Market Insights - Q4 2023 - New Design - Flipbook - Page 2
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General Market Insight
Semiconductor Industry Market Growth
Global
" The global semiconductor industry is poised for a Q4 2023 recovery, with a 22% increase in electronic sales
and a 4% rise in IC sales predicted. Despite positive trends in sales, semiconductor manufacturing indicators
show softness, with declining fab utilization rates and capital expenditures. Front-end equipment sales remain
robust due to government incentives, while back-end equipment billings are expected to bottom in Q4 2023,
signalling a turnaround and setting the stage for growth in 2024, according to the Semiconductor
Manufacturing Monitor (SMM) Report by SEMI and TechInsights.
" Gartner forecasts global semiconductor revenue to grow by 16.8% in 2024, reaching $624 billion, following a
projected decline of 10.9% in 2023, valued at $534 billion. The decline in 2023 is attributed to reduced demand
from smartphones and PCs, coupled with weakness in data centre/hyperscale spending. However, a strong
rebound in 2024 is expected, driven by double-digit growth in the memory market. The worldwide memory
market is predicted to rebound with a 66.3% growth in 2024 after a 38.8% decline in 2023. NAND flash revenue
is expected to recover from a decline of 38.8% to $35.4 billion in 2023, reaching $53 billion in 2024, a 49.6%
YoY increase. The DRAM market, facing oversupply and low demand, is anticipated to rebound in 2024, with
an 88% increase to $87.4 billion. The demand for high-performance GPU-based servers and accelerator cards
in data centres, driven by developments in generative AI and large language models, is expected to contribute
to this recovery. Gartner estimates that by 2027, over 20% of new servers will include workload accelerators
due to the integration of AI techniques into data centre applications.
" Global semiconductor sales in September 2023 rose by 1.9% compared to August but declined by 4.5%
compared to the same month in the previous year, as reported by the World Semiconductor Trade Statistics
(WSTS) organization. The third quarter of 2023 saw worldwide semiconductor sales totalling $134.7 billion,
marking a 6.3% increase from the second quarter but a 4.5% decrease from the third quarter of 2022. Despite
the year-over-year decline, the month-to-month increase for the seventh consecutive time is seen as positive
momentum in the chip market. John Neuffer, CEO of the Semiconductor Industry Association, emphasizes the
strong long-term outlook for semiconductor demand, highlighting their crucial role in various products and
the emergence of transformative technologies.
" Despite facing challenges such as the Ukraine-Russia war, Chinese lockdowns, high inflation, and demand
fluctuations, the Asia/Pacific semiconductor fabless market demonstrated resilience in 2022. While the region
experienced a temporary setback with a 6.5% decline in market size to $78.5 billion, this marked the first yearon-year negative growth since the pandemic's onset. Notably, Taiwan maintained its strong position, securing
73% market share among the top 10 companies, propelled by influential players like MediaTek. Although the
global semiconductor industry faced a decline, there is optimism for recovery in 2024 as companies pivot
towards promising applications such as AI, high-performance computing, servers, automotive electronics, and
industrial electronics, signalling a positive shift in the market's trajectory.
" The Global GNSS Chip Industry, valued at US$ 5.2 billion in 2022, is set to reach US$ 9.7 billion by 2032, driven
by high demand in the semiconductor and electronics sector. The growth is fuelled by the superior
functionality of GNSS chips, offering higher precision and the ability to receive signals from multiple satellite
navigation systems. Key applications include asset tracking in Industry 4.0, benefiting automotive
manufacturers in production optimization and predictive maintenance. The Asia Pacific market is projected to
be worth US$ 4.9 billion by 2032. Key players like Qualcomm, STMicroelectronics, and MediaTek are focusing
on innovation and expanding product portfolios to stay competitive.
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