Written by: Rita
Global semiconductor sales increased 131% year over year in July, but fell 9.5% month over month, slightly less than the historical average decline of 8.5%. On September 8, Bernstein released a WSTS-tracked report, noting that memory remains the core engine of growth, up 452% year over year. With this performance, memory contributed approximately $355 billion in incremental industry revenue year-to-date, driving industry growth of 111% since the beginning of the year. Excluding memory, sales still recorded a 35% year-over-year increase.
The rise in memory prices explains nearly 70% of the industry’s 111% growth this year. In the month-over-month data for July, most product categories outperformed typical seasonal patterns, but regional performance diverged clearly: China fell 28% month over month, while the Americas declined only 0.4%.
Memory contributed nearly 70% of the incremental increase; non-memory still rose 35%
In July, total semiconductor sales grew 131% year over year, staying at a high level following June’s 144%. Memory, with a 452% year-over-year increase, continued to lead growth. As of July, memory had contributed roughly $355 billion in added industry revenue, accounting for nearly 70% of the industry’s 111% growth since the start of the year. Even the memory price factor alone supported most of the industry’s rise.
Excluding memory, industry sales grew 35% year over year, and demand for non-memory products also remained healthy. Looking at 3-month rolling data, industry sales increased 30.4%, far above the historical average of 5.5%. Within that, rolling memory growth was 48.3%, while non-memory also reached 10.8%.
All product categories outperformed seasonality on a month-over-month basis
Total July sales fell 9.5% month over month, slightly below the historical average of 8.5%. However, performance across most product categories generally exceeded seasonal expectations.
Discrete devices declined 5.9% month over month, better than the seasonal average decline of 10.2%. Standard analog increased 8.6% month over month, better than the 2.7% gain/decline of the seasonal norm. Logic devices increased 2.2% month over month, outperforming the seasonal decline of 0.9%. MCU fell 1.5%, better than the seasonal decline of 9.1%. DSP grew 6.8%, outperforming the seasonal decline of 5.1%. DRAM fell 17.5%, better than the seasonal decline of 25.7%. NAND fell 14.7%, better than the seasonal decline of 28.8%.
MPU declined 8.2% month over month, below the seasonal average of a 5.7% decline—one of the few categories that underperformed the historical trend. Optoelectronics, sensors, and application-specific analog products were broadly in line with the historical average.
Regional performance diverged clearly; China fell 28% month over month
On a year-over-year basis, sales grew across all regions. The Americas rose 172.6% year over year, Europe 89.8%, Japan 58.4%, China 97.5%, and other Asia-Pacific regions 140.3%.
On a month-over-month basis, regional performance diverged sharply. The Americas fell only 0.4%, Japan increased 1.6%, Europe fell 4.4%, other Asia-Pacific regions fell 4.7%, and China fell 28.0%. Excluding memory, month-over-month changes were: the Americas +13.3%, Europe -5.9%, Japan +0.2%, China -5.9%, and other Asia-Pacific regions -0.9%. China’s sharp drop was mainly driven by volatility in memory prices.
Shipments were flat; ASP was supported by memory prices
In July, total shipments were essentially flat month over month (-0.3%), while average selling prices fell 9.3% month over month. On a year-over-year basis, shipments grew 16.3%, while average selling price increased 98.8%. Memory prices remained the main driver of the sharp year-over-year rise in ASP.
Shipment performance varied by category. Month over month, shipments increased for discrete devices, optoelectronics, and DSP, while shipments declined for sensors, standard analog, logic, MPU, MCU, DRAM, and NAND. Using 3-month rolling calculations, total shipments grew 10.2%, with increases across all categories.
Memory ASP rose noticeably month over month: DRAM price per bit increased 6.5%, while NAND increased 9.5%. This contrasts with month-over-month shipment declines of more than 20% for memory, indicating that price factors for memory still dominate industry growth.
Automotive and computer terminals outperformed seasonality
ASIC sales increased 0.5% month over month, outperforming the seasonal decline of 2.5% versus the historical average. Among terminal markets, computers and peripherals increased 2.8% month over month, better than the seasonal decline of 3.0%; the automotive segment fell 0.5%, better than the seasonal decline of 5.3%; and multifunction and other applications fell 3.6%, better than the seasonal decline of 5.6%.
Consumer electronics fell 8.2%, worse than the seasonal decline of 6.0%; wireless communications fell 6.1%, worse than the seasonal decline of 0.1%; and wired communications grew 1.2%, worse than the seasonal growth of 3.9%. The resilience of automotive and industrial segments, along with the above-expectations performance in the computer sector, reflects structural support from AI-related demand for the semiconductor terminal market.
Bernstein’s data shows that in July, the semiconductor industry exhibited price-driven growth and structural differentiation. The rise in memory prices was the core driver of total growth. Meanwhile, healthy growth in the non-memory segment suggests that the industry’s fundamentals have not become overly concentrated in a single product category. In terms of regional differentiation, the Chinese market saw a sharp month-over-month decline; however, given the special nature of memory price volatility, this pattern is not yet sufficient to change the industry’s overall positive outlook.
Disclaimer
This article is compiled and interpreted based on the third-party brokerage research report (Bernstein, September 8, 2026) provided by ChaoXiang Research, together with information from the public market. The ratings, target prices, earnings forecasts, and related judgments cited in the article are solely the views of the brokerage’s analysts and represent only the position of their institution. They do not represent the views of ChaoXiang Research, nor do they constitute any investment advice.
There are risks in the market; decisions must be made independently. This article should not be used as a basis for buying or selling any securities.
