June 16, 2026 /SemiMedia/ — Global semiconductor revenue reached $319 billion in the first quarter of 2026, rising 27% from the previous quarter, according to new data from Omdia.

The increase marked the strongest quarterly growth rate since Omdia began tracking the market in 2002, underscoring the scale of the current memory-led semiconductor upcycle.

Memory chips were the main driver of the expansion. Omdia said memory semiconductor revenue rose more than 80% sequentially in the first quarter, with NAND Flash revenue climbing a record 96% to about $48 billion.

The sharp increase was largely driven by higher average selling prices. Demand for large-capacity storage from AI servers and data centers has increased rapidly, while earlier production cuts and supply reductions caused by process transitions have tightened availability across parts of the NAND market.

DRAM also benefited from AI infrastructure demand. High-bandwidth memory, DDR5 and high-capacity server memory continued to see strong demand, lifting the role of memory products across the broader semiconductor market.

In the first quarter, DRAM and NAND Flash together accounted for more than 40% of total semiconductor revenue, roughly double the long-term average of about 20%.

Non-memory semiconductor markets were more stable, with revenue rising only about 2% sequentially. Some categories, including microcontrollers and optoelectronic components, declined slightly due to seasonal weakness and uneven recovery in end-market demand.

Samsung Electronics and SK hynix are seen as major beneficiaries of the current memory upswing. The two companies control a large share of the global DRAM market and are increasing their exposure to higher-value products such as HBM, DDR5 and enterprise SSDs.

Securities analysts expect both companies to report stronger-than-expected second-quarter results. Kiwoom Securities said Samsung Electronics’ revenue and operating profit could rise 36% and 75% year-over-year, respectively, while SK hynix is also expected to post strong growth on higher AI memory demand and improved pricing.

Omdia practice leader Clifford Leimbach said first-half semiconductor revenue is expected to exceed $700 billion, with a strong possibility that full-year revenue could surpass $1 trillion.