Hyperscale CSPs are ramping up investments in servers and AI infrastructure, according to TrendForce’s latest AI server industry research. Combined CapEx among the world’s nine leading CSPs is projected to surge 106% YoY to US$957 billion in 2026. In 2027, this figure is expected to surpass $1.5 trillion, representing a further 60% YoY increase. Both forecasts have been revised upward from previous estimates.
TrendForce’s latest research on AI interconnect technologies reveals that growing demand for high-speed transmission in AI data centers is accelerating the transition of co-packaged optics (CPO) toward mass production, making shorter test times and lower costs increasingly important. Furthermore, demand for integrated test equipment and software is rising as CPO requires coordinated electrical and optical measurements.
TrendForce’s latest report, “2027 Infrared Sensing and Optical Communication Market Trend”, shows that rapidly growing demand for data transmission in expanding data center networks is increasing interest in VCSEL-based near-packaged optics (NPO). This technology is favored for its low power usage, easier maintenance, and a mature supply chain. Major companies like Lumentum, Furukawa Electric, Coherent, Broadcom, ams OSRAM, and HiSilicon are investing heavily in R&D.
TrendForce’s latest memory industry research reveals that DRAM suppliers continue to prioritize advanced-process capacity for high-performance server products in 4Q26, keeping the overall market undersupplied. However, the pace of contract price increases is expected to moderate, with conventional DRAM prices projected to rise 10–15% QoQ.
TrendForce’s latest research reveals that continued expansion in AI server demand is keeping HBM and conventional DRAM in competition for limited advanced-process and wafer capacity. Meanwhile, yields and output for next-generation products will take time to ramp, keeping memory supply tight through 2027.
