Global Chip Market Projected to Top $1.6 Trillion in 2026 on AI Infrastructure Investment
The global semiconductor market is projected to exceed $1.6 trillion in 2026, more than 1.5 times an earlier forecast, on rising AI infrastructure investment, with Samsung and SK hynix memory chips expected to account for more than half, according to a report.
The report, based on analysis by global market research firms including TrendForce, said memory chips produced by Samsung Electronics and SK hynix are expected to account for more than half of the global semiconductor market as the volume of data processed by AI systems soars.
The outlook was sharply revised upward from earlier expectations. Until last year, the global semiconductor market was expected to exceed $1 trillion only in 2030. Major U.S. and Chinese hyperscalers that operate large-scale data centers have rapidly increased investment in AI infrastructure, the report said.
The forecast comes amid calls in some parts of the AI industry to slow development over concerns about losing control of the technology.
Memory chip prices have climbed sharply. As of the end of last month, prices of dynamic random access memory and NAND flash memory chips stood at $25 and $30.5, respectively, up 4.4-fold and ninefold from a year earlier, according to the report.
Memory chip prices are expected to stabilize from next year, but the global semiconductor market is forecast to continue growing on steady demand, reaching about $2 trillion by 2030, the estimate said.
“Big tech companies are pursuing long-term supply agreements with memory chipmakers such as Samsung Electronics and SK hynix, which will help stabilize the semiconductor industry compared with the past,” the report said.
Industry sources said that with investment by big tech firms in AI and the spread of AI services accelerating, it will be difficult for the memory chip market to lose momentum in the near term.
The report also cited employment data for the chip industry. Employment stood at 174,000 in the first quarter of this year, up 15 percent from 152,000 in the first quarter of 2018, when the Korean Statistical Information Service began compiling related data.
The average monthly salary of workers in the industry was 4.32 million won ($3,100) in the first half of this year, up 3.1 percent from a year earlier, according to the Korea Enterprises Federation. The annual wage increase was largely attributable to sharply higher bonuses at semiconductor companies.