Global semiconductor revenue is predicted to grow 62.7 percent growth in 2026, according to Omdia. The accelerated increase is being driven by booming AI demand and persistent shortages in DRAM and NAND memory markets.
The DRAM sector is expected to nearly double in value, while NAND could quadruple from 2025 levels as suppliers prioritise high-margin high bandwidth memory (HBM) over conventional chips.
Enterprises and hyperscalers are ramping up data centre investments, triggering a server refresh cycle that boosts memory-intensive applications. Computing and data storage segments will lead with 90 percent year-on-year growth, surpassing US$700 billion, amid elevated memory prices.
Supply relief are unlikely before late 2027, exacerbating the global crunch.
Consumer electronics, including smartphones and wearables, face rising costs from higher memory bills of materials, despite flat unit shipments. Flagship devices with AI features and foldables will contribute to revenue gains.
“Supporting the progression of AI beyond simple Q&A use cases has exponentially increased demand for memory and processing ICs, fueling semiconductor industry revenues overall,” said Myson Robles-Bruce, Senior Principal Analyst of Omdia.
“However, questions remain around how quickly suppliers can scale capacity and output of supply, and longer term, which applications will generate sufficient return on investment to justify the current levels of capital expenditure in AI,” he added.
Photo: Samsung
Entelechy Asia 