AI Wave Drives Strong Silicon Wafer Demand, but Recovery Is Uneven

AI data center-related silicon wafer demand remains strong, covering advanced logic, memory, and power management components. Robust demand in the power semiconductor sector is reflected in supplier price adjustments; passive components like MLCC, PCB, and related substrates also benefit from the AI wave.

While silicon wafer demand has improved, recovery is uneven: industrial semiconductor demand is picking up, with wafer inventory destocking driving broader recovery. However, smartphone and PC shipments in Q1 this year were weak, possibly due to production capacity prioritizing AI HBM leading to tight supply of general memory.

SEMI SMG's report shows that global silicon wafer shipment area in Q1 2026 reached 3275 million square inches (equivalent to ~28.96 million 12-inch wafers), up 13.1% YoY and down 4.7% QoQ due to seasonal factors.