SpecialtyNetworkSllc – The semiconductor industry is entering an unprecedented era of growth. The surge comes from rising AI workloads and rapid adoption of electric vehicles (EVs). These forces are reshaping global demand and triggering a historic wave of new investments in chipmaking.
According to PwC’s Semiconductor & Beyond 2026 report, fabrication spending is set to exceed US$1.5 trillion between 2024 and 2030. This number equals the industry’s total investment over the last 20 years. It signals how transformative the next decade could be.
The momentum is clear. Data from SEMI shows that 18 new fabs will start construction in 2025. Most are expected to begin production by 2026 or 2027.
Governments play a major role in this expansion. The US CHIPS Act alone drives over US$630 billion in semiconductor supply chain projects across 28 states. Companies are also announcing record investments.
For example:
Glenn Burm, PwC’s Global Semiconductors Leader, explained:
“The industry is undergoing a rapid transformation, driven by AI, geopolitical shifts, and government investments.”
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AI technology is the biggest driver of demand shifts. PwC predicts the global server market will pass US$300 billion by 2030. Expanding AI workloads fuel this growth, leading to a surge in data centers.
The server and network segment is on track to become the largest semiconductor market by 2030. AI accelerators already account for nearly 50% of revenue in this area, a dramatic rise from just a few years ago.
Chip giants like Nvidia and AMD face growing competition. Cloud providers such as Amazon, Google, and Microsoft are now building their own custom AI accelerators. These chips, designed specifically for their data centers, improve efficiency and cut costs.
At the same time, demand for high-bandwidth memory (HBM) is soaring. Industries need faster, more capable chips to power machine learning applications.
The automotive industry is now the second-fastest-growing market for semiconductors. PwC projects a 10.7% annual growth rate through 2030.
This boom comes from the rise of EVs and autonomous vehicles. PwC estimates EVs and hybrids will make up 50% of global vehicle sales by 2030. Cars are evolving into computers on wheels, requiring more advanced chips.
New materials are also gaining ground. Silicon carbide (SiC) and gallium nitride (GaN) are replacing traditional silicon in EV power systems. These materials improve efficiency, power density, and charging speed. By 2030, they will likely power over 60% of automotive semiconductors, compared to just 23% today.
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AI and EVs dominate the spotlight, but consumer electronics remain a major growth engine. PwC forecasts:
These growth areas show how semiconductors will continue to shape daily life, from smart homes to immersive virtual experiences.
The semiconductor industry has reached a critical inflection point. AI, EVs, government support, and new materials are converging to drive innovation at scale. By 2030, chips will power not only digital transformation but also transportation, consumer tech, and global infrastructure.
Once seen as cyclical, semiconductors are becoming the backbone of global innovation. The next decade promises unmatched opportunities—and the industry is racing to meet them.
