Global semiconductor revenues soared to $655.9 billion in 2024, reflecting a substantial 21% jump from the $542.1 billion recorded in 2023, as revealed in the latest findings by market research firm Gartner.
For the first time, Nvidia claimed the top spot in global semiconductor revenue rankings, surpassing long-time leaders Samsung Electronics and Intel.
The change in position of the top 10 semiconductor vendor revenue ranking is attributed to huge demand for buildout of AI infrastructure and a 73.4 per cent rise in memory revenue," Gaurav Gupta, VP Analyst at Gartner, said.
Nvidia's ascension to the No. 1 ranking was spurred by a major surge in demand for its stand-alone graphics processing units (GPUs), which became the industry's preferred choice for AI-based workloads within data centers, Gupta said.
Samsung Electronics stayed at No. 2 due to a comeback in DRAM and flash memory prices, fueled by supply-demand imbalances.
Meanwhile, Intel registered a modest 0.8% revenue growth in 2024. Yet, the chipmaker struggled with growing competition across its key divisions and could not make the most of the exploding demand for AI-fueled processing, Gupta said.
Locally, approximately 20% of the world's semiconductor design talent is housed in India. India's present semiconductor demand, estimated at between $45 billion and $50 billion, is expected to double to $100–110 billion by 2030.
Aided by the production-linked incentive (PLI) scheme of the Indian government, the country's semiconductor consumption is expected to be $52 billion in the 2024-25 period and is likely to expand at a compound annual growth rate (CAGR) of 13% until the end of the decade.
Key markets like automotive and industrial electronics are major opportunities for value creation, as per the Indian Electronics and Semiconductor Association (IESA). Combined, mobile devices, industrial applications, and IT applications — which contribute almost 70% of revenue — remain the powerhouse drivers of growth in the industry.
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