NEW DELHI — Global semiconductor revenue is on track to surpass $1.3 trillion in 2026, fueled by surging demand for artificial intelligence technologies and data center infrastructure, according to a new industry report released Wednesday.
Research firm Gartner said the chip industry is expected to grow 64 percent in 2026, marking its fastest expansion in more than two decades. The projected increase would push total revenue from $805.3 billion in 2025 to $1.32 trillion in 2026, with further growth to $1.55 trillion anticipated in 2027.
“Amid high demand for AI processing, data center 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.
A major driver of the growth is the sharp rise in memory chip prices. Memory revenue is forecast to nearly triple to $633.3 billion in 2026, up from $216.3 billion in 2025.
Prices for key memory components are expected to surge, with Dynamic Random Access Memory (DRAM) projected to increase by 125 percent and NAND flash by 234 percent in 2026. Gartner said a meaningful correction in memory pricing is unlikely before late 2027.
Artificial intelligence is emerging as the central force behind the industry’s expansion. AI-related semiconductors are expected to account for about 30 percent of total chip revenue in 2026, driven by rising investments in AI infrastructure.
Spending by hyperscale technology companies is projected to increase by more than 50 percent, boosting demand for AI accelerators such as graphics processing units and custom-designed chips.
However, the report warned that rising memory costs could dampen demand in non-AI segments, potentially delaying recovery in those areas until 2028.
Gartner also advised technology leaders to remain cautious about pricing trends.
“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, urging CIOs and IT decision-makers to avoid locking into long-term supply agreements with unfavorable pricing terms. (Source: IANS)
