Needham sees mature node semiconductor strength in latest tracker

Investing.com -- Needham released its 33rd Semicap Tracker on Friday, incorporating July data for semiconductor equipment imports from Korea, Taiwan, and China, along with updated global semiconductor sales figures through June and memory spot prices through August 21.

Global semiconductor sales showed month-over-month growth acceleration in June, with the 12-month moving average reaching 7.49%, the highest monthly figure since 1984. The firm noted that the current cycle, like the historic 1984 upcycle, is being driven by memory.

Silicon MSI increased 7% year-over-year and 9% quarter-over-quarter in the second quarter of 2026. All foundries reported quarter-over-quarter wafer shipment growth. Silicon MSI now sits just 4% below its third quarter 2022 peak, with the potential to surpass that level in the second half of 2026 if current trends continue.

DDR5 DRAM spot prices reached new all-time highs almost daily in August, while NAND spot prices rebounded from the start of the month. The NAND price recovery may have contributed to Lam Research's (NASDAQ: LRCX) recent outperformance versus Applied Materials (NASDAQ: AMAT) and KLA Corporation (NASDAQ: KLAC), according to Needham.

Aggregate three-month moving average wafer fabrication equipment imports into Korea, Taiwan, and China rose 5% in July compared to June. Korea imports declined 1%, Taiwan imports increased 1%, and China imports jumped 14% month-over-month. Year-to-date aggregate WFE imports into these three regions are up 14% versus 2025.

Needham maintains Buy ratings on Cohu (NASDAQ: COHU), Kulicke and Soffa (NASDAQ: KLIC), and BE Semiconductor Industries (NASDAQ: BESI), citing tightening supply for mainstream semiconductors. The firm also maintains a Buy rating on Applied Materials and holds a Hold rating on Axcelis Technologies (NASDAQ: ACLS).

The tracker now incorporates TSMC CapEx data following reduced disclosure from the company on quarterly Board of Directors capital appropriations.

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