Marking AI-driven demand for high-bandwidth memory as key to integrated device manufacturing sector growth, in Q1 2024, IDC listed top semiconductor vendors, including Samsung and Intel.
In a recent report, International Data Corporation (IDC) named the top 10 semiconductor vendors for the first quarter of 2024, including Samsung, Intel, SK Hynix, Micron, Infineon, Texas Instruments, STMicroelectronics, NXP, Sony, and Murata. The report highlighted the demand for AI technology as the driving force behind these companies.
IDC elaborated that as demand for AI technology in data centres and devices continues to grow, memory is expected to play a crucial role in driving the integrated device manufacturing (IDM) sector’s growth throughout the latter half of 2024.
Furthermore, this trend was seen as marking a recovery phase following the market decline of the COVID-19 pandemic. As a result, the integrated device manufacturing (IDM) market saw significant growth in early 2024, with high-bandwidth memory (HBM) emerging as a crucial element.
IDC stated that the increased demand for HBM, priced at four to five times the cost of traditional memory, has constrained dynamic random access memory (DRAM) capacity in the device market and has driven up prices. This surge in HBM demand has boosted overall memory market revenues.
Additionally, the launch of new AI PCs and AI smartphones, which require more memory compared to traditional devices, further fuelled memory market expansion. Therefore, three of the top five IDM vendors for Q1 2024 were memory-focused companies, collectively accounting for nearly half the revenue among the top ten vendors.
According to the report, in Q1 2024, computing continued to lead the IDM application fields, capturing 35% of the market share, up from 29% during the same period last year. The wireless communication sector followed this.
The automotive market experienced a slowdown due to high chip inventories, while the industrial market concentrated on reducing excess inventory. This was in response to customers having double-ordered and stockpiled goods due to previous supply chain disruptions.
Consequently, both the automotive and industrial markets saw a significant decrease in their market share compared to the previous year. These markets are expected to focus on inventory adjustments in the first half of 2024 and are expected to recover in the third quarter.
According to Helen Chiang, Head of Semiconductor Research, IDC Asia/Pacific, “In 2024, memory makers will continue to be key players in the global IDM market. As inventory levels gradually normalise, the demand in the automotive and industrial fields is projected to rebound in the second half of the year, which will contribute to the market’s growth.”
