Deconstructing a semiconductor cycle

What can be learned from the semiconductor industry's Q3 2025 results? The industry is deep into what will likely be known as the 2026 upcycle, but the aggregate WSTS revenue figure is now dominated by AI and memory, creating a distorted picture. For the core semiconductor market—excluding AI and memory companies—growth has stalled, profitability remains weak, and a fragile recovery is at risk from soaring memory prices. Strategic adaptation is urgently needed as the traditional cycle has been broken