With AI, memory, and GPUs leading the charge for future growth, the global semiconductor market recovered with 19 per cent revenue growth in 2024. Samsung ended with the largest market share.
The global semiconductor market achieved a 19 per cent year-on-year (YoY) revenue increase in 2024, reaching $621 billion, according to a recent report by Counterpoint Research.
The report highlighted that this growth is a reflection of a strong recovery from the weak performance of 2023, driven mainly by demand for artificial intelligence (AI) technologies, despite a moderate rebound in the broader logic semiconductor market. The memory market and graphics processing units (GPUs) were pivotal in driving this growth.
Global memory revenues rose by 64 per cent YoY, supported by ongoing production cuts amid rising demand. The demand for high-bandwidth memory (HBM) also bolstered the sector. In parallel, global logic revenues increased by 11 per cent YoY, aided by the growing role of GPUs in AI model training.
In terms of market share, Samsung has solidified its leading position in 2024, increasing its share to 11.8 per cent, up from 8.9 per cent in 2023. This rise is attributed to strategic inventory building for smartphones, alongside efforts to attract mobile and AI/HPC customers for advanced nodes.
SK Hynix follows in second place, with its market share growing to 7.7 per cent from 4.8 per cent. Micron also sees growth, with a projected share of 4.8 per cent, up from 3.2 per cent.
Qualcomm holds a strong third position, with a 5.6 per cent market share and a 14 per cent YoY growth in equipment and service revenues, driven by a recovery in non-Apple smartphones and an expanding automotive business.
Broadcom is forecast to see an 8 per cent YoY increase in semiconductor revenue, driven by AI demand, while NVIDIA’s semiconductor revenues are expected to rise by 50 per cent YoY, lifting its market share to 4.3 per cent.
Conversely, Intel is facing significant challenges, with its 2024 revenues expected to decline by 24 per cent YoY, reducing its market share to 4.9 per cent.
“The persistent decline in demand within the PC and server markets, coupled with various operational hurdles, is likely to exacerbate Intel’s weaknesses,” noted the report.
Overall, while the automotive and industrial sectors are seeing slower growth, a modest recovery in these areas continues to provide support for the market. The key question now is how this recovery will shape the market in 2025, a development that only time will reveal.