Global semiconductor sales increased 131% year over year in July, but fell 9.5% month over month, slightly less than the historical average decline of 8.5%. On September 8, Bernstein released a WSTS-tracked report, noting that memory remains the core engine of growth, up 452% year over year. With this performance, memory contributed approximately $355 billion in incremental industry revenue year-to-date, driving industry growth of 111% since the beginning of the year. Excluding memory, sales still recorded a 35% year-over-year increase.
The rise in memory prices explains nearly 70% of the industry’s 111% growth this year. In the month-over-month data for July, most product categories outperformed typical seasonal patterns, but regional performance diverged clearly: China fell 28% month over month, while the Americas declined only 0.4%.
Memory contributed nearly 70% of the incremental increase; non-memory still rose 35%
In July, total semiconductor sales grew 131% year over year, staying at a high level following June’s 144%. Memory, with a 452% year-over-year increase, continued to lead growth. As of July, memory had contributed roughly $355 billion in added industry revenue, accounting for nearly 70% of the industry’s 111% growth since the start of the year. Even the memory price factor alone supported most of the industry’s rise.
Excluding memory, industry sales grew 35% year over year, and demand for non-memory products also remained healthy. Looking at 3-month rolling data, industry sales increased 30.4%, far above the historical average of 5.5%. Within that, rolling memory growth was 48.3%, while non-memory also reached 10.8%.
All product categories outperformed seasonality on a month-over-month basis
Total July sales fell 9.5% month over month, slightly below the historical average of 8.5%. However, performance across most product categories generally exceeded seasonal expectations.
Discrete devices declined 5.9% month over month, better than the seasonal average decline of 10.2%. Standard analog increased 8.6% month over month, better than the 2.7% gain/decline of the seasonal norm. Logic devices increased 2.2% month over month, outperforming the seasonal decline of 0.9%. MCU fell 1.5%, better than the seasonal decline of 9.1%. DSP grew 6.8%, outperforming the seasonal decline of 5.1%. DRAM fell 17.5%, better than the seasonal decline of 25.7%. NAND fell 14.7%, better than the seasonal decline of 28.8%.
MPU declined 8.2% month over month, below the seasonal average of a 5.7% decline—one of the few categories that underperformed the historical trend. Optoelectronics, sensors, and application-specific analog products were broadly in line with the historical average.
Regional performance diverged clearly; China fell 28% month over month
On a year-over-year basis, sales grew across all regions. The Americas rose 172.6% year over year, Europe 89.8%, Japan 58.4%, China 97.5%, and other Asia-Pacific regions 140.3%.
On a month-over-month basis, regional performance diverged sharply. The Americas fell only 0.4%, Japan increased 1.6%, Europe fell 4.4%, other Asia-Pacific regions fell 4.7%, and China fell 28.0%. Excluding memory, month-over-month changes were: the Americas +13.3%, Europe -5.9%, Japan +0.2%, China -5.9%, and other Asia-Pacific regions -0.9%. China’s sharp drop was mainly driven by volatility in memory prices.
Shipments were flat; ASP was supported by memory prices
In July, total shipments were essentially flat month over month (-0.3%), while average selling prices fell 9.3% month over month. On a year-over-year basis, shipments grew 16.3%, while average selling price increased 98.8%. Memory prices remained the main driver of the sharp year-over-year rise in ASP.
Shipment performance varied by category. Month over month, shipments increased for discrete devices, optoelectronics, and DSP, while shipments declined for sensors, standard analog, logic, MPU, MCU, DRAM, and NAND. Using 3-month rolling calculations, total shipments grew 10.2%, with increases across all categories.
Memory ASP rose noticeably month over month: DRAM price per bit increased 6.5%, while NAND increased 9.5%. This contrasts with month-over-month shipment declines of more than 20% for memory, indicating that price factors for memory still dominate industry growth.
Automotive and computer terminals outperformed seasonality
ASIC sales increased 0.5% month over month, outperforming the seasonal decline of 2.5% versus the historical average. Among terminal markets, computers and peripherals increased 2.8% month over month, better than the seasonal decline of 3.0%; the automotive segment fell 0.5%, better than the seasonal decline of 5.3%; and multifunction and other applications fell 3.6%, better than the seasonal decline of 5.6%.
Consumer electronics fell 8.2%, worse than the seasonal decline of 6.0%; wireless communications fell 6.1%, worse than the seasonal decline of 0.1%; and wired communications grew 1.2%, worse than the seasonal growth of 3.9%. The resilience of automotive and industrial segments, along with the above-expectations performance in the computer sector, reflects structural support from AI-related demand for the semiconductor terminal market.
Bernstein’s data shows that in July, the semiconductor industry exhibited price-driven growth and structural differentiation. The rise in memory prices was the core driver of total growth. Meanwhile, healthy growth in the non-memory segment suggests that the industry’s fundamentals have not become overly concentrated in a single product category. In terms of regional differentiation, the Chinese market saw a sharp month-over-month decline; however, given the special nature of memory price volatility, this pattern is not yet sufficient to change the industry’s overall positive outlook.
Disclaimer
This article is compiled and interpreted based on the third-party brokerage research report (Bernstein, September 8, 2026) provided by ChaoXiang Research, together with information from the public market. The ratings, target prices, earnings forecasts, and related judgments cited in the article are solely the views of the brokerage’s analysts and represent only the position of their institution. They do not represent the views of ChaoXiang Research, nor do they constitute any investment advice.
There are risks in the market; decisions must be made independently. This article should not be used as a basis for buying or selling any securities.