Top 5 ASX semiconductor shares to watch in 2025

What are semiconductor shares?

Semiconductor shares are the stocks of publicly listed companies that are involved in the research, design, development or manufacturing of microchips – the electronic components that power almost every modern device. 

On the ASX, most semiconductor-related companies are early-stage innovators working in memory technology, advanced materials, quantum computing or chip manufacturing equipment. They tend to be small-cap, high-growth, R&D-heavy businesses with performance that’s driven by technological progress, partnerships, commercialisation milestones and global semiconductor cycles.

Why semiconductors matter right now

Semiconductors are more important than ever due to several global megatrends. The rise of AI is driving unprecedented demand for high-performance chips. Data centres and cloud computing continue to expand, requiring faster, denser and more energy-efficient semiconductors.

EVs need far more chips than traditional cars do, and their power systems rely on advanced materials such as SiC and GaN – areas where several ASX companies specialise. Industrial automation, robotics and defence technologies also depend on cutting-edge semiconductor innovation.

At the same time, governments worldwide are investing heavily in semiconductor independence due to geopolitical tensions. This global focus has brought renewed attention to companies developing new technologies, including those on the ASX. Even though Australian semiconductor firms tend to be small, their intellectual property (IP) and research can be strategically significant.

Some disappointing performance in 2025

Two shares on our list have seen disappointing performance over the past six months. Let’s look at why this might be:

• Some are burning cash quickly for research and development (R&D), and commercialisation. This raises concerns with share traders over how much capital companies will need going forward, despite the necessary investment into these initiatives
• Revenue goals remain as future milestones; many of these companies are still in the early stages of their growth, and achieving these revenue objectives is a long way off
• Global market volatility has also affected share values. Semiconductor shares are famously cyclical. Couple this with the mixed demand outlook for EVs and industrial chips, and it’s easy to see why the industry has taken a knock

The appeal of ASX semiconductor shares

For share traders, semiconductor shares offer exposure to long-term megatrends such as AI, electrification and quantum computing. While these companies can be volatile, their upside potential can be significant if their technology gains commercial traction or they secure major partnerships.

For CFD traders, ASX semiconductors are appealing because small-cap tech stocks often experience sharp price movements. Volatility creates opportunities for short-term directional trading, including trading around catalyst events such as quarterly results, product updates, patent news or capital raises.

Both share and CFD traders would do well to remember that this sector tends to be cyclical, sentiment-driven and highly sensitive to global chip industry conditions. For long-term share traders, it’s a patience game. For CFD traders, it’s a market rich in momentum but requires careful risk management.

Risks and challenges for ASX semiconductor shares

ASX semiconductor companies face several key risks:

• Commercialisation challenges: Many companies have strong technology but long pathways to revenue
• Cash burn: R&D is expensive, and several ASX players require regular capital raises
• Global competition: They compete with huge global chipmakers with far greater resources
• Market volatility: Semiconductor markets are cyclical, sensitive to global demand swings
• Geopolitical factors: Supply chain pressure and trade restrictions can affect timeframes and partnerships
• Liquidity risk: Small caps can experience sharp moves on low volume

Overall, these stocks offer high potential but great uncertainty, making them more suited to share traders who understand deep-tech risk and CFD traders who thrive on volatility.

Top 5 ASX semiconductor shares to watch in 2025

We looked at semiconductor shares on the ASX that currently show potential for either CFD traders or share traders – or both. Some of them are particularly volatile, so exercise caution when trading them. And remember, past performance is not a guarantee of future results.

Overview of the shares in this article

All the shares we discuss in this article can be share traded and CFD traded through us.

All figures are accurate as of 20 November 2025.

1. Weebit Nano (ASX: WBT)

Market cap: A$706.13 million⁶

Weebit Nano is one of the most prominent semiconductor names on the ASX, thanks to its work in Resistive RAM (ReRAM) – a next-generation memory technology designed to be faster, more durable and more energy-efficient than traditional flash memory.

The company has spent years developing its proprietary IP and working with international fabrication partners to move ReRAM toward commercial use in consumer electronics, Internet of Things (IoT) devices and embedded systems.

For share traders, Weebit represents a long-term innovation story. It’s one of the ASX’s clearest examples of a deep-tech company with global ambition. However, it also faces high R&D expenses and dependence on partners, and has the imperative to prove its technology can compete with established memory giants. Cash burn is a consideration, but the company has historically maintained a reasonable financial buffer.

Highlights:

• One reason share traders watch Weebit closely is that memory is a huge global market, and any foothold in the semiconductor supply chain can be extremely valuable
• For CFD traders, the shares are known for their volatility. Prices can move sharply around announcements, quarterly updates or industry news from major memory players overseas
• Overall, the company is a high-potential but high-risk semiconductor innovator

2. Archer Materials (ASX: AXE)

Market cap: A$81.55 million⁷

Archer Materials sits at the intersection of semiconductors, quantum technology and biochips. The company is developing its ‘12CQ’ quantum chip – an ambitious project that aims to create a room-temperature quantum computing device. This is highly experimental technology, but if successful, it could play a role in future quantum processors.

