According to the latest data released by the Semiconductor Industry Association (SIA), global semiconductor sales reached $145 billion in Q2 2026, up 15% YoY and 5.3% QoQ. This marks the third consecutive quarter of positive growth, indicating that the semiconductor industry, after its cyclical adjustment in 2025, has fully entered an upward cycle. AI chips and automotive chips were the main drivers, contributing about 30% and 20% of the growth, respectively.
Surging AI Chip Demand
As generative AI applications rapidly penetrate into edge and inference scenarios, AI chip demand has exploded. In Q2, sales of AI accelerator chips such as GPUs and NPUs surged 45% YoY to $32 billion. Data center revenues of leading companies like Nvidia and AMD hit record highs, while small and medium-sized AI chip design companies also benefited from customized demand, with orders skyrocketing. Meanwhile, shipments of supporting chips such as HBM (High Bandwidth Memory) and CXL (Compute Express Link) doubled, further driving synergistic growth in logic and memory chips.
Optimized Supply-Demand Structure for Automotive Chips
In automotive chips, as the global penetration rate of new energy vehicles exceeded 40%, demand for automotive-grade MCUs, power semiconductors, and sensor chips remained strong. Q2 automotive chip sales grew 18% YoY to $21 billion. Notably, the previous chip shortage in the automotive industry has largely eased, and supply and demand are now balanced. Manufacturers such as Renesas and NXP maintained capacity utilization above 95% and began accelerating migration to advanced nodes below 22nm to improve energy efficiency and integration.
Wafer Foundry Capacity Utilization Rebounds to Over 90%
In the foundry sector, major foundries such as TSMC, Samsung, and SMIC saw average capacity utilization of 92% in Q2, up 5 percentage points from the previous quarter. Capacity utilization for advanced nodes (7nm and below) was nearly full, while mature nodes (28nm-65nm) also showed notable improvement. This was mainly driven by strong orders for AI and automotive chips, as well as a moderate recovery in IoT and communication infrastructure. In terms of foundry pricing, although some mature nodes still have room for negotiation, advanced nodes are in short supply, raising expectations for price increases.
Memory Chip Prices Stabilize and Recover
The memory chip market also saw positive signals. In Q2, DRAM and NAND Flash sales grew 8% and 10% QoQ respectively, with average prices stabilizing. DDR5 memory prices rose 3% QoQ due to increased demand from servers and AI accelerators, while NAND Flash wafer prices also edged up as PC and smartphone makers restocked. Memory giants such as Samsung, SK Hynix, and Micron all indicated that with growing demand for high-bandwidth memory from AI data centers and edge AI devices, memory chip prices are expected to continue rising in the second half of the year.
Regional Market Performance Diverges
By region, the Americas remained the largest semiconductor market, with Q2 sales up 22% YoY to $51 billion, driven by AI and cloud infrastructure investments. Asia-Pacific (excluding Japan and Singapore) saw sales grow 14% YoY, with China growing only 8% due to weak consumer electronics demand, but India and Southeast Asia grew over 20% due to electronics manufacturing relocation. Europe and the Middle East saw sales up 10% YoY, with automotive chips contributing significantly. Japan's market, affected by yen depreciation, saw U.S. dollar-denominated sales up 12% YoY, but local demand was stable.
Industry Outlook: Growth Expected to Accelerate in H2
Looking ahead to H2, SEMI expects global semiconductor sales to exceed $580 billion for the full year, up 12.5% YoY. AI chips will remain the biggest growth engine, while automotive electronics, industrial automation, and data center infrastructure will continue to drive demand. However, geopolitical risks and export control policy uncertainties remain concerns. In addition, the increasing penetration of third-generation semiconductor materials such as silicon carbide (SiC) and gallium nitride (GaN) will bring new growth opportunities.
Overall, the semiconductor industry has emerged from the cyclical trough and entered a new growth phase. For companies in Singapore's semiconductor supply chain, seizing opportunities in AI and automotive chips while strengthening their positions in advanced packaging, EDA tools, and materials will help them gain a competitive edge globally. NewCore Semiconductor Finance will continue to monitor industry trends, providing you with the latest market insights and decision-making references.
