Semiconductor Industry Poised for Massive Growth as AI Fuels Demand

Australia is seeking to build a domestic semiconductor sector, with US‑Australian firm Lumina Corp developing integrated‑photonics technology to address the "quantum wiring" challenge in quantum computing. Co‑founders Dr George Li and Dr Keith Powell say their thin‑film lithium‑tantalate platform could replace bulky 3‑D optical setups with a 2‑D solution, and the company reported cash‑positive results in its first year.

Globally, the semiconductor market is projected to reach about $1.65 trillion in 2026, driven by surging AI infrastructure, high‑performance computing and advanced memory demand. Sales in the first half of 2026 hit $702 billion, a 102 % year‑over‑year increase, with memory chips soaring 305 % and logic chips up 45 %. SIA President John Neuffer highlighted strong demand across the Americas, Asia‑Pacific and China, underscoring the sector’s critical role in next‑generation technology and economic competitiveness.