The SEMI Silicon Manufacturers Group (SMG) reported that worldwide silicon wafer shipments reached 3,275 million square inches (MSI) in Q1 2026. This volume represents a 13.1% increase over the first quarter of 2025. Strong demand for advanced logic and memory chips in AI data centers drove the growth, impacting major ETFs including SMH, QQQ, and XLK.
Shipments fell 4.7% sequentially from Q4 2025 due to seasonal trends. SEMI SMG Chairman Ginji Yada stated that while AI demand is robust, the broader market recovery remains non-uniform. Weakness in smartphone and PC markets reflects a shift in memory supply toward high-bandwidth memory (HBM) for AI applications.