Procurement Pro takes a look at the top news stories from August 2025.
Global semiconductor market shows continued growth in Q2
The World Semiconductor Trade Statistics (WSTS) organisation has released Q2 statistical data and confirmed the WSTS Spring forecast for the global semiconductor market through 2026.
The global semiconductor market reached €346 billion in the first half of 2025, marking an 18.9% increase year-over-year. Growth was driven primarily by strong gains in Logic (up 37%) and Memory (up 20%), supported by demand for data centre infrastructure and the emergence of initial AI Edge applications. Sensors also performed well, rising 16%. Analog and Micro categories saw moderate growth of 4% each, respectively. In contrast, Discretes (-4%) and Optoelectronics (-0.5%) posted single-digit declines.
Intel pulls plug on major chip projects in Germany and Poland
Intel has officially cancelled two high-profile semiconductor investments in Europe – a multibillion-dollar chip manufacturing facility in Magdeburg, Germany, and a €4.6 billion assembly and test site near WrocÅ‚aw, Poland.
The decision, confirmed by CEO Lip-Bu Tan in a staff memo, marks a significant reversal of the company’s European strategy and deals a blow to the EU’s ambitions for semiconductor independence.
Arrow Q2 sales jump 10% y-o-y
Arrow Electronics sustained its Q1 momentum into Q2, reporting year on year revenues up 10% to $7.58 billion. First half revenues of $14.4 billion rose 4% against H1 24.
“In our global components business, while momentum in Asia was especially strong, we enjoyed sequential growth in all three operating regions,” said Sean Kerins (pictured), Arrow’s President and CEO. “In addition, our leading indicators continue to suggest that a modest cyclical recovery is in flight.”
In the second quarter of 2025, global components sales exceeded the high end of Arrow’s guidance range, increased 5% year over year, and increased 3% year over year on a constant currency basis.
Avnet Q4 sales grow amid “positive signals”
Avnet Q4 sales grew 1% year on year and 5.7% sequentially to $5.62 billion at the high end of Avnet’s expectations.
In the full year revenues were $22.2 billion, compared with $23.8 billion in the prior year.
“In fiscal year 2025, we executed well given the overall market environment, and I want to express my gratitude to our team for their dedication in supporting our supplier and customer partners. Thanks to their efforts, we managed costs effectively and made progress on working capital optimisation to enhance operating cash flow,” said Avnet Chief Executive Officer Phil Gallagher (pictured). “We remain optimistic about the recovery led by steady growth in our Asia region and the return of Farnell to year-over-year growth, which enabled us to surpass the high end of our fourth-quarter sales and earnings guidance. We are encouraged by these positive signals as we start the new fiscal year.”
Trump announces 100% tariff on foreign-made chips
President Trump has announced plans to impose a 100% tariff on imported semiconductors, signalling a potentially significant escalation in trade policy that could impact the global electronics supply chain.
The proposed levy would apply to foreign-made computer chips, raising costs on a wide array of consumer and industrial goods, including electronics, vehicles, and household appliances.
NVIDIA, AMD granted licences to sell chips to China
Amidst an already turbulent geopolitical environment which has seen President Trump announce a 100% tariff on imported semiconductors, there is one bright spot – at least for NVIDIA and AMD. The US government has granted both semiconductor companies export licences to allow them to sell its H20 chip and M13087 chip to the Chinese market, respectively.
It comes with a caveat: both NVIDIA and AMD must pay 15% of the revenue generated from the sale of these chips to China.
SoftBank will buy $2 billion stake in Intel
Intel shares jumped by 5% in after-hours trade in New York on Monday after SoftBank announced it would be buying a $2 billion (£1.5 billion) stake in Intel, equating to $23 per share.
It follows the latest in the US government’s push for sovereign manufacturing after reports circulated that the government planned on buying a 10% equity stake, which would make the government one of Intel’s largest shareholders. It marked what some experts were calling “unprecedented,” with regards to the US government’s involvement in private sector companies.
NVIDIA earnings confirm AI’s dominance
NVIDIAÂ has reported stronger-than-expected earnings and revenues, with sales guidance of $54 billion for the current quarter, reinforcing that artificial intelligence demand is driving an unprecedented expansion of infrastructure.
This latest confirmation cements AI as the most powerful force shaping global markets, says global financial advisory giant deVere Group.
The results landed as the S&P 500 sits at an all-time high, after closing up more than 0.2% on Tuesday. The Dow Jones Industrial Average rose nearly 0.4% and the Nasdaq Composite advanced 0.2%, with traders positioning ahead of the earnings release.
