AI Chipset Market Report 2025 (Global Edition)

Global AI Chipset Market Report 2025 Market Size Split by Component (Central Processing Unit (CPU), Graphics Processing Unit (GPU), Neural network Processor (NNP)), by Application (Consumer Electroni...

AI Chipset Market Report Description

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Imapct of Trumph Tariff on Electronics and Electrical Industry

In 2025, global trade has entered a period of renewed volatility as the U.S., under President Donald Trump, introduced sweeping tariffs known as the Liberation Day Tariffs. Aimed at addressing trade imbalances and foreign supply chain dominance, the tariffs range from 10% on allies like Australia and the UK to 46% on Vietnamese goods and 34% on Chinese imports. A 25% universal tariff on steel, aluminum, and auto parts has further strained global trade ties. The electronics sector is among the hardest hit, particularly due to the escalating U.S.China trade war. Tariffs on Chinese goods now reach up to 145% in sectors like semiconductors and consumer electronics, while China has retaliated with up to 125% duties and restrictions on critical mineral exports. This has disrupted just-in-time supply chains and increased component costs.

Specific tariffs include 25% on semiconductors, 20% on lithium-ion batteries, and 10–15% on consumer electronics like laptops and tablets, leading to higher retail prices and reduced consumer demand. Sub-sectors such as home automation, computer hardware, communication electronics, medical devices, and industrial electronics are all under pressure due to rising input costs and supply chain delays. Companies are revisiting suppliers, shifting sourcing to countries like India, Mexico, and Vietnam, and redesigning products to avoid high-tariff components.

China remains a key player, contributing USD 119 billion in electronics exports to the U.S. in 2023. Even components routed through countries like Malaysia and Vietnam often rely on Chinese subparts, making the ripple effect of tariffs widespread. U.S. electronics firms operating on thin margins are seeing input costs rise 18–25%, with contract manufacturers in alternative regions facing capacity constraints.

Market research is now critical. It helps companies identify new suppliers, analyze cost trends, optimize product design, forecast demand shifts, and track regulatory changes. Tools like supplier mapping, BOM optimization, and scenario planning support strategic responses to ongoing disruptions. Leading firms like Apple and Dell are expanding production outside China, while others invest in digital supply chain tools and redesign products for cost resilience. In this evolving trade environment, firms that leverage research-driven strategies are better positioned to adapt and thrive.

AI Chipset Market Insights Video

Competitive Landscape of the AI Chipsets

In March 2021, Intel collaborated with the Central Board of Secondary Education, focusing on introducing the 'AI For All' initiative to generate a basic understanding of artificial intelligence across several industry verticals in India.

(Source: https://www.intel.com/content/www/us/en/homepage.html)

Top Companies Market Share in AI Chipset Industry: (In no particular order of Rank)

• NVIDIA Corporation (US)
• AMD (US)
• Samsung Electronics Co. Ltd. (South Korea)
• Qualcomm Technologies Inc (US)
• Micron Technology Inc (US)
• IBM (US)
• Texas Instruments Incorporated (US)
• Huawei Technologies Co. Ltd. (China)
• Apple Inc. (US)
• Alphabet Inc. (US)
• NXP Semiconductors (Netherlands)
• Infineon Technologies AG (Germany)
• Graphcore (UK)
• Intel Corporation (US)
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Regional Analysis of AI Chipsets

Which Region Dominates the AI Chipsets Market in 2024?

According to Cognitive Market Research, North America dominated the market in 2024 and accounted for around 40% of the global revenue due to a robust ecosystem of semiconductor companies, substantial investments in AI research and development, and a high adoption rate of AI technologies across various industries. Additionally, the region benefits from strong government support for technological innovation and a large pool of skilled professionals. Primary tech hubs like Silicon Valley in the United States further contribute to North America's leadership in AI chipsets, driving innovation and market growth.

Which Region is Expanding at the Fastest CAGR?

Asia-Pacific stands out as the fastest-growing region in the AI Chipsets market as it benefits from the increasing adoption of AI technologies across different industries such as manufacturing, healthcare, and automotive. Additionally, the region hosts several emerging economies with a strong emphasis on technological advancements and innovation. Moreover, government initiatives and investments in AI research and development further propel the growth of the AI chipsets market in the Asia Pacific region.

The current report Scope analyzes AI Chipset Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

AI Chipset Market Analysis

Component Segment Analysis of AI Chipset Market

In terms of market segmentation split by Component we have analyzed Central Processing Unit (CPU), Graphics Processing Unit (GPU), Neural network Processor (NNP) on the basis of key leading segment revenue and share along with reasons behind its dominance across the global as well as region level. Additionally, we have also incorporated revenue and Y-O-Y growth of each segment with detailed qualitative analysis.

Component of AI Chipset analyzed in this report are as follows:

• Central Processing Unit (CPU)
• Graphics Processing Unit (GPU)
• Neural network Processor (NNP)

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of AI Chipset Industry. Request a Free Sample PDF!

AI Chipsets Market Application Segment Analysis

According to Cognitive Market Research, consumer electronics category is the dominating category due to the widespread integration of AI-powered features in smartphones, smart TVs, wearables, and other devices. These chipsets enable functionalities such as voice recognition, image processing, and augmented reality, enhancing user experiences. The demand for increasingly sophisticated AI capabilities in consumer electronics continues to drive innovation in AI chipset development, with manufacturers competing to deliver faster, more energy-efficient chips tailored to the specific requirements of modern consumer devices.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Author's Detail

Kalyani Raje

Senior Research Analyst at Cognitive Market Research

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ResearchGate Profile: https://www.researchgate.net/profile/Kalyani-Raje

An optimistic Senior Research Analyst with years of experience in competitive assessment and business consulting. A seasoned professional and subject-matter expert (SME) in the Automobile and transportation vertical.

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