Worldwide Semiconductor Revenue to Reach $1.6 Trillion in 2026

Global semiconductor revenue is projected to reach $1.6 trillion in 2026, representing a massive 92% increase from the $809 billion revenue recorded in 2025, according to the latest data from Gartner. Looking further into the future, the market is forecast to total $1.9 trillion by 2027.

“The semiconductor industry is entering a fundamentally new phase of growth,” said Ben Lee, Director Analyst at Gartner. “The pace of industry expansion is accelerating dramatically, driven by sustained investment in AI infrastructure and a stronger-than-anticipated memory pricing cycle. As AI infrastructure scales, it is not only reshaping investment across the semiconductor ecosystem but also redefining the industry’s application mix. The AI data center ecosystem is expected to grow from 36.5% of the semiconductor revenue in 2026 to more than 53% by 2030, underscoring a structural shift in where semiconductor value is created and how demand is evolving across the industry.”

Revenue from the memory sector is forecast to total $837 billion in 2026 and eventually surpass the $1 trillion mark in 2027. Memory remains the primary driver of growth for the semiconductor industry this year and is expected to account for 54% of total semiconductor revenue, a significant jump from 27% in 2025. Specifically, DRAM revenue is forecast to increase by 246.6% in 2026, while NAND flash revenue is anticipated to grow by 371.9%. Although new capacity is expected to enter the market in 2027, supply-and-demand conditions are projected to remain tight as the build-out of AI infrastructure continues to drive up memory consumption.

“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.”

As AI clusters become larger, faster, and more power-intensive, they demand increasing investment in CPUs, networking silicon, power management, analog devices, and optical interconnect technologies. “AI is expanding the semiconductor opportunity across the entire infrastructure stack rather than benefiting a single device category,” said Lee. “Excluding memory, Gartner forecasts semiconductor revenue to grow from $589 billion in 2025 to $718 billion in 2026, an increase of 21.9%, and reach $864 billion in 2027.”