Omdia sees AI demand reshaping chip market growth

Omdia raised its 2026 semiconductor revenue forecast to 94.1% year-over-year (YoY), driven by rapid growth in DRAM and NAND as AI demand continues to exceed global supply. Memory ICs are expected to account for more than 50% of total semiconductor revenue in 2026, with shortages around high bandwidth memory, advanced packaging and leading-edge node capacity expected to persist until at least 2027.

HBM supply remains constrained by complex production and reliance on three suppliers able to manufacture at scale: SK Hynix, Samsung, and Micron. AI accelerators from NVIDIA, AMD, Intel, and Google require HBM stacks, while TSMC’s dedicated advanced packaging lines are running at full utilization. TSMC’s 2nm and 3nm nodes are largely booked by NVIDIA, AMD, Broadcom, and Apple, adding pressure as AI model computing requirements grow faster than foundry capacity.

Cost pressures are spreading to smartphones, PCs, consumer electronics, automotive and industrial markets as DRAM suppliers prioritize HBM and other higher-margin products. Products requiring 2.5D or 3D packaging must compete with AI GPUs, and Computing & Data Storage is projected to lead application markets, rising by more than 150% YoY in 2026 to approach $1 trillion.