Seoul: The global semiconductor market is projected to reach over US$1.6 trillion by 2026, significantly surpassing the forecast made earlier this year. This growth is driven by increased investment in artificial intelligence (AI) infrastructure, as detailed in a report released on Sunday.
According to Yonhap News Agency, the revised outlook comes at a time when there are calls from some sectors of the AI industry to decelerate development due to concerns over losing control of the technology. Notably, memory chips produced by Samsung Electronics Co. and SK hynix Inc. are anticipated to constitute more than half of the global semiconductor market. This is due to the soaring volume of data processed by AI systems, as highlighted by the Korea Eximbank's research center, which based its report on analysis by global market research firms, including TrendForce.
Previously, the global semiconductor market was expected to exceed $1 trillion by 2030. However, the forecast has been significantly revised upward as major U.S. and Chinese hyperscalers, operators of large-scale data centers, have rapidly increased their investment in AI infrastructure.
As of the end of last month, the prices of dynamic random access memory (DRAM) and NAND flash memory chips were $25 and $30.5, respectively. These prices reflect an increase of 4.4-fold and ninefold, respectively, from a year ago. Although memory chip prices are expected to stabilize next year, the global semiconductor market is predicted to continue its growth trajectory due to steady demand, potentially reaching about $2 trillion by 2030.
The report also indicates that big tech companies are pursuing long-term supply agreements with memory chipmakers such as Samsung Electronics and SK hynix. This strategy is expected to help stabilize the semiconductor industry compared to past fluctuations. With the continued investment by major tech firms in AI and the proliferation of AI services, the momentum of the memory chip market is unlikely to diminish in the near term, according to industry sources.
Moreover, employment in the chip industry has increased, with 174,000 workers in the first quarter of this year, up 15 percent from 152,000 in the first quarter of 2018, according to data from the Korean Statistical Information Service (KOSIS). The average monthly salary in the industry was 4.32 million won ($3,100) in the first half of this year, marking a 3.1 percent increase from the previous year. This wage growth is largely attributed to significantly higher bonuses at semiconductor companies.