New Delhi: Global semiconductor revenue is projected to exceed $1.3 trillion in 2026, marking the fastest growth in over two decades, according to a report released on Wednesday.
The report by research firm Gartner said the industry is expected to register a 64 per cent growth in 2026 amid strong demand from artificial intelligence (AI) processing, data centre infrastructure and rising memory prices.
“Amid high demand for AI processing, data centre networking and power, and memory price inflation, the semiconductor industry is projected to achieve a third consecutive year of double-digit growth in 2026,” said Rajeev Rajput, Senior Principal Analyst at Gartner.
The report further highlighted that total semiconductor revenue is expected to rise from $805.3 billion in 2025 to $1,320.2 billion in 2026, and further to $1,554.5 billion in 2027.
Memory revenue is forecast to nearly triple to $633.3 billion in 2026 from $216.3 billion in 2025, largely due to inflation in memory chip prices.
As per Gartner’s analysis, Dynamic Random Access Memory (DRAM) prices are estimated to ncrease by 125 per cent and NAND flash prices by 234 per cent in 2026, with any significant price correction unlikely before late 2027.
The report noted that AI semiconductors are expected to account for around 30 per cent of total industry revenue in 2026 and will remain the primary growth driver.
Spending by hyperscalers on AI infrastructure is projected to grow by more than 50 per cent, boosting demand for AI accelerators, including GPUs and custom chips.
However, the report also cautioned that rising memory prices could delay demand in non-AI segments until 2028.
“Technology suppliers should prepare for higher prices in the first half of 2026, followed by moderating increases through the rest of the year,” Rajput said, advising CIOs and IT leaders to be cautious about long-term supply agreements with unfavourable pricing terms.
(IANS)
