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The global semiconductor market is heading for a blockbuster 2026, with Omdia sharply raising its revenue growth forecast to 62.7%. The revision reflects surging demand for memory chips, particularly DRAM and NAND, as AI workloads continue to reshape infrastructure needs.

For eeNews Europe readers, this signals both opportunity and risk across the supply chain — from component shortages to rising system costs and shifting design priorities.

Memory crunch intensifies

At the center of the surge is a deepening memory supply crunch. Omdia expects DRAM market value to nearly double in 2026, while NAND could grow as much as fourfold compared to 2025. A key factor is the industry’s pivot toward High Bandwidth Memory (HBM), which offers higher margins but lower production volumes.

This shift is tightening supply of conventional memory ICs, pushing prices higher and extending shortages into 2027. At the same time, hyperscalers and enterprises are accelerating server refresh cycles, replacing legacy systems to support AI-driven workloads.

The result is a strong upswing in computing and storage segments, projected to grow 90% year-on-year and surpass $700bn in revenue.

Rising prices, broader impact

Beyond data centers, consumer electronics and wireless markets are also benefiting. While smartphone shipments remain flat, higher memory prices are increasing bill of materials costs, boosting semiconductor revenues. New flagship devices, foldables, and AI-enabled features will sustain momentum, alongside growth in wearables.

“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 at 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.”

Looking ahead, Omdia cautions that growth is being driven more by pricing than unit volumes — a dynamic seen in past cycles, but now at unprecedented scale.

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