Artificial Intelligence (AI) Chip Market Size Worth USD 1.10 Trillion By 2035 As High-Performance And Energy-Efficient Chips Gain Traction

2026-02-05 07:48:01

(MENAFN- GlobeNewsWire - Nasdaq) The global artificial intelligence (AI) chip market size is expected to be worth USD 1.10 trillion by 2035, up from USD 121.73 billion in 2026, with a robust CAGR of 27.88% from 2026 to 2035. The growth in Edge AI and the transition towards ASICs drive market growth.

Ottawa, Feb. 05, 2026 (GLOBE NEWSWIRE) -- According to Precedence Research, the global artificial intelligence chip market size

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Artificial Intelligence (AI) Chip Market Key Points

North America dominated the global market with the largest revenue share of 44% in 2025.
By technology, the machine learning segment led the global market in 2025.
By chip type, the CPU segment emerged as the leading contributor to market revenue in 2025.
By processing type, the edge segment accounted for the largest revenue share of 75% in 2025.
By function, the inference segment is experiencing significant growth.
By end users, the BFSI segment held the maximum revenue share and is expected to sustain growth from 2026 to 2035.

What is an Artificial Intelligence (AI) Chip?

The artificial intelligence increasing autonomous vehicle use

An AI Chip is a specialized processor that is developed to manage complex artificial intelligence tasks. The various types of AI chips are ASICs, GPUs, and Field-Programmable Gate Arrays. They offer high memory bandwidth, parallel processing, and specialized architecture. An AI chip offers benefits like superior performance, low total cost of ownership, energy efficiency, high scalability, and reduced latency. It is widely used in applications like data centers edge computing smartphones

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Government Initiatives for Artificial Intelligence (AI) Chip

IndiaAI Compute Pillar: Establishes a national AI computing infrastructure with over 10,000 GPUs to provide affordable high-performance computing to startups and researchers.
Design Linked Incentive (DLI) Scheme (India): Offers financial incentives and design infrastructure support to domestic startups for developing AI-specific semiconductor designs and intellectual property.
CHIPS and Science Act (USA): Provides roughly $52.7 billion in subsidies to revitalize domestic semiconductor manufacturing and accelerate the research and development of next-generation AI hardware.
European Chips Act: Mobilizes €43 billion in public and private investments to double the EU's global market share in semiconductors
Future Chips Program (South Korea): Invests heavily in the development of low-power AI semiconductors and "processing-in-memory" (PIM) chips to dominate the global high-bandwidth memory market.

Key Trends of the Artificial Intelligence (AI) Chip Market

Shift toward Domain-Specific Architecture: The industry is moving away from general-purpose chips like traditional CPUs to custom-designed Application-Specific Integrated Circuits (ASICs) and other specialized accelerators that are optimized for specific AI workloads like natural language processing
Increasing Demand for Edge AI Processing: There is a rapid growth in the need to process AI tasks locally on devices such as smartphones, autonomous vehicles, and IoT sensors

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Artificial Intelligence (AI) Chip Market Opportunity

Expanding Autonomous Systems Surges Demand for AI Chip

The increasing use of autonomous systems across various industrial applications and the transition to software-defined vehicles increase demand for AI chips. The growing development of self-driving cars increasing number of autonomous mobile robots advanced driver assistance systems

The growing development of autonomous drones and the focus on real-time data processing increase the adoption of AI chips. The popularity of V2X communication and the focus on lowering traffic congestion increase demand for AI chips. The increasing use of autonomous systems to analyze crop health and the rising utilization of autonomous robots in healthcare infrastructure increases adoption of AI chips. The expanding autonomous systems create an opportunity for the growth of the AI chip market.

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Artificial Intelligence (AI) Chip Market Report Coverage

Report Metrics	Details
Market Size in 2025	USD 94.44 Billion
Market Size in 2026	USD 121.73 Billion
Market Size by 2035	USD 1,104.68 Billion
Growth Rate from 2026 to 2035	CAGR of 27.88%
Largest Market	North America
Fastest Growing Market	Europe
Base Year	2025
Forecast Period	2026 to 2035
Segments Covered	Technology, Chip Type, Processing Type, Function, End-Users and Region
Regions Covered	North America, Europe, Asia-Pacific, Latin America and Middle East & Africa

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Artificial Intelligence (AI) Chip Market Regional Insights

How North America Dominates the Artificial Intelligence (AI) Chip Market?

North America dominated the market. The presence of hyperscale data centers

How Big is the Artificial Intelligence (AI) Chip Market in 2026?

The U.S. artificial intelligence (AI) chip market size is estimated at USD 37.49 billion in 2026 and is projected to reach around USD 347.32 billion by 2035, rising at a CAGR of 29.11% from 2026 to 2035.

U.S. Artificial Intelligence (AI) Chip Market Trends

The U.S. market is rapidly expanding as demand surges for data centers, cloud computing, and generative AI applications across industries. Advanced GPUs and custom accelerators dominate the market, with companies increasingly designing specialized chips to improve performance and energy efficiency for AI workloads.

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Why is Asia Pacific experiencing the Fastest Growth in the Artificial Intelligence (AI) Chip Industry?

Asia Pacific is experiencing the fastest growth in the market during the forecast period. The government's backing for the production of AI chips domestically and the expansion of digital infrastructure help market expansion. The increased adoption of AI in industrial applications and the presence of skilled labor increase the production of AI chips. The expanding real-time data processing and the huge data center investment increase demand for AI chips, supporting the overall market growth.

