-
- News
- Books
Featured Books
- pcb007 Magazine
Latest Issues
Current IssueWet Process Control
In this issue, we examine wet processes and how to obtain a better degree of control that allows usable data to guide our decisions and produce consistently higher-quality products.
Don’t Just Survive, Thrive
If we are to be relevant and prosper during these next critical decades in electronics, we must do more than survive. As an industry, we can and must thrive. In this issue, our contributors explore these concepts meant to help you take your business to the next level.
Material Matters
Materials management is nuanced, multifaceted, and requires a holistic systems approach for business success. When building high mix, low volume, and high technology, managing materials and overall cost containment are even greater challenges.
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - pcb007 Magazine
Semiconductor Market to Grow 20.2% in 2024 to $633 Billion
November 16, 2023 | IDCEstimated reading time: 2 minutes
International Data Corporation (IDC) has upgraded its Semiconductor Market Outlook by calling a bottom and return to growth that accelerates next year. IDC raised its September 2023 revenue outlook from $518.8 billion to $526.5 billion in a new forecast. Revenue expectations for 2024 were also raised from $625.9 billion to $632.8 billion as IDC believes the U.S. market will remain resilient from a demand standpoint and China will begin recovering by the second half of 2024 (2H24).
IDC sees better semiconductor growth visibility as the long inventory correction subsides in two of the largest market segments: PCs and smartphones. Automotive and Industrials elevated inventory levels are expected to return to normal levels in 2H24 as electrification continues to drive semiconductor content over the next decade. Technology and large flagship product introductions will drive more semiconductor content and value across market segments in 2024 through 2026, including the introduction of AI PCs and AI Smartphones next year and a much-needed improvement in memory ASPs and DRAM bit volume.
Wafer capacity pricing will remain flat next year as foundry suppliers gradually improve utilization rates and demand returns from their core fabless customers. CapEx is expected to improve by 2H24 as revenue shipments match end demand and regional ChipAct incentives stimulate investment across the supply chain.
Worldwide semiconductor revenue will grow to $526.5 billion in 2023, down 12.0% from $598 billion in 2022. This is up from the $519 billion IDC forecast in September. For 2024, IDC sees year-over-year growth of 20.2% to $633 billion, up from $626 billion in the prior forecast.
Due to increased inventory rationalization, visibility in the channel, and increasing demand pull from AI server and end point device manufacturers, IDC has upgraded its Semiconductor Market Outlook to sustainable GROWTH from TROUGH and called the bottom of the correction.
"We upgraded our Market Outlook to GROWTH as the semiconductor market returns to sustained growth," said Rudy Torrijos, research manager, Worldwide Semiconductor Supply Chain Technology Intelligence at IDC. "While inventory levels remain elevated with suppliers, visibility has clearly improved in the channel and with OEMs in key market segments. We see revenue growth matching end user demand beginning in 1H24. As a result, we expect capex to improve subsequently initiating a new investment cycle within the supply chain."
"Overall, IDC expects the total semiconductor industry to decline by 12% in 2023, which is an improvement from our September outlook. Revenues will continue to recover gradually and accelerate in 2024," said Mario Morales, group vice president, Semiconductors and Enabling Technologies at IDC. "The semiconductor market reached a bottom and has begun to grow on a quarter-over-quarter basis. ASPs are improving in DRAM, which is a good early indicator and IDC expects suppliers will continue to control capacity additions and utilization rates to drive a sustainable recovery. Accelerating demand for AI servers and AI-enabled end point devices will drive more semiconductor content in 2024-2026 fueling a new upgrade cycle across enterprises. We expect that by the end of our forecast period, AI silicon will account for almost $200 billion in semiconductor revenues."
The IDC Worldwide Semiconductor Technology Supply Chain Intelligence (STSI) serves as the basis for IDC's semiconductor supply-side research, including market forecasts, vendor market shares, and custom market models. This service contains segmented revenue data collected from over 150 of the top global private and public semiconductor companies. Revenue for over twenty semiconductor device areas, five geographic regions, seven industry segments, and more than 70 end-device applications are included in our forecast data.
Suggested Items
Zuken Introduces Harness Builder 2025 for E3.series with Enhanced Integration and Documentation Capabilities
09/11/2024 | ZukenZuken, a global leader in electrical and electronic digital engineering solutions, is proud to unveil the 2025 version of its industry-leading Harness Builder for E3.series software.
MEK Launches New PowerSpector JSAz 550: Larger 3D Desktop AOI System with New Chassis
09/11/2024 | MEKMek (Marantz Electronics), a leader in Automated Optical Inspection (AOI) and Solder Paste Inspection (SPI) technology, proudly announces the launch of its latest product, the PowerSpector JSAz 550. This new selective 3D desktop AOI system is a larger L-size model, capable of accommodating Printed Circuit Boards (PCBs) up to 550x550mm (21.7”x21.7”).
Creative Materials, Unveils Economical Conductive Ink and High Dielectric Strength Ink for Advanced Electronic Applications
09/11/2024 | Creative Materials, Inc.Creative Materials Inc., an innovator of materials for the electronics industry, is pleased to announce the launch of two new high performance ink products:
Connect With a New Job at JobCONNECT007
09/10/2024 | I-Connect007 Editorial TeamjobCONNECT007 features job openings for positions that span the entire circuit board supply chain. Whether you’re involved in design, fabrication, assembly, test, or material development or distribution, this handy resource can help you find that new gig. Once you find a position that’s a perfect fit, you can submit your resume directly to the hiring manager simply by clicking on the ad.
Lockheed Martin Welcomes Egypt to the C-130J Super Hercules Fleet
09/10/2024 | Lockheed MartinThe Egyptian Armed Forces announced at the Egypt International Air Show that Lockheed Martin will deliver two C-130J-30 Super Hercules tactical airlifters to the Egyptian Air Force (EAF) through a Foreign Military Sale (FMS) with the U.S. Air Force. Egypt is the 23rd nation to join the worldwide Super Hercules operating community.