Chip sales are set to soar in 2025 — so long as there isn’t a trade war | Deloitte

5 days ago 67

February 4, 2025 4:00 AM

Deloitte has predictions about chips in 2025.

Image Credit: Deloitte

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Semiconductor chip sales are set to soar in 2025, led by generative AI and data center build-outs, even as demand from PC and mobile markets may be weak, according to Deloitte’s 2025 chip outlook report.

The semiconductor industry had a robust 2024, with expected double digit (19%) growth, and sales of $627 billion for the year. But that’s even better than the earlier forecast of $611 billion. And 2025 could be even better, with predicted sales of $697 billion, reaching a new all-time high, and well on track to reach the widely accepted aspirational goal of $1 trillion in chip sales by 2030. To get there, the chip industry only has to grow at a compound annual growth rate of 7.5% from 2025 to 2030.

Of course, all of this assumes that the U.S. doesn’t get into a massive trade war as a result of Donald Trump’s plan to place tariffs on computer chips and other semiconductors. He reaffirmed last week that he not only planned to place tariffs on China of 10%, but that he would also put them on Taiwan, where big U.S. companies like Nvidia get their chips. The Consumer Technology Association estimates that tariffs could make game consoles 40% more expensive for U.S. consumers, with a 26% price increase for smartphones and 46% price increase for laptops.

I am guessing this probably came up as Jensen Huang, CEO of Nvidia, visited Trump on Friday just ahead of the tariff announcements on Sa...

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