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.
Get Free Sample Report: https://reports.valuates.com/request/sample/QYRE-Auto-8A19701/Global_Semiconductors_in_Server_Market_Research_Report_2025?utm_source=prnewswire&utm_medium=referral&utm_campaign=prnewswire_referral
Major TrendsThe 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.
View Full Report: https://reports.valuates.com/market-reports/QYRE-Auto-8A19701/global-semiconductors-in-server?utm_source=prnewswire&utm_medium=referral&utm_campaign=prnewswire_referral
Trends Influencing the Growth of the Global Semiconductor in Server MarketRapid 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.
Claim Yours Now! https://reports.valuates.com/api/directpaytoken?rcode=QYRE-Auto-8A19701&lic=single-user
Segment by Chip TypeIntegrated 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.
Purchase Regional Report: https://reports.valuates.com/request/regional/QYRE-Auto-8A19701/Global_Semiconductors_in_Server_Market_Research_Report_2025?utm_source=prnewswire&utm_medium=referral&utm_campaign=prnewswire_referral
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
SUBSCRIPTION
We have introduced a tailor-made subscription for our customers. Please leave a note in the Comment Section to know about our subscription plans.
What are some related markets to the Semiconductor in server market?
- Power Semiconductor in Data Center Market was valued at USD 534 Million in the year 2024 and is projected to reach a revised size of USD 1240 Million by 2031, growing at a CAGR of 11.0% during the forecast period.
- In-line Depaneling Routers (In-line PCB Depaneling Routers) Market
- GaN and SiC Power Semiconductor market size was USD 5279 Million in 2024 and is forecast to a readjusted size of USD 21056 Million by 2031 with a CAGR of 21.0% during the forecast period 2025-2031.
- Silicon Carbide (SiC) Power Semiconductor Market was valued at USD 3944 Million in the year 2024 and is projected to reach a revised size of USD 13520 Million by 2031, growing at a CAGR of 19.5% during the forecast period.
- Silicon Carbide Semiconductor Device Market was valued at USD 3988 Million in the year 2024 and is projected to reach a revised size of USD 15430 Million by 2031, growing at a CAGR of 21.6% during the forecast period.
- Power Semiconductor Device and Module Market was valued at USD 40160 Million in the year 2024 and is projected to reach a revised size of USD 61740 Million by 2031, growing at a CAGR of 6.4% during the forecast period.
- BCD Process Platform Market
- AIoT Application Computing All-in-One Computer Market
- Single in-line Memory Module (SIMM) Market
- Third-Generation Semiconductor Market was valued at USD 4535 Million in the year 2024 and is projected to reach a revised size of USD 11620 Million by 2031, growing at a CAGR of 14.6% during the forecast period.
- Baseboard Management Controller (BMC) for Server Market was valued at USD 147 Million in the year 2024 and is projected to reach a revised size of USD 222 Million by 2031, growing at a CAGR of 6.3% during the forecast period.
DISCOVER OUR VISION: VISIT ABOUT US!
Valuates offers in-depth market insights into various industries. Our extensive report repository is constantly updated to meet your changing industry analysis needs.
Our team of market analysts can help you select the best report covering your industry. We understand your niche region-specific requirements and that's why we offer customization of reports. With our customization in place, you can request for any particular information from a report that meets your market analysis needs.
To achieve a consistent view of the market, data is gathered from various primary and secondary sources, at each step, data triangulation methodologies are applied to reduce deviance and find a consistent view of the market. Each sample we share contains a detailed research methodology employed to generate the report. Please also reach our sales team to get the complete list of our data sources.
Contact Us
Valuates Reports
sales@valuates.com
For U.S. Toll-Free Call 1-(315)-215-3225
WhatsApp: +91-9945648335
Explore our blogs & channels:
Blog: https://valuatestrends.blogspot.com/
Pinterest: https://in.pinterest.com/valuatesreports/
Twitter: https://twitter.com/valuatesreports
Facebook: https://www.facebook.com/valuatesreports/
YouTube: https://www.youtube.com/@valuatesreports6753
Localized content:
Korean: https://www.facebook.com/valuateskorean
Spanish: https://www.facebook.com/valuatesspanish
Japanese: https://www.facebook.com/valuatesjapanese
Spanish: https://valuatesreportspanish.blogspot.com/
Korean: https://valuateskorean.blogspot.com/
German: https://valuatesgerman.blogspot.com/
Japanese: https://valuatesreportjapanese.blogspot.com/
Logo - https://mma.prnewswire.com/media/1082232/5632812/Valuates_Reports_Logo.jpg
View original content to download multimedia:https://www.prnewswire.co.uk/news-releases/semiconductors-in-server-market-set-for-strong-growth-as-ai-and-cloud-adoption-surge-through-2032--valuates-reports-302620604.html
