Omdia Forecasts 94.1% Semiconductor Revenue Growth in 2026 Led by Memory ICs
Omdia has forecasted that the global semiconductor industry's revenue will surge by 94.1% year-on-year in 2026, exceeding $1.6 trillion. This growth is primarily driven by memory ICs, which are expected to reach nearly $900 billion and account for over half of the total market revenue. The forecast underscores the massive, sustained impact of AI infrastructure demand on the global hardware supply chain. It indicates a shift where memory-intensive applications dictate market dynamics, potentially leaving non-AI sectors struggling with supply shortages. The computing and data storage segment is expected to lead the market, growing over 150% to nearly $1 trillion due to rising average selling prices of memory. Additionally, manufacturing capacity is projected to remain tight from mid-2026 to early 2027, driving up costs for advanced packaging and memory.
## BACKGROUND
Memory ICs (integrated circuits) are semiconductor devices used for digital data storage, which are critical for running AI models that require high-speed data access. Advanced packaging refers to techniques that bundle multiple chips, such as processors and memory, into a single package to boost performance and efficiency beyond traditional manufacturing limits.