LONDON--(BUSINESS WIRE)--Jul 30, 2026--
Omdia has raised its 2026 semiconductor revenue forecast to 94.1% year-over-year (YoY), driven by exceptional growth in DRAM and NAND as AI demand continues to outpace global supply. Memory ICs are now expected to account for more than 50% of total semiconductor revenue in 2026. AI demand has exceeded the industry’s current ability to produce and package chips, with bottlenecks across high bandwidth memory (HBM), advanced packaging, and node capacity expected to persist until at least 2027.
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AI demand strains HBM supply and advanced packaging capacity
HBM supply remains fundamentally constrained because production is significantly more complex than standard DRAM and relies on just three suppliers capable of manufacturing at scale: SK Hynix, Samsung, and Micron.
AI accelerators from companies like NVIDIA, AMD, Intel, and Google require HBM stacks, further intensifying demand. Advanced packaging has become another major bottleneck, with dedicated manufacturing lines at TSMC operating at full utilization. Capacity cannot expand quickly enough because of long lead times for specialized equipment while suppliers such as ASML and Tokyo Electron continue to face manufacturing constraints of their own.
Leading node capacity is under similar pressure. TSMC's 2nm and 3nm nodes are largely booked by companies including NVIDIA, AMD, Broadcom, and Apple. At the same time, computing requirements for AI models are growing far faster than foundry capacity can expand.
Memory pricing and component costs impact application segments
As semiconductor revenue growth becomes increasingly concentrated in AI-related applications, other markets are facing significant cost pressure. Smartphones, PCs, and consumer electronics are experiencing higher component costs, while automotive and industrial electronics markets must also compete with AI demand for packaging and memory ICs.
In memory ICs, DRAM suppliers are prioritizing HBM and other high-margin products, making commodity memory pricing and lead times increasingly volatile. In packaging, older and mid-range products are less directly affected, but products requiring 2.5D or 3D packaging must compete for the same capacity as AI GPUs and other high-priority chips. A similar trend is emerging in leading-edge node capacity where AI processors are being prioritized over PC and smartphone chips. As a result, CPUs and SOCs may face delays and higher average selling prices (ASPs) or remain on older process nodes for longer than expected, slowing improvements in performance and power efficiency.
Computing and data storage lead semiconductor revenue growth
Computing & Data Storage will lead all application markets in semiconductor revenue growth, rising by more than 150% YoY in 2026 to approach $1 trillion. This growth will be driven by strong demand from data center servers and other memory–intensive applications, alongside higher memory IC pricing.
Consumer electronics and wireless applications also present a relatively strong outlook for semiconductor revenue growth in 2026. Smartphone price increases began in the fourth quarter of 2025, and prices are now rising further, particularly in the premium tier, where healthier margins can better absorb inflated memory cost. This strategy is narrowing the price gap between mid-tier and premium models, encouraging consumers to trade up to higher-end devices.
Apple’s iPhone 18 and iPhone Fold, and Google’s Pixel 11 Pro Fold are all expected later this year, increasing semiconductor content through additional features and AI capabilities. Smart watches, fitness and wellness wearables, video game consoles and OLED TVs are also projected to see meaningful semiconductor revenue gains, supported by higher component costs and sustained market demand.
“From mid-2026 through early 2027, the semiconductor market will be defined by relentless AI demand. Capacity will remain constrained, advanced nodes heavily utilized, and memory and advanced packaging costs will continue to rise. Investment tied directly to AI infrastructure will drive record silicon consumption, while non-AI markets continue to face supply constraints.” said Myson Robles-Bruce, Senior Principal Analyst at Omdia.
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Greatest market contributors to semiconductor revenue growth in 2026
LOS ANGELES (AP) — The Rock & Roll Hall of Fame has inducted its 2026 class of 18 musical luminaries at the Peacock Theater in Los Angeles.
Artists become eligible for the hall 25 years after their first music release.
Here’s a look at this year's Rock Hall class, a few of their defining songs and who inducted them.
The 75-year-old English singer, songwriter and drummer is already in the hall as a member of Genesis and got in again for a solo career that brought some of the biggest hits of the 1980s. Key songs: “Against All Odds,” “One More Night,” “You'll Be in My Heart.”
Collins was inducted by Blink-182 drummer Travis Barker, who also played Collins' famous drum fill as Cynthia Erivo sang “In the Air Tonight” in tribute.
