WSTS: Global Semiconductor Market Approaches $1 Trillion in 2026, Forecast to Grow 26.3%

The World Semiconductor Trade Statistics (WSTS) organization today released its latest global semiconductor market forecast, projecting that global semiconductor revenue is expected to grow by 22.5% in 2025, followed by a further 26.3% increase in 2026—reaching $975 billion and nearing the $1 trillion mark—while the pace of growth is expected to moderate in 2027 and 2028.

WSTS estimates that global semiconductor revenue in 2025 is poised to reach $772 billion—nearly $45 billion higher than previous estimates—marking a year-over-year increase of 22.5%. This growth is primarily driven by robust demand for AI-related applications and data center infrastructure, which is fueling expansion in both the logic and memory segments.

In 2025, revenue from logic ICs is expected to surge by 37%, making it the product category with the highest growth rate. This is followed by memory revenue, which is projected to grow by 28%; sensors, up 10%; microprocessors, up 8%; analog ICs, up 7%; and optoelectronics components, up 4%. Conversely, revenue from discrete components is expected to experience a slight decline, impacted by softening demand within the automotive sector.

Regionally, Japan is the only market expected to see a decline this year, contracting by 4.1% year-over-year. The Americas region, meanwhile, is projected to surge by 29.1%, representing the strongest growth among all regions. The Asia-Pacific region is also expected to see revenue growth of 24.9%, while Europe is forecast to experience modest growth of 5.6%. Looking ahead to next year, all regions are expected to demonstrate growth; the Americas is once again projected to lead the pack with the most significant expansion—a 34.4% year-over-year increase—followed by the Asia-Pacific region with a growth rate of 24.9%, while Europe and Japan are both expected to see annual growth rates of approximately 11%.

Looking ahead to 2026, the WSTS projects that global semiconductor revenue is expected to grow by another 26.3%, reaching $975 billion. Memory and logic ICs remain the primary growth drivers, with growth rates for both exceeding 30%—specifically, 39.4% and 32.1%, respectively.

Reprinted from iJiwei