Global Semiconductor Market Surges to Record Sales Amid Stock Volatility

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The semiconductor industry posted unprecedented growth in 2025 and 2026. 2025 material‑market revenue reached $73.2 billion, a 6.8 % year‑on‑year rise, with wafer‑process and packaging materials both expanding. In May 2026, global chip sales hit $120.6 billion, up 104 % versus May 2025 and 9.2 % month‑to‑month, driven by strong demand in the Americas, Asia‑Pacific and China.

At the same time, equity markets saw sharp swings. Early June 2026, major chip stocks such as SK Hynix, Samsung, Micron, AMD and Intel fell 8‑12 %, and the VanEck Semiconductor ETF lost about 10 % over five trading days. By early July, semiconductor shares recovered, lifting the Nasdaq and contributing to broader market gains.

China’s domestic semiconductor equipment sector is also gaining momentum. Companies are increasingly using locally sourced components, with two test devices built entirely from Chinese parts and a broader push toward full supply‑chain localisation amid rising geopolitical restrictions.