Wu-Tang Clan is an epic hip-hop coalition from Staten Island — made up of RZA, GZA, Method Man, Raekwon, Ghostface Killah, Inspectah Deck, U-God, Masta Killa and previously, the late Ol’ Dirty Bastard. They’ve been hip-hop innovators since their 1993 debut album, “Enter the Wu-Tang.” Key songs: “C.R.E.A.M.,” “Protect Ya Neck,” “Wu-Tang Clan Ain’t Nuthing Ta F’ Wit.”
The group was inducted by Chris Rock. The many members performed a medley of their hits, including "C.R.E.A.M." and late member Ol' Dirty Bastard's “Shimmy Shimmy Ya,” backed by a big jazz band.
The 56-year-old New Jersey-born Queen Latifah achieved unprecedented success for a female rapper, becoming a star at 19 with the release of her 1989 album “All Hail the Queen” and the single “Ladies First.” Key songs: “Ladies First,” “When You’re Good to Mama.”
She enters the hall as a recipient of the Early Influence Award.
She was inducted by Megan Thee Stallion and accepted in person. She and fellow nominee MC Lyte jointly performed a medley of their hits, including “U.N.I.T.Y.”
The 70-year-old punk-coded English rock singer had major hits through the 1980s. He was inducted along with his longtime guitarist Steve Stevens. Key songs: “Dancing With Myself,” “White Wedding,” “Eyes Without a Face.”
Inducted by Gwen Stefani and Tony Kanal of No Doubt, Idol played “White Wedding” with Stevens and sang “Eyes Without a Face” in duet with Stefani.
Vandross was an R&B singer whose velvet-voiced love songs made him a definitive voice of the 1980s and ’90s. Vandross died in 2005. Key songs: “Never Too Much,” “Dance With My Father,” “I’d Rather.”
He was inducted by Oprah Winfrey. Usher sang a medley of his songs, including “Here and Now” and “So Amazing."
The 63-year-old producer was instrumental to the popularization of hip-hop in the 1980s through his work with the Beastie Boys, LL Cool J, Run DMC and his Def Jam Recordings label. Rubin went on to work in rock and country, producing Johnny Cash’s haunting final recordings in the 1990s.
He was inducted by Neil Young and got into the hall as a recipient of the Musical Excellence Award.
Rubin gave a one-sentence acceptance speech: “You can't kill rock ‘n’ roll.” The Red Hot Chili Peppers played a song he produced, “Give it Away,” in tribute while sporting long fake white beards in tribute to Rubin's look.
The scorching rock band led the new wave of British heavy metal and became the quintessential metal band of the 1980s. Key songs: “The Trooper,” “Fear of the Dark,” “Run to the Hills.”
The group was inducted by Jack Black. A supergroup featuring members of Metallica, Rage Against the Machine and St. Vincent played “The Trooper.”
The Brit-pop lords of the 1990s are led by famously feuding brothers Noel and Liam Gallagher. Key Songs: “Wonderwall,” “Live Forever,” “Don’t Look Back in Anger.” They did not appear at the ceremony.
The band was inducted by actor Bob Odenkirk. Singer-songwriter Stephen Wilson Jr. played an acoustic rendition of “Wonderwall.”
The two British rock bands got a rare joint induction that makes sense given their members and circumstances. Joy Division was a dark and seminal post-punk band formed in 1976. When their charismatic lead singer, Ian Curtis, died in 1980, the remaining members formed New Order. Key songs: “Love Will Tear Us Apart,” “Blue Monday,” “Bizarre Love Triangle.”
Inducted by Trent Reznor of Nine Inch Nails. Bassist from both bands Peter Hook, the only member in attendance, played Joy Division’s “Love Will Tear Us Apart” and New Order’s “Bizarre Love Triangle” with the Deftones and Chvrches singer Lauren Mayberry.
A trailblazing Brooklyn rapper in the late 1980s, MC Lyte became the first female rapper to release a full solo album, “Lyte as a Rock.” Her hard-edged rhymes brought a political consciousness that was growing in hip-hop at the time. Key songs: “Keep on Keepin’ On,” “Cold Rock a Party,” “Ruffneck.”
She entered the hall as a recipient of the Early Influence Award and was inducted by rapper Remy Ma. She accepted the honor in person. Her medley with Queen Latifah included her “Ruffneck.”
