New Delhi, Aug 25: The global semiconductor industry is expected to witness another strong year of growth, with revenue projected to reach around $1.9 trillion in 2027, according to the report, as rising investment in artificial intelligence infrastructure and increasing demand for memory chips reshape the market.
The global semiconductor market is projected to grow to about $1.6 trillion in 2026, before expanding further in 2027. The growth is being supported largely by the rapid expansion of AI data centres and the growing requirement for advanced computing and memory technologies.
AI infrastructure is becoming an increasingly important source of semiconductor demand. The report projects that the AI data-centre ecosystem could account for more than half of total semiconductor revenue by 2030, reflecting the rapid expansion of AI computing capacity worldwide.
Memory chips are expected to remain a major growth driver. Memory revenue is projected to reach around $837.3 billion in 2026 and cross the $1 trillion mark in 2027. Increasing demand for high-bandwidth memory, particularly for AI servers, is contributing to tighter supply conditions and higher market revenues.
Demand is also expected to remain strong for DRAM and NAND flash memory as AI systems require greater storage and computing capacity. Although additional production capacity is expected to come online, continued expansion of AI infrastructure could keep demand pressure high.
The semiconductor growth story is not limited to memory. AI data centres are also generating stronger demand for processors, networking chips, power-management components, analogue devices and optical interconnect technologies.
The non-memory semiconductor segment is projected to reach around $864 billion in 2027, highlighting the wider impact of AI investment across the semiconductor supply chain.
The report indicates that the industry's growth is being supported by a combination of higher AI infrastructure spending, increasing memory requirements per AI server and continued investment in data-centre capacity.
The projected expansion could create opportunities across chip manufacturing, memory production, semiconductor equipment, advanced packaging, networking and data-centre infrastructure.
With AI becoming a central driver of technology investment, the semiconductor industry is expected to remain a key part of the global technology economy, with strong revenue growth anticipated through 2027.
