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SEMI Taiwan President Terry Tsao predicts global semiconductor sales will reach $1 trillion in 2026 driven by AI demand
Thursday, March 19, 2026 at 01:21 AM
Terry Tsao, President of SEMI Taiwan, forecasts that the global semiconductor industry will reach US$1 trillion in sales in 2026 and expand to $2 trillion by 2035. This growth is primarily attributed to robust demand for AI chips. In 2025, the industry experienced a 26.2% increase, reaching a total of $795.6 billion.
Context
On March 18, 2026, SEMI Taiwan President Terry Tsao projected that global semiconductor sales will reach $1 trillion this year, accelerated by the massive demand for AI-related chips. This milestone arrives four years ahead of previous industry forecasts that targeted 2030 for the trillion-dollar mark. The surge follows a robust 2025 where the industry grew 26.2% to reach $795.6 billion, driven primarily by the artificial intelligence boom and a recovery in memory prices. Tsao further predicted that the market could double to $2 trillion by 2035 as AI applications continue to scale across the global economy. During the press conference in Taipei, Tsao emphasized that while the industry faces "black swan" risks like Middle East conflicts, the primary focus for leaders like TSMC and Nvidia remains supply chain resilience and green energy procurement. TSMC is reportedly central to this growth, with AI revenues expected to maintain a 50% CAGR through the end of the decade. Analysts note that while raw material costs for helium and acids are rising, the diversification of sourcing to the U.S. and Australia has secured the near-term production capacity needed to meet these record-breaking sales targets.
Sources (11)
HQ-2020-00188-F - Final Letter and responsive documentTSMC 2024 Sustainability ReportNo chip supply shortage: SEMI - Taipei TimesTerry Tsao | SEMICommunity Bulletin Board Archives2023 KPMG Global Semiconductor Industry OutlookSIA_State-of-Industry-Report_2023_Final_072723.pdfAfter an Underwhelming 2023, the Semiconductor Industry Is Back on Course for Stellar Growth
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