Feb. 02, 2026 –
By Neil Tyler, newelectronics
The global semiconductor industry is showing signs of stabilisation after a prolonged downturn, with growth expected to return at a more predictable pace from 2026 and continue through to 2028, according to data compiled by Avnet Silica.
According to the distributor’s Trendliner market report for the fourth quarter of 2025, semiconductor markets are beginning to recover, and that recovery is being supported by easing supply chain pressures and a return to more sustained demand in key technology segments.
Artificial intelligence remains the primary growth driver, with demand for AI-related semiconductors forecast to grow at a compound annual rate of 23 per cent, but that tends to impact the US more than it does EMEA, which is still dominated by the automotive and industrial markets.
Much of this demand has been concentrated in high-performance applications, including data centre servers, personal computers and 5G infrastructure. At the same time, Edge AI is gaining momentum across automotive advanced driver assistance systems (ADAS), industrial automation and connected consumer devices, driving incremental demand for both advanced and mature semiconductor nodes.