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Semiconductor Market Surpasses $300B Quarterly Revenue in 1Q 2026
Semiconductor revenue grew 27% quarter-over-quarter (QoQ) in the first quarter of 2026, reaching $319 billion, according to Omdia research. This marks the highest QoQ growth since Omdia began tracking the market in 2002. Memory revenue drove the surge, rising over 80% sequentially, with NAND flash revenue reaching nearly $48 billion (up 96% QoQ) and DRAM nearly doubling. Memory components accounted for over 40% of all semiconductor revenue, far exceeding the long-term average of 20%. Strong AI demand and supply constraints pushed NAND average selling prices up 95% QoQ. Outside memory, non-memory semiconductor revenue grew just over 2% QoQ, outperforming the typical 4% QoQ decline in the first quarter. Components in the AI and data center ecosystem helped offset seasonal declines in microcontrollers, discretes, and optical markets. The market has now seen three consecutive quarters of double-digit revenue growth. Omdia expects Q2 2026 to continue this pattern, with quarterly growth above 20%, bringing first-half 2026 revenue to over $700 billion. "Four consecutive quarters of double-digit revenue growth show the strength of current demand," said Clifford Leimbach, Practice Leader at Omdia. "This expected growth would bring 1H 2026 to over $700 billion, well on track to surpass the $1 trillion threshold this year."