Chipmakers laughing all the way to the vault as memory prices go stratospheric
Gartner reckons $1.6 trillion year is just the start, and don't expect a bust anytime soon
Chipmakers are enjoying record profits as memory prices soar to unprecedented levels, according to a new report. Gartner predicts the semiconductor industry will generate $1.6 trillion in revenue this year, a significant increase from $809 billion in 2025. Memory chips are driving most of this growth, with DRAM and NAND revenue each expected to triple or quadruple.
Memory revenue is projected to surpass $1 trillion by 2027, up from $220 billion last year. The surge in memory prices is primarily due to the booming AI infrastructure sector, which is fueling demand for high-end servers and GPUs. Major manufacturers like Samsung, Micron, and SK Hynix are prioritizing production of these chips, leading to a shortage of mainstream memory types needed for PCs, smartphones, and other devices.
This has resulted in higher average unit prices for these products. Chipmakers have also secured long-term supply deals with major customers, further driving up prices. Gartner believes that AI infrastructure has fundamentally changed the dynamics of the memory market, creating a new phase of growth and redefining the industry's application mix.
Experts predict that the AI datacenter ecosystem will grow from 36.5% of semiconductor revenues in 2026 to over 53% by 2030, signaling a significant shift in semiconductor value creation and demand evolution. However, the higher prices are not expected to cool demand, as Gartner forecasts sustained high-margin memory product demand, including HBM.
Samsung has warned that the memory supply crunch will likely continue through 2028. Gartner projects semiconductor revenue to reach $1.9 trillion in 2027, a 20% increase from this year.
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