By Sean Mitchell
Publication Date: 2025-11-20 16:30:00
The IoT semiconductor market is entering a pivotal phase where edge AI, open chip architectures and improved security will shape the industry in 2026. Analysts point to a shift away from data center innovation, with next-generation chips designed for IoT devices expected to dominate growth.
Edge AI mainstream
Edge AI, once a specialty feature, is expected to become a standard part of sensors, modules and gateways. Neural Processing Units (NPUs) are being integrated into popular designs, enabling local data processing rather than relying on cloud-based reasoning. This shift delivers latency, privacy, and network bandwidth benefits and improves a wide range of IoT deployments.
“By 2026, IoT semiconductors will reach a clear tipping point as edge AI moves from a niche feature to a standard feature in many sensors, modules and gateways. Chiplet-based and RISC-V-based designs, supported by AI-enabled design tools, will give OEMs more flexibility to update devices…