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Semiconductor industry on track to hit $1 trillion revenue mark
07 Feb 2026

The semiconductor industry is on track to achieve a historic milestone of $1 trillion in revenue this year.

This unprecedented growth is largely driven by the rise of artificial intelligence (AI) and the increasing use of computer chips across different sectors.

The Semiconductor Industry Association (SIA) reported that total industry sales reached $791.7 billion in 2022, with a projected 26% increase for 2023.

Rapid growth driven by AI and data center demand
Market expansion

The semiconductor industry is hitting the $1 trillion mark much sooner than expected.

SIA CEO John Neuffer said, "When we have growth in our sector, it means exponential benefits in other sectors." He added that their technology is essential for nearly every strategic industry.

This rapid growth has been largely driven by the skyrocketing demand for new data center computers, benefiting companies like NVIDIA Corp. and Micron Technology Inc.

Logic and memory chip sales soar
Revenue surge

Revenue from logic chips, often referred to as device brains, jumped 40% to $301.9 billion in 2025.

Meanwhile, sales of memory semiconductors that enable data storage and management on computers grew by a whopping 35% to $223.1 billion during the same period.

The chip market will continue its typical boom-and-bust cycles but the long-term upward trend is clearly established, Neuffer said.

US-China trade tensions and the way forward
Trade dynamics

Despite US-China trade tensions casting a shadow over the industry, there are signs of improvement in their relationship.

Neuffer emphasized the need for more state support for research and development and immigration reform to attract and retain overseas talent.

These measures could ensure long-term growth for the US chip industry.