Driven by growing demand for artificial intelligence (AI) and high-performance computing, the global silicon wafer market is expected to enter a recovery phase starting in 2025.

SEMI, an industry association representing the global electronics industry supply chain, announced that global silicon wafer shipments will reach 12.973 billion square inches in 2025, a 5.8% increase from the previous year.

While shipments increased, wafer sales during the same period decreased by 1.2% to $11.4 billion. This is attributed to the delayed price rebound compared to the pace of demand recovery. SEMI predicts 2025 will be the inflection point when wafer shipments resume growth.

A key factor driving shipment growth is the expansion of AI applications. Increased investment in AI accelerators and data centers has fueled robust demand for advanced epitaxial wafers for logic and polished wafers for high-bandwidth memory (HBM). In particular, demand for 300mm wafers is maintaining a strong trend along with the spread of advanced processes below 3nm.

“The wafer market in 2025-2026 is showing different trends depending on the technology node,” said Kinji Yada, chairman of SEMI SMG (Silicon Manufacturers Group) and deputy general manager of sales and marketing at SUMCO. “Advanced applications such as AI-based logic and HBM are driving market growth.”

“Advanced process transitions are further intensifying demands on wafer quality and materials technology, and investments in data centers and generative AI are supporting this,” he added.

Meanwhile, legacy semiconductor markets, including automotive, industrial, and consumer electronics, are gradually stabilizing. Wafer and chip inventory levels are normalizing after a prolonged period of inventory adjustment, but the recovery is slow. Sensitivity to macroeconomic conditions and end-demand remains high.

Accordingly, the global wafer market is exhibiting a "two-track" trend, with structural growth centered on advanced nodes and a gradual rebound in mature processes. Silicon wafers are a key foundational material for semiconductor manufacturing, and as competition in AI semiconductors and advanced processes intensifies, the importance of materials technology is expected to grow even more.