Key Points
- Global semiconductor sales reached $298.5 billion in Q1 2026, up 25 per cent
- March monthly sales hit $99.5 billion, a 79.2 per cent year-on-year increase
- WSTS projects global chip market will reach $975 billion in 2026
Global semiconductor sales are on track to approach $1 trillion in 2026 after the industry recorded $298.5 billion in the first quarter, a 25 per cent increase driven by rapid expansion in artificial intelligence applications, the Semiconductor Industry Association (SIA) said.
John Neuffer, president and CEO of SIA, said first-quarter performance exceeded the previous quarter, reflecting strong underlying demand across key markets. World Semiconductor Trade Statistics (WSTS), which compiles the data using a three-month moving average to smooth monthly fluctuations, estimates the global market will reach $975 billion in 2026, expanding 26 per cent year on year.
Monthly sales for March stood at $99.5 billion, up 79.2 per cent from $55.5 billion a year earlier and 11.5 per cent higher than February. The sharp year-on-year jump reflects the surge in demand for chips used in data centres and high-performance computing systems that power AI workloads.
Regional performance
Asia Pacific and other markets led growth with a 108.5 per cent year-on-year increase. The Americas followed at 83.1 per cent and China at 74.8 per cent. Europe recorded a 46.5 per cent rise, while Japan saw a comparatively modest increase of 7.4 per cent.
On a month-on-month basis, March sales rose 13.3 per cent in the Americas, 12.7 per cent in China and 9.8 per cent in Asia Pacific markets. Europe and Japan posted gains of 8.4 per cent and 7.1 per cent, respectively.
In absolute revenue terms during March, the Americas generated $33.81 billion, followed by Asia Pacific at $28.72 billion and China at $26.74 billion. Europe reported $6.20 billion and Japan $4.05 billion.
Logic chips, which perform computing functions in processors, and memory chips, which store data, are central to AI workloads and are leading the expansion. According to WSTS, logic chips are projected to grow 37 per cent to $296 billion in 2026, while memory semiconductors are expected to rise 28 per cent to $212 billion. Demand is being driven by data centres and cloud infrastructure providers scaling up capacity for AI training and inference.
Other segments are recovering at a slower pace. Sensors are projected to grow 10 per cent, microprocessors 8 per cent and analogue chips 7 per cent. Discrete semiconductors, used widely in automotive applications, are expected to decline slightly as vehicle manufacturers adjust inventory levels.
Market outlook by region
Asia Pacific is projected to remain the largest semiconductor market, contributing over $526 billion in 2026, according to WSTS. The Americas is expected to account for $339 billion. Europe and Japan are forecast to grow at a slower pace.
The global three-month moving average rose from $79.63 billion in the October to December 2025 period to $99.52 billion in January to March 2026, reflecting sequential quarterly expansion as AI infrastructure investment continues.
Your Questions, Answered
How much did global semiconductor sales grow in Q1 2026?
Global semiconductor sales rose 25 per cent to $298.5 billion in the first quarter of 2026, according to data compiled by the Semiconductor Industry Association.
What is driving the growth in chip sales?
Artificial intelligence applications are the primary driver, with demand for logic and memory chips used in data centres and high-performance computing systems leading the expansion.
Which region saw the highest semiconductor sales growth?
Asia Pacific led regional growth with a 108.5 per cent year-on-year increase in March 2026, followed by the Americas at 83.1 per cent and China at 74.8 per cent.
What is the projected size of the global semiconductor market in 2026?
World Semiconductor Trade Statistics estimates the global semiconductor market will reach $975 billion in 2026, representing a 26 per cent expansion from the previous year.
