Global Chip Sales Jump 146.8% as Semiconductor Stocks Sell Off
Global semiconductor sales reached $172.6 billion in September, up 146.8% from a year earlier, even as semiconductor stocks faced a sharp selloff on Nov. 5. The latest industry and company results point to continued demand across cloud infrastructure, manufacturing equipment, memory and AI connectivity.
- September global semiconductor sales rose 146.8% year to year to $172.6 billion.
- Third quarter global chip sales reached $517.7 billion, up 24.1% from the second quarter.
- Amazon continues to expect approximately $220 billion in 2026 cash capital expenditures.
- TSMC reported US$46.72 billion in third quarter revenue, up 41.2% year over year.
- Chip stocks fell sharply on Nov. 5 despite the recent demand data.
Industry sales continued to climb
The Semiconductor Industry Association reported on Nov. 3 that global semiconductor sales totaled $517.7 billion in the third quarter of 2026, an increase of 24.1% from the second quarter. September sales reached $172.6 billion, up 146.8% year to year and 7.9% from August.
The monthly figures are compiled by World Semiconductor Trade Statistics and represent a three-month moving average. The SIA said worldwide sales had increased by more than 20% quarter to quarter for the third consecutive quarter.
Sales growth was recorded across every region listed in the release. September year-to-year sales rose 191.7% in the Americas, 141.4% in Asia Pacific and other regions, 124.9% in China, 102.5% in Europe and 73.4% in Japan.
Amazon maintains its cloud spending plan
Amazon's third quarter release added evidence of demand from cloud infrastructure. AWS segment sales increased 39% year over year to $46.0 billion, which Amazon described as a $184 billion annualized revenue run rate. AWS operating income was $17.8 billion, compared with $11.4 billion a year earlier.
Amazon continues to expect 2026 cash capital expenditures to be approximately $220 billion. The company also said it had made it easier to adopt its custom AI accelerator, Trainium, with TorchNeuron.
“Our AWS investment in functionality and infrastructure is working, with over 39% year-over-year revenue growth in Q3 ($184 billion revenue run rate) and projected revenue growth rates of over 40% both in 2027 and in 2028,” Andy Jassy, Amazon's President and CEO, said in the release.
Suppliers report strong quarterly results
Lam Research reported September quarter revenue of $8.22 billion, up from $6.72 billion in the June quarter. Revenue from systems, including leading-edge wafer fabrication equipment, was about $5.73 billion, compared with about $3.55 billion in the same quarter of 2025. Lam guided December quarter revenue to $8.60 billion, plus or minus $400 million.
TSMC reported third quarter revenue of US$46.72 billion, up 41.2% year over year in U.S. dollar terms. Advanced technologies, defined as 7-nanometer and more advanced, accounted for 79% of total wafer revenue. The company expects fourth quarter revenue between US$52.3 billion and US$54.3 billion.
Sandisk reported fiscal first quarter revenue of $11.0 billion, up 23% sequentially. Its datacenter revenue reached $4,802 million, up 61% from the prior quarter and from $269 million in the same quarter a year earlier. Astera Labs reported record quarterly revenue of $584.9 million, up 49% from the prior quarter and 154% year over year, and guided fourth quarter revenue to $730 million to $750 million.
Market prices moved sharply despite the demand data
At 10:34 a.m. ET on Nov. 5, the PHLX Semiconductor Index stood at 9,419.27, down 8.27% from Wednesday's close. The index was still about 33.0% above its 2025 closing level and about 31.0% above its level one year earlier, but about 35.6% below its highest close of the past year, 14,634.72, set on June 22.
Individual stocks also fell during the session. Amazon shares were down 3.16%, Lam Research declined 10.78%, TSMC's New York-listed shares fell 7.53%, Sandisk dropped 16.94% and Astera Labs declined 14.70% at the stated time.
The figures show the contrast facing the chip sector: recent sales and spending data indicate strong demand, while a single trading session can produce substantial declines in share prices. The release presents the industry results as information for readers weighing company fundamentals against market movements, rather than as personalized financial advice.
