According to the latest data from the World Semiconductor Trade Statistics (WSTS), the global semiconductor market reached $162B in Q2 2026, a YoY increase of 12.3% and QoQ growth of 4.1%, setting a single-quarter record. This achievement was primarily driven by sustained strong demand for AI chips and steady recovery of automotive electronics chips. Industry experts believe the semiconductor industry is entering a new upward cycle, but geopolitical uncertainty remains a potential risk.
AI Chips: Computing Race Drives Growth
AI chips continued the explosive trend since 2025. GPU vendors led by Nvidia and AMD saw shipments increase over 25% YoY, with the H200 and subsequent models for large model training in short supply. Specialized chips like Google TPU and Apple Neural Engine are also accelerating penetration in cloud and edge. The WSTS report noted that AI-related logic chip sales reached about $52B in Q2, accounting for 32% of the total semiconductor market. Cloud Service Providers (CSP) capital expenditure is expected to exceed $200B for the full year, with nearly half invested in AI infrastructure.
Automotive Chips: Dual Drivers of Electrification and Intelligence
After an inventory correction in 2024, the automotive semiconductor market rebounded in H2 2025. In Q2 2026, automotive chip sales reached $13.5B, up 9.7% YoY. Power semiconductors (e.g., IGBT, SiC MOSFET) benefited from rising EV penetration; EV new car sales in major markets like China, Europe, and North America exceeded 30%. Meanwhile, demand for smart cockpit and autonomous driving chips was strong, with Qualcomm Snapdragon Ride Flex and Mobileye EyeQ series shipments growing 12% QoQ. NXP Semiconductors reported orders from Chinese automakers have been scheduled through 2027.
Memory Chips: HBM Leads, DRAM Stable to Higher
The memory chip segment saw overall revenue grow 3.8% QoQ and 14.5% YoY. High Bandwidth Memory (HBM) stood out, with Samsung, SK Hynix, and Micron shipping HBM3E products up 18% QoQ at high unit prices. The DRAM market was driven by data center server demand; DDR5 penetration exceeded 60%. For NAND Flash, enterprise SSD demand was stable, but the consumer market was slightly weak, prompting some suppliers to cut production to balance supply and demand.
Equipment & Materials: Investment Expansion Continues
Semiconductor equipment sales reached $28.5B in Q2, up 6.5% YoY. Applied Materials, ASML, Tokyo Electron and other major equipment makers reported full order books, especially for lithography and etching equipment. Global wafer fab capacity utilization remained high at 89%. TSMC, Samsung, and SMIC accelerated expansion in advanced nodes and specialty processes. For materials, silicon wafer shipment area grew 2.1% QoQ, but future capacity release may bring price pressure.
Regional Landscape: Americas Leads, Asia-Pacific Continues Growth
By region, the Americas (mainly US) semiconductor market was $52B in Q2, up 15% YoY, driven by concentrated AI chip shipments. The Asia-Pacific region (excluding Japan) reached $72B, up 11%, with contributions from China, South Korea, and Southeast Asia. Europe was $19B, up 8%, mainly from automotive chips. Japan was stable at around $19B.
Outlook and Risks
Multiple research institutions have raised their 2026 full-year semiconductor growth forecast to 12%-15%. However, US-China tech competition, export control policy changes, and potential geopolitical conflicts remain major uncertainties. Additionally, a bubble burst in AI chip capital could trigger market adjustments. Investors should monitor whether end demand continues in H2 and changes in inventory levels.
Semiconductor-related stocks on the Stock Exchange of Thailand (SET), such as Delta Electronics (Thailand) and Hana Microelectronics, were also affected by global trends and saw a recent rebound. Thai Securities recommends investors to monitor the global semiconductor cycle rhythm and make cautious decisions based on company fundamentals.