Archer is also exploring biochip applications, particularly in diagnostics.

What makes the company stand out is its emphasis on IP protection and advanced materials research. It’s received multiple patents across several regions, helping support the value of its technology portfolio. Much of Archer’s work focuses on integrating its experimental chips into existing semiconductor manufacturing processes, which is a crucial step toward eventual commercialisation.

Revenues have not yet materialised, and commercial pathways remain long and uncertain. This is a speculative, research-driven company, and progress depends on achieving technical milestones rather than near-term sales

Highlights:

• Archer’s strength lies in its strong IP, early mover status and exposure to two cutting-edge fields – quantum computing and biotechnology
• CFD traders may find trading opportunities because the shares can react strongly to patent approvals, research updates or shifts in quantum-computing sentiment globally
• Its price action tends to be momentum-driven, influenced by both technological optimism and share trader risk appetite

3. BluGlass Limited (ASX: BLG)

Market cap: A$31.38 million⁸

BluGlass is a semiconductor manufacturing company specialising in gallium nitride (GaN) technology. GaN semiconductors are increasingly important in power electronics, LEDs, laser diodes and energy-efficient devices. BluGlass’s proprietary technology – Remote Plasma Chemical Vapour Deposition (RPCVD) – is designed to improve the quality and lower the cost of producing GaN materials.

GaN is a rapidly growing global market thanks to trends such as electrification, robotics, industrial lasers and EV charging systems. BluGlass is positioning itself as a supplier and manufacturer within this value chain. In recent years, the company has focused more heavily on laser diode production, including building out its production capability and securing commercial contracts.

For share traders, BluGlass offers exposure to a specialised, high-growth semiconductor niche. However, it remains an early-stage company with an ongoing need for funding.

Highlights:

• If the company can scale up production and secure lasting commercial relationships, it could expand meaningfully
• CFD traders find the company appealing due to its sharp price swings, often triggered by manufacturing updates, customer announcements or capital-raising activity
• It’s better suited to share traders who understand early-stage deep-tech risks and CFD traders who thrive on technical and news-driven volatility

4. 4DS Memory Limited (ASX: 4DS)

Market cap: A$22.67 million⁹

4DS Memory is another ASX-listed company developing next-generation memory technology, specifically non-volatile ReRAM designed for high-density data storage. The company works closely with research partners to advance its memory cell technology, with the goal of eventually integrating it into high-performance computing systems and data-centre applications.

One of 4DS’s key strengths is the strategic importance of memory in global computing. With AI, cloud computing and data-heavy industries expanding rapidly, demand for better, faster memory has never been higher. If 4DS’s technology can demonstrate superior performance or cost advantages, it may attract commercial interest from major manufacturers.

From a share trader standpoint, it’s a speculative, high-potential share that depends heavily on technical milestones, partner results and external validation. The company has historically had limited revenue, and like many peers, it experiences ongoing R&D-related cash burn.

Highlights:

• Another company on our list that CFD traders might find particularly attractive, due to its volatility levels. Even small research updates can drive double-digit moves, making it a momentum-driven stock for active traders
• The company’s opportunity lies in its exposure to a critical segment of the semiconductor industry (memory), but the risks also fall under commercial uncertainty and capital requirements

5. Silex Systems Limited (ASX: SLX)

Market cap: A$2.28 billion¹⁰

Silex Systems is a unique technology company working across advanced materials, semiconductor substrates and laser technology. While best known for its uranium enrichment technology, Silex is also involved in semiconductor-related activities through its work on crystalline rare earth oxide (cREO) thin-film materials, which are specialised substrates used in high-performance electronics, communications devices and next-generation semiconductor components.

This diversification gives Silex exposure to multiple future-facing industries. Its semiconductor materials arm has potential applications in radio-frequency devices, high-speed communications and optoelectronics. Meanwhile, its broader technology portfolio helps differentiate it from pure-play semiconductor startups.

The company’s IP is well-established, and it operates in industries with long-term structural demand. However, the semiconductor portion of its business is still emerging, and growth will depend on industry adoption of its substrate technology.

Highlights:

• For CFD traders, Silex tends to be less volatile than some of the smaller semiconductor names
• Its diversified activities can sometimes reduce volatility but can also create mismatches between share trader expectations and actual performance

How to trade ASX semiconductor shares with IG AU

CFDs

1. Open a CFD trading account with IG AU
2. Search for ASX semiconductor shares on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it

Share trading

1. Open a share trading account with IG AU
2. Search for ASX semiconductor shares
3. Choose the shares you want to buy
4. Determine how many shares you want to purchase
5. Place your order
6. Monitor your investment and collect any dividends

FAQs about semiconductor shares

Footnotes
 

1. TradingView, November 2025
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