The silicon wafer market is set for a rebound in 2025, according to latest research from electronic materials advisory firm Techcet.

Shipments are forecast to grow 5.4% to 13,076 million square inches with revenues increasing 6.7% to $13.6bn.

The upturn will be largely driven by a 7% increase in 300mm wafer shipments, supporting demand for AI, HPC, advanced logic and certain high-performance memory applications, according to Techcet.

The market is projected to sustain steady expansion with CAGR growth of 6% for shipments and 7.2% revenues until 2029.

Market momentum is being fuelled by strong infrastructure buildouts for AI and data centres as well as a shift towards higher value wafer segments. SOI wafers are expected to lead revenue growth with a 7.9% CAGR.

Source: Techcet

While industrial and automotive sectors are contributing more modestly, the transition to 300mm platforms is reinforcing long-term growth trajectories for semiconductor applications.

China’s government-backed push for self-sufficiency is driving its share of global wafer production capacity higher.

However international trade frictions and US tariffs threaten to raise costs and compress margins across the wafer supply chain.

President Trump announced his intention to introduce 100% tariffs on all imported chips and semiconductors although he said there will be no charges on companies setting up domestic production.

Competition is also ramping up globally with India recently approving four more semiconductor projects.