Global semiconductor revenue is projected to exceed $1.3 trillion in 2026, exhibiting the highest growth in the last two decades, according to Gartner.
“Amid high demand for AI processing, data centre networking and power, and memory price inflation (memflation), the semiconductor industry is projected to achieve a third consecutive year of double-digit growth in 2026 – a milestone that underscores the sector’s pivotal role in the AI technology stack,” said Rajeev Rajput, Senior Principal Analyst at Gartner.
Gartner forecasts semiconductor revenue to grow 64 per cent in 2026, with memory revenue expected to increase three-fold amid memflation. It estimates DRAM and NAND flash annual prices in 2026 to increase by 125 per cent and 234 per cent, respectively, and any meaningful pricing relief is not expected until late 2027.
AI, leading factor
AI semiconductors are expected to account for approximately 30 per cent of total semiconductor revenue in 2026 and will remain the driving force behind the overall industry growth. Hyperscaler investment in AI infrastructure buildouts remains strong with spending expected to increase by more than 50 per cent in 2026, driving demand for AI accelerators, including GPUs and custom non‑GPU chips.
“Memflation will destroy, or at least delay, non-AI demand into 2028, to varying degrees depending on the application,” said Rajput. “Technology suppliers should prepare for higher prices during the first half of 2026, followed by persistent but moderating price increases throughout the rest of the year. CIOs and IT leaders should be cautious about signing supply agreements with unfavourable pricing terms that extend beyond 2027.”
Published on April 8, 2026