Global Chip Sales Jump 11% in April as AI Demand Sends Market Toward $1.5 Trillion

Chip Sales Keep Smashing Records

The Semiconductor Industry Association reported on 5 June that worldwide chip sales climbed 11% month-on-month in April 2026, continuing a streak of record monthly gains driven by relentless demand for AI infrastructure. The announcement capped a week of bullish data, with forecasters now expecting the global market to nearly double in size this year.

April's figures followed a remarkable March, when sales hit $99.5 billion, a 79.2% year-over-year increase and an 11.5% sequential gain. The industry began 2026 at extraordinary speed after posting record annual sales of $791.7 billion in 2025. Monthly sales have accelerated sharply, rising from $82.5 billion in January to $88.8 billion in February and $99.5 billion in March.

A Forecast Revised by Half a Trillion Dollars

The World Semiconductor Trade Statistics organisation released its Spring 2026 forecast on 2 June, projecting the global semiconductor market will grow 90% year-over-year to reach $1.51 trillion in 2026. That is a dramatic upward revision from the $975 billion WSTS forecast in late 2025, a swing of more than $500 billion in a matter of months.

The surge is overwhelmingly driven by the memory segment, which WSTS expects to grow roughly 250% year-over-year to more than $800 billion in 2026. Looking further ahead, WSTS forecasts a further 27% expansion in 2027 to approximately $1.9 trillion.

Equipment Spending Hits a Record

The boom is not confined to finished chips. SEMI reported on 4 June that global semiconductor equipment billings reached a record $36.55 billion in the first quarter of 2026, up 14% year-on-year and 1% sequentially. SEMI attributed the record to sustained investment in AI, particularly capacity enhancements and technological upgrades supporting cutting-edge logic, DRAM, and advanced packaging.

TSMC, the world's largest contract chipmaker, said in May that it expects the global chip market to reach $1.5 trillion by 2030, while expanding its Arizona operations with equipment installation at a second fabrication facility scheduled for the latter half of 2026.

Why It Matters

The convergence of record monthly sales, sharply higher annual forecasts, and surging equipment investment points to an industry being reshaped by AI demand faster than almost anyone predicted. With memory prices climbing, analysts at Morgan Stanley have even coined the term "chipflation" to describe how AI-driven component costs are spreading beyond data centres and into the wider economy, raising the prospect of higher prices for everyday electronics.