China Artificial Intelligence (AI) Chip Market Trends

China's market is experiencing rapid growth driven by strong domestic demand, policy support, and significant R&D investment, with market size projected to continue expanding rapidly through 2025 and beyond. Domestic manufacturers such as Huawei, Alibaba, Cambricon, and other startups are advancing their own designs and gaining market share as China pushes for semiconductor self-sufficiency amid geopolitical tensions and export controls.

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Artificial Intelligence (AI) Chip Market Segmentation

Technology Insights

Why Machine Learning Segment Dominates the Artificial Intelligence (AI) Chip Market?

The machine learning segment dominated the market. The expansion of big data and the rapid growth in cloud computing increase demand for machine learning

Chip Type Insights

How did the CPU Segment hold the Largest Share in the Artificial Intelligence (AI) Chip Industry?

The CPU segment held the largest revenue share in the artificial intelligence (AI) chip industry. The increased need for data preprocessing and the presence of massive datasets increases requires CPU, which increases demand for AI chips. The growing use of CPUs in personal computers and data centers helps market expansion. The cost-effectiveness, Ease of Use, and the high availability of CPU drives the overall market growth.

Processing Type Insights

What made Edge Segment Dominate the Artificial Intelligence (AI) Chip Market?

The edge segment dominated the market. The growth in autonomous driving applications and the explosion of IoT devices increase demand for edge processing. The increasing use of smart home appliances

Function Insights

How did the Inference Segment hold the Largest Share in the Artificial Intelligence (AI) Chip Industry?

The inference segment held the largest revenue share in the artificial intelligence (AI) chip industry. The growing demand for generative AI and the increasing use of high-end GPUs increase the demand for inference chips. The increasing use of privacy-focused processing and the focus on lowering the consumption of power increase demand for inference chips. The development of high-performance hardware and expanding edge AI requires inference chips, driving the overall market growth.

End-Users Insights

Which End-Users Dominated the Artificial Intelligence (AI) Chip Market?

The BFSI segment dominated the market. The rising volume of transactions and the focus on fraud prevention increase demand for AI chips. The increasing need for enhancing the operational efficiency of the financial sector and the growing demand for personalised financial advice increase the demand for AI chips. The growth in automated auditing and the push for digital banking increases the adoption of AI chips, driving the overall market growth.

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Top Companies in the Artificial Intelligence (AI) Chip Market & Their Offerings

NVIDIA Corporation: Offers high-performance GPUs and specialized architectures like Blackwell and Hopper that serve as the industry standard for large-scale AI training and inference.
General Vision Inc.: Specializes in low-power neuromorphic chips, such as the NeuroMem series, designed for real-time pattern recognition and edge-based sensor fusion.
Amazon Web Services: Develops custom silicon including Trainium for cost-efficient model training and Inferentia for high-throughput, low-latency AI inference in the cloud.
Google Inc.: Provides proprietary Tensor Processing Units (TPUs), which are application-specific integrated circuits (ASICs) optimized for accelerating large-scale machine learning workloads.
Microsoft Corporation: Recently launched the Maia series of AI accelerators, custom chips designed to optimize performance for internal AI services and Azure cloud workloads.
Advanced Micro Devices Inc.: Offers Instinct accelerators for data centers and Ryzen processors with integrated AI engines to power both enterprise and consumer-level AI applications.

Recent Developments

In January 2026, Hyundai launched large-scale manufacturing of AI chips, Edge Brain for autonomous machines. The AI chip's power consumption is less than 5 watts and performs complex operations. (Source: )

In October 2025, Qualcomm launched AI inference-optimized solutions AI 250 and AI200 for data centers. The solution consists of PCIe, confidential computing, direct liquid cooling, 160kW rack-level power consumption, and confidential computing. The solution offers security and supports hardware utilization. (Source: )

In November 2025, Qualcomm launched a mobile AI chip, Snapdragon 8 Gen 5, for mid-range smartphones. The AI chip offers a premium experience and 36% better performance. An AI chip uses an X80 modem and enhances the performance of 5G home internet. (Source: )

Segments Covered in the Report

By Technology

Machine Learning
Natural Language Processing
Context-aware Computing
Computer Vision
Predictive Analysis

By Chip Type

GPU
ASIA
FPGA
CPU
Others

By Processing Type

Edge
Cloud

By Function

Training
Inference

By End-Users

Manufacturing
Healthcare
Automotive
Agriculture
Retail
Human Resources
Marketing
BFSI
Government
Others

By Region

North America

U.S.
Canada
Mexico
Rest of North America

South America

Brazil
Argentina
Rest of South America

Europe

Western Europe

Germany
Italy
France
Netherlands
Spain
Portugal
Belgium
Ireland
UK
Iceland
Switzerland
Poland
Rest of Western Europe

Eastern Europe

Austria
Russia & Belarus
Türkiye
Albania
Rest of Eastern Europe

Asia Pacific

China
Taiwan
India
Japan
Australia and New Zealand,
ASEAN Countries (Singapore, Malaysia)
South Korea
Rest of APAC

MEA

GCC Countries

Saudi Arabia
United Arab Emirates (UAE)
Qatar
Kuwait
Oman
Bahrain

South Africa
Egypt
Rest of MEA

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