The latest report from IDC forecasts a substantial resurgence in the global semiconductor market in 2024, with an impressive annual growth rate of 20%. This resilient growth is attributed to the escalating demand for artificial intelligence (AI) and high-performance computing (HPC) across various industries.
According to Galen Zeng, Senior Research Manager for Semiconductor Research at IDC Asia/Pacific, the impact of supply and output control by memory manufacturers has led to price increases since November. The surge in demand for AI applications is expected to be a major driving force in revitalizing the semiconductor sales market in 2024. Zeng confidently expressed that the semiconductor supply chain, spanning design, manufacturing, packaging, and testing, is expected to overcome the downturn in 2023.
IDC has outlined eight key trends that are set to shape the semiconductor market in 2024, paving the way for a promising recovery:
– Anticipated Surge in Semiconductor Sales Market: IDC projects a remarkable 20% annual growth rate in 2024.
– Automotive Semiconductor Growth Driven by ADAS & Infotainment: The automotive semiconductor market is poised for growth, with Advanced Driver Assistance Systems (ADAS) and infotainment leading the way.
– Expansion of Semiconductor AI Applications: Artificial Intelligence is expected to become more integrated into personal devices, such as smartphones, PCs, and wearables, stimulating semiconductor demand.
– IC Design Growth in Asia-Pacific: Despite a slow 2023, IC design companies in the Asia-Pacific region are anticipated to rebound, with a projected 14% annual growth in 2024.
– Recovery of Foundry Industry: The foundry industry is predicted to recover in 2024, driven by increased demand for consumer electronics and AI.
– China’s Production Capacity Expansion: China’s aggressive expansion in production capacity, accompanied by intensified price competition, presents challenges to non-Chinese foundries.
– Surge in 2.5/3D Packaging Market: Advanced packaging technologies essential for meeting evolving chip requirements are expected to grow at a CAGR of 22% from 2023 to 2028.
– CoWoS Supply Chain Expansion for AI Chip Supply Boost: The CoWoS packaging technology, crucial for AI chips, is projected to witness a 130% capacity increase by the second half of 2024, strengthening the AI chip supply chain.
The semiconductor industry is poised for a dynamic 2024, with technological advancements, increased demand, and strategic collaborations laying the groundwork for substantial recovery and growth.
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