Semiconductor Revenue Surges 31 Percent to $425 Billion in 2Q26

Global semiconductor revenue reached a new record of $425 billion in the second quarter of 2026, marking an unprecedented 31.4% quarter-over-quarter (QoQ) growth rate, according to Omdia. Persistent demand for AI hardware and strong memory pricing remained the primary drivers, bringing total semiconductor revenue for the first half of 2026 to $752 billion.

The 31.4% QoQ increase surpassed the previous record set just a quarter earlier. Omdia’s historical data shows that sequential growth above 10% is rare, occurring in only 10 out of the last 97 quarters. However, the market has now recorded four consecutive quarters of double-digit sequential growth, with the third quarter of 2026 expected to maintain this momentum. While memory remains the core driver, other semiconductor segments are also growing well above seasonal averages.

The memory market, specifically DRAM and NAND flash, is experiencing unprecedented expansion as AI requirements shift production priorities for major suppliers. These shifts in production are tightening the supply-demand balance, leading to higher average selling prices. In the second quarter of 2026, memory ICs alone accounted for more than half of all semiconductor revenue, with DRAM, NAND, and NOR chips each recording record-breaking sequential growth.

Even excluding the memory sector, the broader semiconductor market performed robustly in 2Q26. Non-memory semiconductor revenue grew by over 10% QoQ, far exceeding the typical seasonal growth rate of approximately 3%. Other components are also benefiting from their integration into AI infrastructure; for example, microprocessor (MPU) revenue grew by 16% in the second quarter, well above the historical seasonal average of 1%.

With semiconductor revenue for the first half of 2026 already exceeding $750 billion, the industry has already surpassed the full-year totals of almost every previous year except 2025. Omdia projects that revenue will exceed $500 billion in the third quarter alone, which would bring the nine-month total for 2026 to over $1.25 trillion—a figure 50% higher than the total revenue for the entire year of 2025.