Sade is a British band most prominent in the 1980s that blended jazz, smooth-and-sultry R&B and sophisti-pop, led by a Nigerian-born singer of the same name. Key songs: “Smooth Operator,” “No Ordinary Love,” “Like a Tattoo,” “Kiss of Life.” She did not appear.
Sade was inducted by singer Andra Day. Singer Sienna Spiro sang their biggest hit, “Smooth Operator.”
Parsons was arguably the most important figure in rock’s turn toward country in the late 1960s and early ’70s. Parsons was a member of the Byrds, co-founded the Flying Burrito Brothers and became a solo artist with Emmylou Harris as his duet partner and backup singer. He died in 1973. He entered the hall as a recipient of the Early Influence Award. Key songs: “Hickory Wind,” “Love Hurts,” “Return of the Grievous Angel.”
Parsons was inducted via video montage. Parsons had a separate tribute on Wednesday at the Troubadour club that featured Harris, Sheryl Crow and Elvis Costello.
The Nigerian saxophonist, bandleader, progenitor and activist was born in 1938 in colonial Nigeria. His music career, which spanned the late 1950s up to the 1990s, was a signature blend of high-octane horn, jazz, and funk with Yoruba rhythms. Kútì, who died in 1997, is the first African-born solo artist to enter the Rock Hall. He was inducted via video tribute and was a recipient of the Early Influence Award. Key songs: “Water No Get Enemy,” “Zombie,” “Let’s Start.”
The queen of salsa and innovator and spreader of Afro-Cuban sounds and one of the most popular Latin artists of the 20th century, the Havana-born singer Cruz is the first member of the Hall of Fame who sang primarily in Spanish. She died in 2003. Key songs: “Vasos Vacíos,” “La Vida Es Un Carnaval,” “El Último Adiós.” She was inducted via video tribute and entered the hall as a recipient of the Early Influence Award.
Miller was known for producing rock acts of the 1960s and 1970s, including the Rolling Stones albums considered to represent their artistic peak: “Beggars Banquet,” “Let It Bleed,” “Sticky Fingers” and “Exile on Main St.” He died in 1994.
He was inducted via video tribute and received the Musical Excellence Award.
The late songwriter and producer entered the hall for helping to define the Philadelphia soul sound of the 1970s, penning hits for the Stylistics, Teddy Pendergrass and the Spinners. Creed died in 1986 at 37.
She also gets into the hall as a recipient of the Musical Excellence Award and was also inducted with a video tribute.
He was honored for bringing the Beatles, Elvis Presley, Buddy Holly, James Brown and the Doors to American living rooms, and for consistently featuring Black artists despite network pressure to keep television segregated. He died in 1974.
Sullivan was inducted via video montage and got into the hall as a recipient of the Ahmet Ertegun Award for non-performers who shaped rock and roll and youth culture.
Mardin gets the honor for his decades of work as a producer for Atlantic Records for his work in helping create the soul sound of Aretha Franklin and his production of Rock Hall of Famers including Hall & Oates, the Bee Gees, Chaka Khan, Diana Ross and Cher. Mardin died in 2006.
He gets into the hall as a recipient of the Musical Excellence Award.
The Wu-Tang Clan performs during the Rock and Roll Hall of Fame Induction Ceremony on Saturday, Nov. 14, 2026, at the Peacock Theater in Los Angeles. (AP Photo/Chris Pizzello)
MC Lyte, left, and Queen Latifah perform during the Rock and Roll Hall of Fame Induction Ceremony on Saturday, Nov. 14, 2026, at the Peacock Theater in Los Angeles. (AP Photo/Chris Pizzello)
Sienna Spiro performs during the Rock and Roll Hall of Fame Induction Ceremony on Saturday, Nov. 14, 2026, at the Peacock Theater in Los Angeles. (AP Photo/Chris Pizzello)
Usher performs during the Rock and Roll Hall of Fame Induction Ceremony on Saturday, Nov. 14, 2026, at the Peacock Theater in Los Angeles. (AP Photo/Chris Pizzello)
MC Lyte accepts the award for musical excellence during the Rock and Roll Hall of Fame Induction Ceremony on Saturday, Nov. 14, 2026, at the Peacock Theater in Los Angeles. (AP Photo/Chris Pizzello)
