Global Semiconductor Sales to Jump 20% in 2024: IDC
What is the latest forecast for the semiconductor industry?
The semiconductor industry is expected to experience a strong recovery in 2024, after a period of decline in 2022 and 2023, according to a new report from International Data Corporation (IDC)1. The report predicts that the global semiconductor revenue will grow by 20.2% year over year in 2024, reaching $726 billion, after dropping by 11.2% in 2022 and 0.9% in 2023.
The report attributes the decline in 2022 and 2023 to several factors, such as the impact of the COVID-19 pandemic, the US-China trade war, the global chip shortage, the rising cost of capital, and the slowdown in consumer demand. However, the report also identifies several drivers for the rebound in 2024, such as the recovery of the global economy, the acceleration of digital transformation, the adoption of 5G and artificial intelligence, the innovation in chip design and manufacturing, and the diversification of the supply chain.
Which segments and regions will lead the growth in 2024?
According to the report, the segments that will lead the growth in 2024 are memory, logic, and microcomponents, which will account for 75% of the total semiconductor revenue. Memory will grow by 28.7%, logic by 18.8%, and microcomponents by 17.8%. The report also forecasts that the automotive, industrial, and communications sectors will be the fastest-growing end markets, with 28.9%, 25.6%, and 23.8% growth rates, respectively.
The report also projects that the Asia-Pacific region will remain the largest and fastest-growing market for semiconductors, with 63.4% of the global revenue and 22.2% growth rate in 2024. China will be the biggest contributor to the growth, followed by India, South Korea, and Taiwan. The report also expects that the Americas and Europe will recover from the decline in 2022 and 2023 and grow by 15.8% and 14.9%, respectively, in 2024.
What are the challenges and opportunities for the semiconductor industry in 2024?
The report acknowledges that the semiconductor industry will face several challenges and uncertainties in 2024, such as the geopolitical tensions, the environmental and social issues, the regulatory and legal changes, the technological disruptions, and the competitive pressures. The report also warns that the industry may face the risk of overcapacity and oversupply, as the chip makers ramp up their production and investments to meet the demand.
However, the report also highlights the opportunities and advantages that the semiconductor industry can leverage in 2024, such as the increasing demand for chips in various applications and devices, the emergence of new markets and segments, the collaboration and partnership among the industry players, the innovation and differentiation in products and services, and the resilience and agility of the industry to adapt to the changing environment.
