafer shipments. This increase in volume can be attributed to a robust demand for advanced epitaxial wafers in logic devices and polished wafers for high-bandwidth memory (HBM). These products are increasingly critical in applications that rely heavily on AI technology.

Ginji Yada, Chairman of SEMI SMG and Executive Office Deputy General Manager at SUMCO Corporation, stated, “Demand for 300mm wafers remains strong in advanced applications, particularly driven by AI and high-bandwidth memory applications.” This demand is further supported by ongoing technological transitions to sub-3nm processes, which raise the need for superior wafer quality and consistency.

Despite the surge in wafers used for advanced applications, the overall revenue situation indicates a more cautious outlook. The revenue decline is influenced by a diminishing momentum in traditional semiconductor markets, where demand and pricing have yet to recover fully. Yada elaborated, stating that while the market for advanced nodes thrives, legacy semiconductor segments are slowly stabilizing as inventory levels start to normalize following necessary adjustments.

Diverging Market Trends

The silicon wafer market is illustrating significant divergence between advanced technology and legacy segments. Currently, while advanced nodes fueled by AI applications show exceptional growth, older technology nodes are only beginning to exhibit positive dynamics. The latter's recovery remains closely tied to broader macroeconomic conditions and market dynamics, indicating a lagging yet potential rebound.

“While we observe a stable demand and technical progress in advanced technologies, the revival in mature segments will progress gradually,” Yada noted, stressing the nuanced behaviors of both segments.

Silicon wafers serve as the critical substrate material for semiconductors, forming the backbone of all electronic devices. With diameters of up to 300 mm, these disks are meticulously engineered and manufactured to ensure high performance and reliability in various applications.

Looking Ahead

The outlook for the silicon wafer market remains complex, with two distinct trajectories emerging. On one side, continued investments in data centers and generative AI signal sustained demand in high-tech areas, where performance is paramount. On the other side, legacy technologies are slowly regaining their footing but are likely to face ongoing challenges tied to external market conditions.

As the industry evolves, monitoring these trends will be crucial for stakeholders who aim to navigate the changing landscapes of both advanced and traditional semiconductor applications effectively. The insights provided by SEMI and the figures reported should serve as essential indicators for manufacturers and investors alike to adapt their strategies to foster growth in this pivotal sector.