Global semiconductor market projected to hit $1.51 trillion by 2026

The global semiconductor market is expected to jump by 89.9 per cent in 2026 compared to the previous year, reaching a record $1.51 trillion, according to projections from the industry organisation World Semiconductor Trade Statistics (WSTS) on Tuesday. This growth is being driven by massive investments from global companies amidst rapid demand for artificial intelligence (AI) technology, according to the forecast.

WSTS has sharply revised its previous estimate made last December, moving from a 26.3 per cent increase to a projected $975.46 billion. The projected growth rate would be the highest on record. This surge in projections reflects expectations that data centre expansion will continue at a pace exceeding initial assumptions. Memory chips for data storage are expected to surge approximately 3.5 times to $803.94 billion.

Japanese manufacturer Kioxia Holdings Corp. expects net profit for April–June to rise more than 47 times compared to last year. Logic semiconductors, which function as the “brain” of electronic devices, are projected to grow by 37.3 per cent to $411.37 billion.

Regionally, the Americas are expected to record the largest growth, more than doubling to $543.65 billion. Meanwhile, the Asia-Pacific region is set to experience an 87.4 per cent increase to $823.90 billion. The European market is expected to rise by 58.4 per cent to $86.64 billion, while Japan is projected to increase by 27.6 per cent to $57.05 billion.

WSTS also projects the global chip market to continue growing by 26.6 per cent in 2027 to $1.91 trillion, supported by strong investment in AI-related technologies and stable demand in other sectors, including automotive. The Japanese market is expected to grow by 18.0 per cent next year to $67.33 billion, while the Americas are set to rise by 29.0 per cent to $701.44 billion. Previously, in 2025, the global market grew by 26.2 per cent to $795.64 billion, primarily driven by memory and logic chips benefiting from data centre investments related to the expansion of AI usage.