DIGITIMES Insight: AI sends the semiconductor market toward US$1.6T, with memory doing the heavy lifting

The AI-driven semiconductor demand surge is propelling the global market from $791.7B in 2025 to $160B in 2026, a growth of over 100%. Memory chips, especially DRAM and NAND Flash, are the primary catalysts, driven by AI training and inference workloads. Technologically, this demand is accelerating the adoption of advanced nodes and heterogeneous integration, with packaging and interconnects becoming critical enablers. From a compliance standpoint, geopolitical tensions are intensifying supply chain fragmentation, particularly in equipment and materials, raising operational costs and risks for firms. Competitive dynamics are intensifying, with U.S., Japan, and South Korean players vying for dominance in AI chip ecosystems, while Taiwan, China and South Korea maintain leadership in advanced process nodes. Over the next 12–24 months, sustained AI demand will fuel memory growth, but supply chain disruptions and technology restrictions may cause regional capacity imbalances, compelling firms to diversify sourcing strategies.