Global Chip Market Poised to Exceed $1 Trillion Amid AI Boom

By AIbase Daily | August 27, 2025

The global semiconductor market is on track to surpass $1 trillion in revenue in the coming years, driven by the rapid expansion of artificial intelligence (AI) technologies, according to a new report by Counterpoint Research. This milestone represents nearly double the current market size, which is expected to reach $656 billion by 2024.

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The Rise of AI Infrastructure

The report highlights that the industry is currently in the second phase of AI infrastructure development, marked by explosive growth in applications like conversational AI, semantic search, and multimedia content generation. These innovations are fueling demand for computing power, memory, and network resources. Meanwhile, early-stage text-based AI applications are evolving into multimodal generative AI, capable of processing images, audio, and video.

Niel Shah, Vice President of Research at Counterpoint Research, emphasized that physical AI will define the next wave of infrastructure development. "With advancements in industrial robots, humanoid robots, and smart vehicles, semiconductor chips will become indispensable," Shah noted. These chips will be critical for GPUs, memory modules, smartphones, and other AI-driven hardware.

Key Growth Drivers

By 2030, servers are expected to contribute significantly to the trillion-dollar market, with revenue projected to grow from $153 billion in 2024 to $464 billion. Smartphones, currently valued at $172 billion, are anticipated to reach $259 billion as AI integration becomes a standard feature.

Tech giants are racing to capitalize on this trend. For instance:

• Amazon has formed a dedicated team for physical AI and debuted its first tactile robot.
• NVIDIA unveiled its Blackwell Ultra GPU, tailored for large-scale AI inference and agent AI workloads.
• Companies like Google, Samsung, and Apple are aggressively expanding their generative AI offerings for laptops and mobile devices.

Future Outlook

The report predicts that one-quarter of laptop shipments will soon highlight generative AI as a key selling point. As revenue streams shift toward AI-driven applications and services, profitability is expected to soar.

Key Points:

• 🌍 The global semiconductor market is projected to exceed $1 trillion, nearly doubling its current size.
• 🤖 Physical AI and agent AI are accelerating demand for advanced chips.
• 📈 Servers and smartphones will dominate revenue growth by 2030.