AI lifts silicon wafer shipments as revenue softens

Worldwide silicon wafer shipments rose in 2025, while revenue from wafer sales fell slightly, according to new figures from SEMI's Silicon Manufacturers Group.

Shipments increased 5.8% year on year to 12,973 million square inches (MSI). Wafer revenue slipped 1.2% over the same period to USD $11.4 billion.

The figures suggest uneven conditions across the semiconductor supply chain. Demand strengthened in areas linked to artificial intelligence workloads, while more established segments recovered more slowly. Wafer pricing and demand remain under pressure in several mature applications.

SEMI attributed the rise in shipments to advanced logic and high-bandwidth memory, along with growing demand for advanced epitaxial wafers used in logic. Polished wafers used in high-bandwidth memory also supported volume growth.

AI demand

Leading-edge manufacturing remains a bright spot for wafer volumes. Demand for 300mm wafers stayed strong in advanced applications tied to AI-driven logic and high-bandwidth memory.

These parts of the market are also adopting newer manufacturing processes, including sub-3nm nodes, which are raising requirements for wafer quality and consistency.

Ginji Yada, Chairman of SEMI SMG and Executive Office Deputy General Manager, Sales and Marketing Division at SUMCO Corporation, said the market is split between advanced and mature technology nodes.

"The 2025-2026 wafer market is shaped by diverging trends across technology nodes," Yada said.

He added that demand remained strong for 300mm wafers used in advanced applications, supported by continued investment in data centres and generative AI.

Revenue pressure

Despite higher volumes, revenue weakened as conditions stayed soft in traditional semiconductor applications, where demand and pricing have yet to improve.

The combination of higher shipments and lower revenue points to changes in mix, pricing, or both. It also shows that higher unit volumes do not always translate into higher sales value, especially when parts of the market remain oversupplied or are still working through price resets.

SEMI did not break out revenue by wafer type or diameter. Its commentary instead emphasised the contrast between advanced-node demand and a slower improvement elsewhere.

Mature segments

Inventory trends in mature-node applications have started to improve. SEMI highlighted automotive, industrial, and consumer electronics as end markets moving toward more normalised wafer and chip inventory levels after a prolonged adjustment period.

Yada said legacy segments showed gradual signs of stabilisation, though the recovery remained moderate and demand was sensitive to macroeconomic factors and end-market dynamics.

"In contrast, the legacy semiconductor segment shows gradual signs of stabilization. Wafer and chip inventory levels in mature-node applications-such as automotive, industrial, and consumer electronics-have begun to normalize after extended inventory adjustments. While supply-demand conditions are improving sequentially, the pace of recovery remains moderate, with demand recovery still sensitive to macroeconomic factors and end-market dynamics. As a result, the overall market outlook reflects a two-track trajectory: sustained demand and technical advancement in advanced nodes, alongside a cautious and incremental rebound for demand in mature technology segments," said Yada.

Industry basics

Silicon wafers sit at the start of much of the semiconductor supply chain. Chipmakers fabricate most semiconductors on thin silicon disks, typically up to 300mm in diameter for high-volume manufacturing.

SEMI's Silicon Manufacturers Group is a sub-committee of the SEMI Electronic Materials Group. It is open to SEMI members that manufacture polycrystalline silicon, monocrystalline silicon, or silicon wafers, including as-cut, polished, and epitaxial products.

The group produces industry statistics and coordinates joint work on issues affecting the silicon sector. SEMI's latest year-end figures show wafer volumes returning to growth, while revenue remains tied to a slower recovery in mature semiconductor demand.