Semiconductor industry enters unprecedented ‘giga cycle’, says report — scale of artificial intelligence is rewriting compute, memory, networking, and storage economics all at once

The semiconductor industry is experiencing an unprecedented "giga cycle" driven by the scale of artificial intelligence (AI) demand, which is reshaping the economics of compute, memory, networking, and storage. Forecasts indicate that the semiconductor market could surpass the trillion-dollar mark by 2028 or 2029, with AI playing a significant role in this growth. Companies like AMD and Nvidia are raising long-term expectations, with projections of a $1 trillion AI hardware market by 2030. The AI infrastructure opportunity is estimated to be between $3 trillion to $4 trillion in the coming years, leading to significant growth in data-processing silicon and AI accelerators. This shift is also driving increased demand for custom silicon, memory, and packaging technologies.