Market Insights - Q4 2023 - New Design - Flipbook - Page 3
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General Market Insight
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A leading computer-chip industry group, the World Semiconductor Trade Statistics, has upgraded its global
market forecasts, anticipating a robust recovery in flash-memory sales in 2024 from a worldwide slump. The
group now predicts a market growth of over 13% to reach $588 billion in 2024, up by 1.3 percentage points
from its previous estimate. The optimistic outlook is driven by a significant 45% expansion in the memory
products market, contributing to the expected rebound in the semiconductor industry.
Regional
" The Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) predicts a significant
contraction of approximately 9 to 10 percent in the country's semiconductor industry for 2023. Originally
anticipating a 5 percent growth, SEIPI cites the impact of global political and economic factors, coupled with
inventory corrections, leading to a 15 percent contraction in the first quarter. Despite a partial recovery to 7
percent, SEIPI foresees continued challenges, estimating a 9-10 percent contraction in 2023 compared to the
previous year, with a modest expectation for global semiconductor demand to stabilize in 2024.
" South Korea's exports exceeded expectations in November, growing by 7.8% year-on-year to $55.80 billion,
with
overseas sales of chips rising for the first time in 16 months, signalling a strengthening global
demand. Chip exports increased by 12.9%, ending 15 months of decline and suggesting a potential bottoming
out in semiconductor demand. While exports to the United States saw a notable 24.7% jump, shipments to
China, the country's largest trading partner, declined 0.2%, and policymakers are looking to a chip demand
revival to boost economic growth amid persistent inflation risks and restrictive interest rates at home.
" Japan has implemented stringent rules for companies receiving subsidies in the semiconductor and high-tech
sector, aiming to prevent technology leaks to countries such as China and Russia. The measures, similar to the
U.S. CHIPS Act subsidies, require recipients of semiconductor-related subsidies to restrict access to sensitive
information, enforce confidentiality agreements among personnel, and take precautions to prevent the
unintentional release of critical tech details. The move by Japan's Ministry of Economy, Trade and Industry
reflects the country's efforts to retain high-value technology within its borders, particularly as it works to
bring advanced logic production back and enhance its supercomputer capabilities.
" Singapore's factory output rebounded in October, ending a year-long slump, with a 7.4% rise in production,
driven by growth in the key electronics industry, particularly semiconductors. The turnaround was led by a
14.8% year-on-year jump in the electronics industry, with the semiconductor segment expanding by 17.8%,
marking the second straight month of expansion for both electronics and chip production. The recovery in
factory output is seen as a positive sign, but economists caution that the global economic backdrop remains
uncertain, with factors like high interest rates and geopolitical tensions possibly affecting Singapore's
manufacturing recovery in the coming months.
" The top semiconductor companies, led by TSMC, control 98% of the global market, with TSMC holding the
largest share at 60% of industry revenue in Q1 2023. Samsung from South Korea, an integrated device
manufacturer, earned 12.4% of the industry's revenue. The top five companies also include GlobalFoundries
(USA), UMC (Taiwan), and SMIC (China), each capturing around 6% of the market, highlighting the dominance
and concentration of the semiconductor industry, where the top 10 foundry companies alone account for 98%
of the entire sector's revenue.
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