-
- News
- Books
Featured Books
- pcb007 Magazine
Latest Issues
Current IssueInner Layer Precision & Yields
In this issue, we examine the critical nature of building precisions into your inner layers and assessing their pass/fail status as early as possible. Whether it’s using automation to cut down on handling issues, identifying defects earlier, or replacing an old line...
Engineering Economics
The real cost to manufacture a PCB encompasses everything that goes into making the product: the materials and other value-added supplies, machine and personnel costs, and most importantly, your quality. A hard look at real costs seems wholly appropriate.
Alternate Metallization Processes
Traditional electroless copper and electroless copper immersion gold have been primary PCB plating methods for decades. But alternative plating metals and processes have been introduced over the past few years as miniaturization and advanced packaging continue to develop.
- Articles
- Columns
Search Console
- Links
- Media kit
||| 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
ITW EAE Achieves ISO 14001 Certification Across All Manufacturing Sites
01/14/2025 | ITW EAEITW EAE, the Electronic Assembly Equipment division of ITW, proudly announces that its manufacturing facilities in Camdenton, Missouri; Lakeville, Minnesota; and Suzhou, China have achieved ISO 14001 certification.
SEMI Industry Strategy Symposium 2025 Opens to Highlight Solutions for Managing Rapid Semiconductor Industry Growth
01/14/2025 | SEMIIndustry Strategy Symposium (ISS) 2025 sessions open gathering semiconductor industry executives for analysis of growth projections and pivotal business trends for the year ahead.
Weidmuller USA Celebrates 50 Years of Growth and Innovation
01/14/2025 | Weidmüller GroupWeidmuller USA is proud to celebrate its 50th anniversary in 2025, marking five decades as a pioneer of innovation in smart industrial connectivity and automation products and solutions.
Hot Off the Press: Explore the New Issue of IPC Community
01/14/2025 | IPC Community Editorial TeamThe latest digital copy of IPC Community, is now ready to view. Each quarter, IPC Community provides exclusive interviews and practical tips on what’s happening with IPC and its members. Find stories on IPC student leadership, successful women in business, the trouble with tariffs, the inside workings on an IPC mentorship duo, standards updates, and so much more.
SAMI-AEC Showcases Cutting-Edge Technological Solutions at IKTVA 2025
01/13/2025 | SAMISAMI Advanced Electronics Company (SAMI-AEC), a subsidiary of SAMI, is proud to announce its participation in the “IKTVA Forum and Exhibition 2025,” the region’s leading event for energy sector supply chains.