BANGALORE, India , Nov. 19, 2025 /PRNewswire/ — Global Semiconductor in Server Market Size
The global market for semiconductors in servers was valued at USD 110,672 Million in 2024 and is projected to reach USD 246,491 Million by 2031, growing at a 9.3% CAGR over the period.
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Major Trends
The server semiconductor market is booming, driven by the rapid expansion of cloud computing, big data, and AI workloads. Major trends include:
- Government incentives: Massive national programs are injecting hundreds of billions of dollars into building domestic chip fabs and strengthening supply chains. These initiatives significantly accelerate capacity expansion and technology advancement.
- AI and data-center growth: Surging AI/ML and cloud workloads are reshaping global data-center architecture and driving demand for high-performance server chips. Analysts expect global server semiconductor revenues to surpass USD 300 billion by 2030 as AI-ready data centers continue their rapid expansion.
- Hyperscale custom chips: Cloud giants such as AWS, Google, and Microsoft are expanding hyperscale data centers and developing in-house accelerators (e.g., TPUs, Trainium). This trend fuels demand for specialized GPUs, NPUs, and ASICs optimized for AI and parallel workloads.
- Advanced memory technologies: Adoption of next-generation memory standards such as DDR5, HBM, and CXL is accelerating to support the massive data throughput required by AI servers. Memory technologies associated with high-speed DRAM and HBM are becoming critical components of server architectures.
Trends Influencing the Growth of the Global Semiconductor in Server Market
Rapid cloud adoption, generative AI, and the explosion of high-performance computing workloads are reshaping global data-center design. GPUs and AI accelerators are the most important components powering this surge, with revenues expected to rise dramatically as large-scale AI systems proliferate. Custom AI ASICs designed by cloud hyperscalers are also becoming a major growth driver.
Government action is accelerating these technology trends. National semiconductor policies, incentives, and subsidy programs have mobilized large-scale investment in new fabs, R&D facilities, and advanced manufacturing capacity. These initiatives both secure supply chains and foster innovation in leading-edge nodes and packaging.
Cloud hyperscalers continue to dominate semiconductor consumption. Industry analysis indicates that most new data-center power demand by 2030 will come from AI-focused hyperscale facilities. These companies are also shifting toward custom silicon to improve efficiency and performance-per-watt, which in turn places heavy demands on semiconductor manufacturing capacity and advanced packaging technologies. Enterprise and HPC data centers also contribute significantly but at a steadier pace with more focused use cases.
Memory and interconnect technologies represent another key pillar of growth. Data-center operators are rapidly transitioning to DDR5 and high-bandwidth memory to overcome bottlenecks in AI training and inference workloads. Demand is so high that advanced HBM variants have experienced periods of global shortage. Modern AI servers often allocate a very large share of hardware budgets to memory systems, while emerging interconnect standards like CXL are enabling new capabilities such as memory pooling and dynamic allocation.
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Segment by Chip Type
Integrated circuit chips—including CPUs, GPUs, AI accelerators, and memory ICs—represent the overwhelming majority of server semiconductor revenue. They account for more than four-fifths of the total market, driven by the rising need for powerful compute engines and high-bandwidth memory systems. GPUs and AI accelerators are growing fastest, with some vendors holding dominant shares of the server GPU market.
Memory technologies such as HBM, GDDR, and DDR5 are also significant contributors. While historically memory was viewed as a commodity, advanced HBM variants used in AI servers command much higher margins due to their complexity and performance requirements.
Power and analog components, sensor chips, and optoelectronic devices serve important roles in server systems but remain much smaller in total revenue compared to compute and memory ICs.
Segment by Application (Data-Center Type)
Hyperscale data centers are the largest and fastest-growing driver of semiconductor demand. These massive facilities, typically operated by major cloud providers and internet companies, are expected to more than triple in market value by 2030. Their rapid expansion directly drives demand for advanced CPUs, GPUs, AI accelerators, and high-bandwidth memory.
Enterprise data centers continue to grow moderately as organizations modernize infrastructure, adopt virtualization, and deploy AI workloads.
High-Performance Computing (HPC) centers use some of the most advanced chips in the world, including exascale-class CPUs and GPUs. Though smaller in volume, they remain strategically important for scientific, governmental, and defense applications.
Semiconductor in Server Market Share Overview
- Chip type: Logic and compute chips—including CPUs, GPUs, and AI accelerators—lead the market. Memory technologies such as HBM and DDR5 are the second-largest contributor, followed by optoelectronics, sensors, and power components.
- Data center type: Hyperscale facilities dominate growth due to massive investment in cloud, AI, and big-data workloads. Enterprise and HPC centers grow steadily but represent a smaller share of incremental semiconductor demand.
North America leads the global server semiconductor market due to its concentration of hyperscale cloud companies, semiconductor R&D leadership, and strong national investment programs. Asia-Pacific is the fastest-growing region as China, Taiwan, South Korea, and India accelerate data-center construction and semiconductor manufacturing capacity. Europe is expanding more gradually but is supported by major policy initiatives aimed at localizing chip production and building digital infrastructure.
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Key Companies:
- NVidia
- AMD
- Intel
- STMicroelectronics
- NXP
- Infineon
- SAMSUNG
- SK Hynix
- Micron Technology
- Texas Instruments (Ti)
- Analog Devices, Inc. (ADI)
- Renesas Electronics
- Microchip Technology
- Onsemi
- MediaTek
- Marvell Technology Group
- Novatek Microelectronics Corp.
- Tsinghua Unigroup
- Realtek Semiconductor Corporation
- OmniVision Technology, Inc
- Monolithic Power Systems, Inc. (MPS)
- Cirrus Logic, Inc.
- Socionext
- LX Semicon
- Hisilicon Technologies
- Synaptics
- Allegro MicroSystems
- Himax Technologies
- Semtech
- Global Unichip Corporation (GUC)
- Hygon Information Technology
- Gigadevice
- Silicon Motion
- Ingenic Semiconductor
- Raydium
- Goodix
- Sitronix
- ROHM CO LTD
- Nexperia
- Hangzhou Silan microelectronics
- CR Micro
- Fuji Electric
- Yangzhou Yangjie Electronic Technology
- Littelfuse Inc
- Alpha and Omega Semiconductor
- Sanan Optoelectronics
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