AI Chip Market Outlook:
AI Chip Market size was valued at USD 95.4 billion in 2025 and is projected to reach USD 930.6 billion by the end of 2035, rising at a CAGR of 28.8% during the forecast period, i.e., 2026-2035. In 2026, the industry size of AI chip is estimated at USD 122.8 billion.
The artificial intelligence (AI) chip market is poised for exceptional growth over the forecasted years as artificial intelligence continues to transform industries worldwide. Similarly, the heightened demand for AI-based applications in data centers, edge devices, autonomous systems, and robotics is continuously fueling innovation in high-performance computing and specialized AI accelerators. In this regard, the Biden-Harris Administration in February 2024 announced more than USD 5 billion in CHIPS R&D investments, which includes the National Semiconductor Technology Center as part of the USD 11 billion R&D program under the CHIPS and Science Act. It also mentioned that these funds aim to accelerate semiconductor innovation, strengthen the workforce, and foster public-private collaboration across the U.S. semiconductor ecosystem. In addition, the initiative complements the USD 39 billion in manufacturing incentives, supporting advanced semiconductor research, packaging, metrology, and the CHIPS Manufacturing U.S. Institute.
Furthermore, the National Institute of Standards and Technology in October 2024 announced a federal commitment of up to USD 100 million over a span of five years for AI-powered autonomous experimentation in sustainable semiconductor materials, supporting industry-university collaborations. Besides, this initiative aims to accelerate the discovery, design, and deployment of new materials and processes, improve manufacturing efficiency, reduce environmental impact, and expand the U.S. semiconductor R&D workforce. It also mentioned that this AI/AE combines automated laboratory tools, data analysis software, and machine learning to optimize materials development for next-generation microelectronics, hence positively impacting the AI chip market growth.
