Global Semiconductor Market to Surge 90% in 2026, Driven by AI Demand

The World Semiconductor Trade Statistics (WSTS) has released its latest forecast, projecting that the global semiconductor market will grow by nearly 90% year-on-year in 2026, reaching a scale of $1.511 trillion (approximately 10.2 trillion yuan). This growth rate is set to hit an all-time high, marking the first time the global semiconductor market will exceed the $1 trillion threshold.

According to the WSTS report, the market is expected to maintain robust growth in 2027, with a year-on-year increase of 26.6% and a total size of $1.914 trillion (around 12.9 trillion yuan). All major regional markets worldwide will continue their upward trajectory, with the Americas and the Asia-Pacific region serving as the dual core engines propelling global expansion.

The exponential growth in demand for computing power, fuelled by the rapid advancement of artificial intelligence, stands as the primary catalyst behind the semiconductor market’s stellar performance. Training and inference processes for AI large models have triggered a surge in demand, directly driving the explosive growth of the global semiconductor market. In 2026, the large-scale deployment of AI infrastructure will lead to a concentrated outbreak of demand, while a larger market base will naturally moderate growth rates in 2027.

The semiconductor industrial chain encompasses upstream materials and equipment, midstream manufacturing, packaging and testing, and downstream end applications including consumer electronics, automotive electronics and communication devices. Chinese enterprises have established distinct advantages in key segments of the global semiconductor industrial landscape, with a number of A-share listed companies emerging as outstanding representatives.

Against the backdrop of a booming global semiconductor industry, Chinese semiconductor enterprises are seizing opportunities to accelerate development. In the first quarter of 2026, A-share listed companies in the semiconductor sector delivered strong overall earnings growth.

Wind data shows that 169 A-share listed semiconductor companies recorded a combined year-on-year increase of 124.83% in net profit attributable to shareholders for the first quarter. Six companies, including Shenzhen Demell Technology Co., Ltd., Shenzhen Biwin Storage Technology Co., Ltd., Naura Technology Group Co., Ltd., GigaDevice Semiconductor Inc., Semiconductor Manufacturing International Corporation (SMIC), and Cambricon Technologies Corporation Limited, each posted net profits exceeding 1 billion yuan, at 3.346 billion yuan, 2.899 billion yuan, 1.635 billion yuan, 1.461 billion yuan, 1.361 billion yuan, and 1.013 billion yuan respectively.

SMIC stated in its announcement that, based on customer requirements and existing order books, the company holds a more optimistic outlook for overall operations in 2026 compared with the previous quarter. It will closely monitor customer needs, flexibly allocate resources, accelerate product response speed, and ensure consistent high-quality delivery amid a complex operating environment.

The current surge in memory chip prices stems from the explosive demand for AI computing power, and the supply-demand gap is unlikely to be bridged in the short term, supporting continued prosperity in the memory market. Gross profit margins for relevant companies remain at elevated levels, with future profitability contingent on sustained monitoring of price transmission and cost fluctuations. Industry expectations point to further upside potential for product prices, driven by robust AI application and token invocation demand.

China stands as the world’s largest semiconductor consumer market and one of the most comprehensively equipped industrial chain nations. Enterprises are focused on building regionally secure supply chain systems, enhancing operational efficiency and industrial resilience through in-depth industrial chain integration. Long-term strategic focus on core technology research and development remains imperative, requiring sustained capital investment and talent cultivation to achieve a comprehensive transition from cost-efficiency advantages to technology leadership.