New Delhi — Global semiconductor revenue is expected to rise to $1.6 trillion in 2026 and reach $1.9 trillion in 2027 as artificial intelligence infrastructure spending and strong memory-chip pricing fuel industry growth, according to a Gartner report.
The research firm said semiconductor revenue is projected to increase 92% from $809 billion in 2025, marking what it described as a fundamentally new phase of growth for the industry.
Memory chips are expected to be the biggest contributor to that expansion. Gartner projects memory revenue of $837 billion in 2026, rising to more than $1 trillion in 2027.
Memory is forecast to account for 54% of total semiconductor revenue in 2026, up sharply from 27% in 2025.
“Rising AI infrastructure is reshaping investment across the semiconductor ecosystem and redefining the industry’s application mix,” said Ben Lee, Director Analyst at Gartner.
Lee said the AI data center ecosystem is expected to account for 36.5% of semiconductor revenue in 2026 and more than 53% by 2030, reflecting a major shift in where semiconductor demand and value are being created.
Gartner expects DRAM revenue to surge 246.6% in 2026, while NAND flash revenue is forecast to increase 371.9%.
Although additional production capacity is expected to enter the market in 2027, Gartner said supply and demand conditions are likely to remain tight as expanding AI infrastructure continues to consume greater amounts of memory.
“AI infrastructure has fundamentally changed the dynamics of the memory market,” said Shrish Pant, Director Analyst at Gartner.
“While pricing expansion is accelerating growth in 2026, continued AI infrastructure deployments, higher memory content per AI server and sustained demand for high-bandwidth memory (HBM) will support memory revenue growth through 2027 and beyond,” Pant added.
The expansion of AI computing clusters is also driving demand beyond memory. Larger, faster and more power-intensive systems require increased investment in CPUs, networking chips, power management components, analog devices and optical interconnect technologies. (Source: IANS)
