The worldwide semiconductor trade continues its fast evolution, marked by surging gross sales, shifting regional market shares, and the transformative impression of synthetic intelligence (AI) investments. Within the twelve months ending June 2025, international semiconductor gross sales reached a file $686 billion—up 19.8% year-over-year—underscoring the sector’s long-term growth, with a compound annual progress price (CAGR) of 8.0% since 1990.
Shifting Regional Market Shares: U.S. Rebounds, Asia Surges
Within the early Nineteen Eighties, the Americas—pushed primarily by america—dominated the worldwide semiconductor market, holding practically 60% of whole gross sales. Nevertheless, this share steadily declined to about 20% by the 2010s, as Asia’s affect grew quickly. Asia overtook the Americas in 1985, and China turned the world’s largest single-country market within the 2010s.
Europe’s share fell from over 30% within the early Nineteen Eighties to eight.1% in 2024, whereas Japan—as soon as commanding practically 40% within the mid-Nineteen Eighties—declined to simply 7.4% by 2024.
Regardless of long-term decline, the U.S. staged a current comeback. The Americas’ share of world semiconductor gross sales rose from 22.0% in 2018 to 25.5% in 2023, then surged to 30.9% in 2024 amid a wave of AI-driven funding—surpassing China’s 28.9% share for the primary time in over a decade.
Semiconductor Gross sales by Area in 2024:
- Americas (U.S.-led): $195 billion
- China: $182 billion
- Remainder of Asia: $155 billion
- Japan: $47 billion
- Europe: $56 billion
U.S. Gross sales Gradual After 2024 Peak
Whereas 2024 marked a excessive level for U.S.-led semiconductor gross sales, the development softened in 2025. Gross sales within the Americas dropped from a file $60.7 billion in This fall 2024 to $55.3 billion in Q1 2025 and $55.0 billion in Q2. However, Q2 2025 gross sales had been 24.1% increased than a 12 months earlier, outpacing international progress (19.6%) and Asia (19.3%).
On a quarter-over-quarter foundation, nonetheless, U.S. gross sales slipped by 0.6%, whereas international gross sales rose 7.8% and Asia surged 13.0%—signaling a renewed momentum shift towards Asia.
U.S. Market Share Slips Once more in 2025
From Q2 2021 to This fall 2024, the Americas’ share of the worldwide semiconductor market rose sharply from 20.9% to a peak of 35.2%, propelled by the AI growth. However in 2025, this upward development reversed. Market share fell to 33.2% in Q1 and 30.6% in Q2, pushed by weaker U.S. gross sales and renewed power in Asia.
This short-term decline means that whereas the U.S. has regained some floor, the aggressive pressures from Asia stay robust—particularly as Asian producers scale up capability and entice international demand.
Surging U.S. Dependence on Taiwanese Chips
Taiwan’s function within the U.S. provide chain has deepened dramatically. Taiwanese semiconductor exports to the U.S.—together with built-in circuits and information processing items—rose from simply 2% of whole Americas’ gross sales in 2018 to a median of 6% between 2019 and 2021. By the twelve months ending June 2025, that determine soared to 35%, reaching a file month-to-month excessive of 56% in June 2025 alone.
This surge displays the U.S.’s rising reliance on Taiwan for superior chips amid booming AI-related demand, elevating each strategic worth and potential geopolitical threat. 
Asia Hits Document as China Slows and “Remainder of Asia” Surges
Asia’s semiconductor gross sales reached a historic excessive of $112 billion in Q2 2025. Whereas year-over-year progress stood at 19.3%, barely beneath the Americas, the area led international progress in Q2 on a sequential foundation with a 13.0% improve.
Efficiency inside Asia diverse:
- China’s gross sales rose 10.0% quarter-over-quarter.
- Japan noticed a 2.9% decline.
- Remainder of Asia (excluding China and Japan) posted a exceptional 29.4% improve—highlighting accelerating diversification and manufacturing growth throughout the area.
Sources: Semiconductor Business Affiliation (U.S.) and Customs Administration of Taiwan
