The semiconductor industry is poised for a new wave of growth next year as the global demand for artificial intelligence (AI) and high-performance computing (HPC) boosts the sales of chips for smartphones, personal computers, and infrastructure.
According to bean counters at IDC, who have added up some numbers and divided them by their shoe size, the semiconductor sales market will bounce back in 2024 with a 20 per cent annual growth rate after a 12 per cent decline in 2023.
IDC said that the market slump in 2023 was due to weak demand and low inventory levels, which were not offset by occasional short orders and rush orders in the year’s second half.
However, it expects the market to recover in 2024, driven by the strong demand for AI chips used for data processing, complex language models and big data analytics in data centres and personal devices.
IDC Asia/Pacific senior research manager Galen Zeng said memory manufacturers’ tight control of supply and output has led to rising prices from the start of November, and the demand for AI across major applications will drive the overall semiconductor sales market to recover in 2024.
IDC expects more AI functions to be integrated into personal devices such as smartphones, PCs, and wearable devices from 2024 as semiconductor technology advances. This will lead to more innovative applications and increased demand for semiconductors and advanced packaging.
