Memory Revenue Spurs Record Growth
The global semiconductor market reached an impressive $319 billion in revenue during the first quarter of 2026. Omdia reports this as a 27% increase over the last quarter of 2025. This upsurge was largely fuelled by a remarkable 80% increase in memory revenue. Demand for dynamic random-access memory (DRAM) and NAND flash memory was particularly strong, with revenues nearly doubling during the quarter.
Since Omdia began tracking quarterly data in 1Q02, the 27% growth from Q4 2025 to Q1 2026 is the highest observed. The market has enjoyed three consecutive quarters of double-digit revenue growth, with 2Q26 projected to continue this trend. Notably, Clifford Leimbach, Practice Leader at Omdia, commented, “Four consecutive quarters of double-digit revenue growth for the market show the strength of the current demand for semiconductors.”
NAND Flash Memory Leads the Rise
NAND flash memory emerged as a major contributor, achieving nearly $48 billion in revenue. The market saw a 96% rise from the previous quarter, driven by consistent demand from AI and data centre applications, coupled with ongoing supply constraints. The average selling prices (ASPs) for NAND rose sharply by 95% sequentially.
In contrast, the non-memory semiconductor market saw a more modest growth of just over 2%. Traditionally, this sector experiences a 4% decline in the first quarter. However, components in the AI and data centre ecosystem outperformed the usual decline. As a result, DRAM and NAND accounted for over 40% of all semiconductor revenue in Q1 2026, significantly higher than the long-term average of around 20%.
With utilization rates remaining high and supply recovery hampered by technology transitions, yield learning, and product mix challenges, momentum in the NAND market is expected to persist through 2Q26. Overall semiconductor revenue is anticipated to surpass $700 billion in the first half of 2026. While strong growth is expected to continue, the pace might slow compared to the first quarter.
