Due to surging global demand for artificial intelligence (AI) and high-performance computing (HPC), combined with stable demands for smartphones, personal computers, infrastructure, and strong automotive sector growth, the semiconductor industry is anticipated to experience a significant growth wave.
A new report forecasts that the global semiconductor sales market will see a resurgence in 2024, with an anticipated annual growth rate of 20 per cent. This growth is attributed to a significant increase in demand for artificial intelligence (AI) and high-performance computing (HPC). Additionally, the market is being buoyed by consistent demand for smartphones, personal computers, and infrastructure, along with steady growth in the automotive industry. According to the latest research from IDC, these factors are set to catalyze a new growth phase in the semiconductor industry. The industry encompasses a range of products, including logic integrated circuits (IC), analogue IC, microprocessor and microcontroller IC, and memory chips.
Galen Zeng, Senior Research Manager of Semiconductor Research at IDC Asia/Pacific, notes that memory manufacturers’ stringent control over supply and production has led to rising prices since early November. Furthermore, the expanding demand for AI across various applications is poised to drive the overall semiconductor sales market’s recovery by 2024.
Zeng also mentioned that the semiconductor supply chain, which includes design, manufacturing, packaging, and testing, is expected to overcome its downturn in 2023.
The automotive market’s growth has been robust, particularly with the evident trends towards automotive intelligence and electrification, which are key factors propelling the future semiconductor market. Advanced Driver-Assistance Systems (ADAS) currently dominate the automotive semiconductor market, which is projected to grow at a compound annual growth rate (CAGR) of 19.8 per cent by 2027, accounting for 30 per cent of the market. Similarly, infotainment systems, driven by advancements in automotive intelligence and connectivity, represent the second-largest market share. This segment is expected to grow at a CAGR of 14.6 per cent by 2027, making up 20 per cent of the market.
The report further states that the increasing reliance of automotive electronics on chips indicates a long-term and stable demand for semiconductors. With the continuous evolution of semiconductor technology, it’s anticipated that more AI functions will be integrated into personal devices starting in 2024, including AI-enabled smartphones, PCs, and wearable devices.
The introduction of AI into personal devices is expected to lead to innovative applications, which will, in turn, stimulate an increase in semiconductor demand and advanced packaging technologies, as predicted by the IDC report.
