Global semiconductor sales hit a record $425 billion in Q2 2026, driven by surging demand for memory chips used in AI systems, reshaping supply chains and impacting device pricing worldwide.
Global semiconductor sales climbed to a record $425bn in the second quarter of 2026, according to market research firm Omdia, in a rise driven mainly by memory chips and the extraordinary appetite for components used in artificial intelligence systems. Omdia said revenue increased 31.4% from the previous quarter, extending a run of exceptional growth that has pushed first-half semiconductor sales to $752bn and left the industry on course for another record year.
The most pronounced pressure is in memory, where producers are increasingly steering output towards the chips needed for AI servers and related infrastructure. That has tightened supply, lifted average selling prices and lifted revenue across the market for DRAM, NAND flash and NOR devices, all of which posted their strongest sequential second-quarter growth since Omdia began tracking the sector in 2002. Memory now accounts for more than half of all semiconductor revenue, underscoring how heavily the current cycle is shaped by AI demand rather than traditional consumer electronics trends.
The effects are not confined to chipmakers. As Tom’s Hardware has reported, smaller smartphone and laptop makers are already feeling the strain, with some saying memory can make up as much as 60% of the bill of materials in lower-cost devices. That is forcing companies to redesign products, test more aggressively for counterfeit or refurbished parts and, in some cases, accept that shortages are becoming a supply problem as much as a pricing one. The same pressures are being seen elsewhere in the market: online prices for Nvidia’s RTX 5090 gaming GPU have surged sharply as stock has thinned, with third-party sellers asking far above earlier retail levels.
Omdia expects the pressure to continue into the third quarter, forecasting semiconductor revenue above $500bn and total sales for the first nine months of 2026 above $1.25tn. The broader picture suggests that AI infrastructure is now competing directly with phones, PCs, game consoles and other consumer devices for access to advanced chips. Manufacturers can still choose to absorb some of the extra cost, but the longer the mismatch between supply and demand persists, the more likely it is that higher component prices will be passed on to consumers.
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