Why Chips Will Matter More Than Apps in 2026

Simran Mishra

By 2026, chips will dominate technology as AI and hardware demands become the primary innovation drivers.

Running AI at scale will require massive compute power, making chips more critical than apps.

Specialized GPUs, custom ASICs, and high bandwidth memory will face heavy demand and possible shortages.

Custom chips reduce latency and energy use, giving tech companies a competitive edge in AI.

Semiconductor supply chains are now geopolitical tools, affecting national security and global trade.

AI chip demand is raising smartphone and device prices as memory is prioritized for AI centers.

Advancements like 2nm process nodes and 3D stacking will drive the next wave of hardware innovation.

Edge AI and on-device processors will make apps dependent on hardware for intelligence and speed.

Countries are investing heavily in domestic chip production to secure technological sovereignty.

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