According to an updated forecast published by Gartner, global semiconductor manufacturers’ revenue could rise sharply this year — by as much as 92% — reaching $1.56 trillion. That would be nearly double the industry’s revenue of $809 billion recorded last year.
How Gartner changed its outlook
Gartner had previously projected a smaller increase of 64%, with a forecasted total of $1.32 trillion. In the new outlook the firm expects revenue to continue growing into next year, reaching about $1.94 trillion.
What is driving the increase?
Ben Lee, an analyst at Gartner, attributes the accelerating growth to continued investments in artificial intelligence (AI) infrastructure and to rising prices for memory chips. Strong demand for memory products and higher chip prices are significant contributors to the sector’s revenue expansion.
Memory-chip figures
Gartner expects revenue from memory-chip sales to be approximately $837 billion this year, rising to $1,075 billion next year. Within that segment, the forecast calls for DRAM revenue to grow by 246.6% this year and NAND flash revenue to expand by 371.9%.
Semiconductor revenue and other figures
The firm also projects that revenue derived from semiconductors will increase from $589 billion last year to $718 billion this year, and to $864.4 billion in the following year.
Why this matters
The combination of higher memory-chip prices and sustained AI-related capital spending is reshaping revenue dynamics across the chip industry. Such marked growth affects supply chains, production capacity planning and investment decisions among suppliers and manufacturers in the sector.
