Global semiconductor revenue will top $1 trillion in 2026 for the first time ever, reaching $1.3 trillion—showing the highest growth in the last two decades, according to an updated Gartner forecast.

Increased prices for memory during a memory shortage are a primary cause of the overall increase, up by 64% from a year ago. Memory price inflation will “destroy, or at least delay, non-AI demand into 2028,” Gartner analyst Rajeev Rajput added in a statement.

While overall semiconductor growth in 2026 is 64% higher than revenues in 2025, memory revenue is expected to increase threefold, going from $216 billion in 2025 to 633 billion in 2026. DRAM and NAND flash prices in 2026 will increase by 125% and 234% respectively.

AI semiconductors are expected to make up 30% of total semiconductor revenue in 2026, Gartner said.

Gartner said Nvidia had 16% of the semiconductor revenue in 2025, leading Samsung Electronics with 9%. Micron had 5% while Intel had 6%. Some companies like AMD (4% in 2025) incorporate sensor fusion in their semiconductors.

“Amid high demand for AI processing, data center networking and power and memory price inflation, the semiconductor industry is projected to achieve a third consecutive year of double-digit growth in 2026,” he added.

In addition to memory, sensors make up part of the semiconductor sector, as many modern sensors are also properly termed semiconductor devices. A semiconductor sensor uses the electrical properties of materials like silicon, germanium or gallium arsenide to detect when temperature, pressure or light conditions change, and then converts that change into an electrical signal. Mechanical sensors are not semiconductors, however.

By: DocMemory
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