Gartner projects global semiconductor revenue will reach $1.3 trillion by 2026. This forecast represents a 64% surge in market value.
The primary driver is memflation, a massive spike in memory chip prices. DRAM prices are expected to increase by 125%. NAND flash memory prices will likely rise by 243%.
Hyperscale cloud providers are fueling this trend through demand for AI infrastructure. AI-related components will account for approximately 30% of the total semiconductor market in 2026.
The focus on AI is diverting resources and disrupting supply chains for non-AI applications. Gartner warns these disruptions will delay or destroy demand in other sectors through 2028. Technology suppliers must prepare for significantly higher costs throughout the year.