Following a record-setting year for the semiconductor industry, the start of the new year continued the momentum, as semiconductor revenue grew 27% in 1Q26 from 4Q25, according to new research from Omdia. The gain marked an unusually strong start to the year for the market, extending the acceleration seen in recent quarters. Memory revenue drove the increase, rising over 80% sequentially in 1Q26 from 4Q25.
Since Omdia began tracking the semiconductor market at a quarterly level in1Q02, this 27% quarter-over-quarter (QoQ) growth is the highest observed. The result indicates a sharp shift in the semiconductor market’s recent pattern, with memory playing a central role in the latest expansion. The market has now experienced three consecutive quarters of double-digit revenue growth, with 2Q26 expected to continue this pattern.
Artificial Intelligence-related demand remains strong, while memory supply/demand imbalances continue to be among the leading trends in the semiconductor market. Those dynamics have helped reshape near-term revenue patterns after a record-setting year, with demand conditions and memory pricing pressures influencing the pace of growth. Omdia’s data points to continued momentum heading into the next quarter, led by the same forces that lifted the market at the start of the year.
