The world will spend a staggering $1.3 trillion on semiconductors in 2026, marking the largest growth in two decades, market research company Gartner reported on Wednesday.<\/p>\n
The figure shows a 64% year-over-year revenue increase for semiconductor companies, and it\u2019s not just AI chips doing the heavy lifting.<\/p>\n
According to Gartner, memory chips and networking capabilities will play a major role in the ongoing boom.<\/p>\n
\u201cAmid high demand for AI processing, data center 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 \u2014 a milestone that underscores the sector\u2019s pivotal role in the AI technology stack,\u201d Gartner senior principal analyst Rajeev Rajput said in a statement.<\/p>\n
Memflation refers to the continuing price hikes on memory chips needed to power AI servers. Only a small number of companies make memory semiconductors, including Micron (MU<\/a>), Samsung (005930.KS<\/a>), and SK Hynix (000660.KS<\/a>).<\/p>\n And because data center memory carries higher margins than consumer-grade memory, those companies are focusing on producing data center memory chips rather than those that slot into laptops or smartphones.<\/p>\n