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Semiconductor market projected to reach $1 trillion by 2026 driven by AI and advanced packaging expansion

Friday, December 26, 2025 at 12:10 AM

Projections for 2026 indicate persistent supply pressures in DRAM and NAND flash markets, with TSMC expected to dominate as the semiconductor industry approaches a $1 trillion valuation driven by AI. In advanced packaging, major Taiwanese OSAT firms are entering a peak investment phase to compete with TSMC, while silicon photonics is expected to reach commercial milestones. However, material and equipment shortages remain a significant constraint for the IC substrate and networking PCB sectors.

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