AI drives semiconductors to new heights, TSMC's dominant position in wafer foundry remains secure.

2026/02/26

TechNews Report
February 22, 2026
Author: Chang Chien-chung, Central News Agency

Strong demand for artificial intelligence (AI) is expected to drive global semiconductor revenue to a new record high of approximately US$1 trillion in 2026. TSMC is a major beneficiary of the AI trend, with its US dollar revenue expected to grow by nearly 30% in 2026, exceeding the industry average again and solidifying its position as the world's leading foundry.

Following growth of over 20% in 2025, global semiconductor revenue is expected to continue its growth trend in 2026, reaching a new record high, according to research firms World Semiconductor Trade Statistics (WSTS) and Omdia. WSTS estimates semiconductor revenue will reach US$975 billion in 2026; Omdia further predicts that it could exceed the US$1 trillion mark.

WSTS and Omdia believe that memory and logic ICs will be the main drivers of semiconductor revenue growth in 2026, benefiting from strong demand for data center servers and memory, as well as rising memory prices. Excluding memory and logic ICs, semiconductor revenue growth in 2026 will plummet from 30.7% to around 8%. This indicates that semiconductor revenue growth is highly concentrated on AI-related demand, rather than traditional consumer or industrial sectors.

GlobalWafers, a semiconductor silicon wafer manufacturer, points out that 2026 will still be a very good year for semiconductors, but there will be differences across different application areas and process technologies. AI will remain a key driver for semiconductors.

Strong demand for AI infrastructure and unexpectedly strong memory procurement by cloud service providers (CSPs) have led to an unprecedented shortage of traditional hard drives, dynamic random access memory (DRAM), and NAND flash memory, with prices rising at an unprecedented rate.

DRAM prices have historically seen quarterly increases of up to 35%, and in the fourth quarter of 2025, DRAM price increases are projected to reach 53% to 58%. Market research firm TrendForce predicts that DRAM prices will rise by over 60% in the first quarter of 2026, while NAND Flash prices will also increase by 55% to 60%; memory production value is expected to surge by 134% in 2026.

TSMC, leveraging its leading logic process technology and advanced packaging technology, is reaping significant opportunities in the AI graphics processing unit (GPU) and application-specific integrated circuit (ASIC) foundry business. Its operations are expected to continue strong growth in 2026, with USD revenue growth approaching 30%, consistently exceeding the 14% growth rate of the wafer manufacturing 2.0 industry, which includes logic wafer manufacturing, advanced packaging, testing, and photomask fabrication.

TSMC forecasts that AI accelerator revenue will experience a compound annual growth rate of 54% to 59% from 2024 to 2029, representing the biggest driver of revenue growth. International Data Corporation (IDC) predicts that TSMC will hold a 73% global wafer foundry market share in 2026, firmly maintaining its position as the leading wafer foundry.

【Disclaimer】
The content of this article only represents the author's personal views and has nothing to do with Creating.
The content, text description and originality have not been verified by this site. This site does not make any guarantee or commitment to this article and all or part of the content, authenticity, completeness, and timeliness. It is for readers' reference only. Please verify the relevant content yourself.

Creating Nano Technologies, Inc.
59 Alley 21 Lane 279, Chung Cheng Road, Yung Kang City, Tainan, TAIWAN
TEL:886-6-2323927 FAX:886-6-2013306 URL: http://www.creating-nanotech.com

BACK TO LIST