JPMorgan: Asian Semis — February WSTS Data: AI Semis and Memory Deliver Strongest YoY Revenue Growth
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February 2026 global semiconductor revenue surged 86% year-over-year, the strongest growth rate since 1994 and the seventh consecutive month of acceleration, according to WSTS data analyzed by JPMorgan. Logic semiconductor revenue grew 26%, while memory revenue skyrocketed 259%, both propelled by intense AI inference and training workloads alongside agentic AI applications like Claude Code and OpenClaw.
Average selling prices drove much of the gains. Overall semiconductor ASP rose 66% annually, the highest on record, supported by leading-edge process utilization above 100% at TSMC and acute memory supply tightness. Memory ASP alone climbed 185%, with supply adequacy at approximately 60% compared to 80% during the pandemic. Industry operating margins for memory are projected to approach 70% in the first quarter of 2026.
JPMorgan expects the semiconductor upcycle to extend through 2026 and 2027, driven by US hyperscaler capex growth exceeding 60% year-over-year. Leading-edge capacity tightness should persist, with TSMC's N3 utilization reaching 120% in 2026 and above 110% in 2027. Memory supply tightness is forecast to continue through the first half of 2028. Top picks include TSMC, ASE, Alchip, Unimicron, Samsung Electronics, and SK hynix, while JPMorgan remains cautious on mature-node foundries UMC and SMIC.