Strong AI data center demand is driving growth through the twin engines of AI chips and memory. Memory shortages and price hikes have pushed memory’s share of industry revenue to a record high and raised market concentration across applications. Leading fabless IC design companies posted new revenue highs. Smartphones and consumer electronics, however, remain constrained by memory costs, and end demand has yet to strengthen. Custom ASICs and optical interconnect will be the next growth drivers.

Key Highlights

• Market Size: AI infrastructure investment and rising memory prices have driven sharp growth in semiconductor revenue. Global semiconductor revenue is estimated to grow 133% YoY in 2026, reaching US$1,903 billion. Memory’s share has reached a record high, and tech-driven inflation is unlikely to reverse in the near term. Semiconductor revenue is projected to grow at a 2025-2030 CAGR of 29.7%.
• Application Mix: Data processing & storage and wired communication are growing fastest and are highly concentrated. Revenue growth in smartphones and consumer electronics comes mainly from memory price hikes rather than stronger end demand.
• Vendor Dynamics: NVIDIA remains firmly in the lead, while Broadcom and Marvell benefit from demand for custom chips and interconnect. Qualcomm and MediaTek face pressure in their smartphone businesses and are pivoting toward data centers and AI ASICs.
• Technology Trends: CPO and NPO optical interconnect, along with scale-up architectures, have become the focus of competition. Agentic AI is driving demand for CPUs and heterogeneous computing.
• Risks: CSPs may cut capital spending, and memory costs may hold back end-device specs and shipments.

Table of Contents

1. Forecast on Global IC & Semi Market
2. IC & Semi Applications
3. Dynamics of Major Suppliers
4. Chips for Servers
5. Chips for Network-Related Applications
6. Chips for Smartphones
7. Chips Related to Wi-Fi, CIS, and TDDI
8. Conclusions

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