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Worldwide silicon wafer shipments saw a strong start to 2026, rising 13.1% year-on-year in the first quarter, according to SEMI. The growth highlights continued momentum in AI-related semiconductor demand, even as some end markets remain under pressure.

For eeNews Europe readers, the figures offer a useful snapshot of how AI is reshaping semiconductor supply chains and influencing wafer demand across multiple device segments.

AI demand drives growth

Shipments reached 3,275 million square inches (MSI) in Q1 2026, up from 2,896 MSI a year earlier. However, volumes declined 4.7% sequentially from Q4 2025, reflecting typical seasonal patterns.

“Silicon wafer demand related to AI data centers continues to be strong, including advanced logic and memory, and also now extending to power management devices,” said Ginji Yada, who also serves as an executive at SUMCO Corporation.

The data suggests AI workloads are not only boosting demand for high-end chips but also driving requirements for supporting components such as power devices.

Recovery remains uneven

Despite the overall growth, the market recovery is far from uniform. Industrial semiconductor segments are improving, helping absorb excess wafer inventory and contributing to a broader rebound.

“Overall, silicon wafer demand has improved, but the recovery is not uniform. Many device companies have noted improvements in the industrial semiconductor segment, and this is creating a more broad-based recovery as wafer inventory is absorbed. Weaker smartphone and PC shipments in the first quarter of this year may show the impact of tighter supply of memory due to AI high bandwidth memory (HBM) allocation decisions,” Yada added.

The shift in memory allocation toward AI applications appears to be affecting traditional consumer electronics markets, particularly smartphones and PCs.

Silicon wafers remain a foundational material for semiconductor manufacturing, underpinning everything from automotive electronics to cloud infrastructure. As AI continues to scale, wafer demand trends are likely to remain closely tied to data center investments and evolving chip architectures.

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