The World Semiconductor Trade Statistics (WSTS) recently raised its global semiconductor market forecast: a 22.5% increase in 2025 and 26.3% in 2026, reaching $975 billion, nearing the $1 trillion mark.
Despite this, major chip companies are showing restraint. TSMC is exiting GaN foundry business, NXP is closing its ECHO GaN fab, Micron is leaving the consumer storage market, SK Hynix is shutting down its image sensor division, and Wingtech is divesting its ODM operations. Companies are concentrating on high-return, core segments such as AI servers, data centers, and high-performance computing.
Analysts cite four drivers for these exits: structural market decline, intensified competition, divergent technology paths, and capital expenditure pressures. Exiting low-return segments is a strategic recalibration rather than retreat. Logic and memory chips are projected to grow over 30%, driven by AI and data center demand, heralding a new cycle of structural growth.
