Q2 2026 Market Insights 1 - Flipbook - Page 4
Global Semiconductor Market Overview
AI Infrastructure Continues Driving
Semiconductor Growth
According to Gartner, global semiconductor revenue
is projected to exceed US$1.3 trillion in 2026,
representing the strongest industry growth in more
than two decades. AI accelerators, GPUs, advanced
networking, and high-bandwidth memory (HBM)
continued driving demand throughout April and
May 2026 as hyperscalers expanded global AI
infrastructure investment. Analysts also expect AI
semiconductors to account for nearly 30% of total
industry revenue this year.
30%
ANALYSTS
ALSO EXPECT AI
SEMICONDUCTORS
TO ACCOUNT
FOR NEARLY
30% OF TOTAL
INDUSTRY
REVENUE
THIS YEAR.
DRAM and NAND Prices Continue Climbing
The memory market remained one of the tightest
segments during Q2 2026, with DRAM and NAND
pricing continuing to rise sharply as suppliers
prioritised AI-related production. According
to TrendForce, DRAM contract prices are expected
to increase by 58% to 63% quarter-on-quarter in Q2,
while NAND pricing could rise by as much as 75%.
Gartner also estimates annual DRAM prices may
increase by 125% in 2026, with NAND flash pricing
potentially surging by more than 230% as supply
remains constrained through at least 2027.
4
AI Demand Reshapes Global Supply Allocation
According to S&P Global, leading suppliers
including Samsung Electronics, SK hynix, and Micron
Technology continued reallocating production
capacity towards HBM and enterprise SSDs for
AI servers. This shift has reduced availability for
conventional DRAM, PC memory, and consumer
NAND products, resulting in tighter supply across
smartphones, PCs, and industrial electronics. Industry
analysts also estimate AI data centres could consume
nearly 70% of global DRAM output in 2026.
Advanced Nodes and Packaging Capacity
Remain Constrained
Leading-edge foundry and advanced packaging
capacity remained heavily constrained during
April and May 2026 as AI chip demand continued
exceeding available supply. According to SupplyICs,
3nm and below manufacturing capacity is
effectively sold out through 2027, while advanced
CoWoS packaging used for AI accelerators remains
under significant pressure. TSMC also confirmed
plans to accelerate new fab and advanced
packaging expansion projects to support long-term
AI demand growth.
