Global semiconductor market to jump 90% in 2026 on AI demand
The global semiconductor market is projected to grow by 89.9% in 2026, reaching roughly $1.51 trillion, driven by AI demand for memory chips in data centers. The World Semiconductor Trade Statistics attributes this surge to rising prices for AI-specific components, with further 26% growth expected in 2027, though supply-demand gaps may ease by 2028.
The global semiconductor market is expected to expand by nearly 90% in 2026, reaching a record $1.51 trillion, according to the latest report from the World Semiconductor Trade Statistics. The forecast, released this month, highlights soaring demand for memory chips used in AI data centers as the primary driver of growth. The organization’s projections are based on corporate data and other sources, updated semiannually. Memory chip prices, particularly for AI applications, are fueling the surge, with the market set to rise an additional 26% in 2027 due to sustained AI-related demand. Analysts note that while demand remains strong, the gap between supply and demand for memory chips could begin narrowing by 2028. This shift may help stabilize prices, though the immediate outlook remains bullish for semiconductor manufacturers. The report underscores the critical role of AI in reshaping the semiconductor industry, with data centers driving much of the growth. The projected expansion reflects broader trends in technology adoption, particularly in machine learning and cloud computing. Industry observers suggest that while challenges like supply shortages persist, long-term investments in chip production may help meet future demand. The forecast signals a transformative period for the sector, with AI at its core.
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