8 MARKET NEWS Issue 2 2026 Power Electronics Europe www.power-mag.com ASC Global, a leading global distributor of electronic components, has released its Q2 2026 Market Report, detailing a period of historic volatility and structural shifts within the semiconductor industry. The report highlights how the rapid expansion of Artificial Intelligence (AI) and a deepening operational crisis at Nexperia are reshaping procurement strategies for 2026 and beyond. The “Memory Supercycle” and Production Cannibalization As of April 2026, the memory market has transitioned from a shortage into a state of structural scarcity. High Bandwidth Memory (HBM) and Enterprise SSD production have effectively “cannibalized” lines previously dedicated to general-purpose DRAM and NAND. Unprecedented Price Surges: DRAM contract prices are projected to rise by 58 63% in Q2 2026 alone, while NAND Flash (SSD) prices may surge by up to 75%. The 70% Inversion: Analysts now estimate that AI data centers will consume approximately 70% of high-end DRAM in 2026, leaving minimal supply for industrial and consumer sectors. Extended Lead Times: Procurement teams are facing lead times of 40+ weeks for high-density RDIMM and enterprise configurations. The Nexperia Crisis: An Operational “Divorce” The report identifies a critical supply chain risk involving Nexperia, which has escalated into a near-total operational divorce between its European headquarters and Chinese subsidiary. Governance Conflict: In March 2026, Nexperia B.V. (Netherlands) disabled IT access for staff in China, citing unauthorized actions by Chinese ASC Global Releases Q2 2026 Market Report: AI Infrastructure Triggers “Memory Supercycle” and Global Supply Chain Realignment management. Quality Risks: Nexperia HQ has warned that it cannot validate the authenticity or AEC-Q101 automotive-grade status of components produced in China using non validated local wafers. Global Realignment: Nexperia B.V. is fast-tracking a $300 million expansion in Malaysia to move 90% of global production out of China by mid2026. Industry-Wide Pricing Adjustments Major manufacturers have announced significant price hikes effective April 1, 2026, to offset rising material and energy costs: Texas Instruments: Adjustments of up to 85% for specific analog power switches. Intel: CPU price hikes of up to 30% due to supply chain tightening. NXP: Broad price adjustments impacting automotive and industrial portfolios. Strategic Recommendations for Procurement Leaders “The shortage is no longer just a pricing issue; it is reshaping product lifecycles,” states the report. ASC Global recommends that organizations consider Phase Buying - deferring non urgent purchases until late 2026 - and implement Frequent ReQuoting, as quotes older than 14 days are now considered obsolete due to weekly price adjustments. https://mro.ascglobal.com/mro-marketreport/ Gallium Nitride Semiconductor Devices Market Size Worth USD 32.31 Billion by 2034 | CAGR: 26.8% The global Gallium Nitride Semiconductor Devices Market is entering a decisive growth phase, driven by technological innovation, expanding applications in high-performance electronics, and widespread industry adoption. The latest market research indicates that gallium nitride (GaN) semiconductor devices are rapidly transforming the landscape of power electronics, RF communications, and highefficiency systems — positioning GaN as a core component of next-generation semiconductor technology. As a wide-bandgap semiconductor material, GaN offers compelling advantages over traditional silicon, including higher electron mobility, greater power density, and superior high-frequency performance. These properties make GaN devices essential in sectors ranging from 5G telecommunications and electric vehicles (EVs) to consumer electronics and renewable energy systems — all of which demand efficiency, miniaturisation, and reliability. Explosive Market Growth Forecasts The global GaN semiconductor devices market is poised for significant expansion through 2034, with demand driven by multiple highgrowth applications. According to industry projections, the market is expected to grow to approximately USD 32.31 billion by 2034, reflecting a robust compound annual growth rate (CAGR) led by accelerating adoption across key industries. This momentum is part of a broader industry trend toward wide-bandgap semiconductors that deliver higher energy efficiency, smaller form factors, and enhanced thermal performance, creating an ecosystem that increasingly favors GaN over legacy silicon technologies — especially in demanding use cases such as power conversion, RF amplification, and high-speed data transmission. Drivers Fuelling GaN Adoption A number of powerful market forces are propelling the adoption of GaN semiconductor devices:
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