WASHINGTON, DC -- Semiconductors account for more than 95% of the content value in a leading AI server rack and represent more than half of the capital expenditures required to build and operate AI data centers, according to a new report released by the Semiconductor Industry Association (SIA) and Deloitte.

The report, Powering AI: The Semiconductor Ecosystem at the Foundation of Data Centers, examines the role of chips across AI infrastructure through a virtual teardown of a modern AI server rack.

According to the study, AI depends on the full semiconductor stack, including logic, memory, analog and foundational chips. The report also projects annual revenue from semiconductors deployed in AI data centers could exceed $1.2 trillion by 2028, representing nearly tenfold growth over the past four years and surpassing total global semiconductor sales across all end markets in 2025 by more than 50%.

The findings come as policymakers pursue initiatives aimed at strengthening AI and semiconductor leadership. SIA President and CEO John Neuffer said the future of AI will depend on the full range of semiconductor technologies and emphasized the importance of policies that support global market access and U.S. competitiveness.

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