UBS Analyst Predicts AI-Driven Semiconductor Upcycle Through 2026
At the UBS Greater China Conference 2026 in Shanghai, Jimmy Yu, a semiconductor analyst at UBS Securities, outlined a robust outlook for the global semiconductor industry. Driven by artificial intelligence, the sector is entering a new upcycle with stronger momentum than previous cycles. Yu projects the global market will exceed $1 trillion in 2026, representing over 40% year-on-year growth, and reach approximately $1.18 trillion by 2027. Memory chips are identified as a primary growth driver, potentially expanding by nearly 50% due to rising prices, while logic chips and foundry services also show resilient demand. The expansion of AI applications into financial services, enterprise sectors, and security is fueling infrastructure investment. Although the industry remains cyclical, indicators suggest the peak may be delayed until late 2027. In China, AI infrastructure development is boosting domestic demand for computing chips and equipment, offering significant opportunities for localization despite lagging advanced manufacturing capabilities. This structural shift supports sustained double-digit growth across various segments through 2027.
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UBS Analyst Predicts AI-Driven Semiconductor Upcycle Through 2026
At the UBS Greater China Conference 2026 in Shanghai, Jimmy Yu, a semiconductor analyst at UBS Securities, outlined a robust outlook for the global semiconductor industry. Driven by artificial intelligence, the sector is entering a new upcycle with stronger momentum than previous cycles. Yu projects the global market will exceed $1 trillion in 2026, representing over 40% year-on-year growth, and reach approximately $1.18 trillion by 2027. Memory chips are identified as a primary growth driver, potentially expanding by nearly 50% due to rising prices, while logic chips and foundry services also show resilient demand. The expansion of AI applications into financial services, enterprise sectors, and security is fueling infrastructure investment. Although the industry remains cyclical, indicators suggest the peak may be delayed until late 2027. In China, AI infrastructure development is boosting domestic demand for computing chips and equipment, offering significant opportunities for localization despite lagging advanced manufacturing capabilities. This structural shift supports sustained double-digit growth across various segments through 2027.
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