Chip revenue heads to US$2.4 trillion on price, not volume, Yole says

Behind the surge in semiconductor revenues lies a fundamental shift in pricing power driven by AI demand. Technologically, this fuels upstream segments like EUV equipment, photoresists, and target materials, while traditional wafer volumes remain flat, highlighting capacity constraints. From a compliance standpoint, geopolitical tensions—especially in Taiwan, China and Hong Kong, China—intensify supply chain scrutiny, forcing companies to reassess manufacturing strategies and tech sovereignty. In competitive dynamics, leading firms are leveraging vertical integration and IP monopolies to consolidate market share, leaving mid-sized players vulnerable. Over the next 12–24 months, sustained AI compute demand will drive chip prices higher, but delayed capacity expansion may cause short-term volatility. The industry is entering a new era where pricing power, not volume, defines competitive advantage.