Global Semiconductor Manufacturing Industry Poised for 2024 Recovery, SEMI Reports
February 15, 2024 | SEMIEstimated reading time: 1 minute
The global semiconductor manufacturing industry recovery is taking hold with electronics and IC sales increasing in the final quarter of 2023 and more growth projected for 2024, SEMI announced in its fourth quarter 2023 publication of the Semiconductor Manufacturing Monitor (SMM) report, prepared in partnership with TechInsights.
In Q4 2023, electronics sales edged up 1% Year-over-Year (YoY), marking the first annual rise since the second half of 2022, and growth is projected to continue in Q1 2024 with a 3% YoY increase. At the same time, IC sales returned to growth with a 10% YoY jump in Q4 2023 as demand improved and inventories started to normalize. IC sales are forecast to strengthen in Q1 2024 with 18% YoY growth.
Capital expenditures and fab utilization rates are expected to see a mild recovery starting in Q1 2024 after significant declines in the second half of 2023.
In Q1 2024, Memory CapEx is projected to increase 9% Quarter-on-Quarter (QoQ) and 10% YoY, while Non-Memory CapEx is on track to climb 16% during the quarter but remain at lower levels than recorded in Q1 2023. Fab utilization rates saw a modest improvement from 66% in Q4 2023 to 70% in Q1 2024. Meanwhile, fab capacity grew 1.3% in Q4 2023 and is projected to match those gains in Q1 2024.
Equipment billings in 2023 surpassed projections though growth is expected to be muted in the first half of 2024 mostly due to seasonality.
“The electronics and IC markets are recovering from a slump in 2023 with growth expected this year,” said Clark Tseng, Senior Director of Market Intelligence at SEMI. “Although fab utilization remains low at the moment, improvement as 2024 unfolds is anticipated.”
“Semiconductor demand is well on its way in the recovery,” said Boris Metodiev, Director of Market Analysis at TechInsights. “While the overall IC market is growing this year, slowing automotive and industrial markets are hampering the analog expansion. AI will be a huge catalyst for leading-edge semiconductors as the technology proliferates from the cloud to the edge. At the same time, geopolitics is driving excess capacity at the trailing edge.”
Testimonial
"In a year when every marketing dollar mattered, I chose to keep I-Connect007 in our 2025 plan. Their commitment to high-quality, insightful content aligns with Koh Young’s values and helps readers navigate a changing industry. "
Brent Fischthal - Koh YoungSuggested Items
Datest Unveils Viscom iX7059 XL 3D CT AXI System
08/25/2025 | DatestDatest, a trusted leader in advanced testing, engineering, inspection, and failure analysis services, and the go-to destination for when your boards misbehave and your AXI line goes on vacation, is thrilled to announce the arrival of its newest diagnostic weapon: the Viscom iX7059 XL 3D CT AXI Inspection System.
Polar Instruments Announces Additive Transmission Line Support for Si9000e
08/20/2025 | Polar InstrumentsTransmission lines embedded into the PCB surface are a feature of UHDI constructions. The 2025 fall release of Polar's Si9000e PCB impedance & insertion loss transmission line field solver incorporates eight new single ended, differential and coplanar transmission line structures.
Axxon-Mycronic Brings High-Performance Conformal Coating to productronica India 2025
08/20/2025 | Axxon-MycronicAxxon-Mycronic, a leading, global supplier of innovative and production-ready, dispensing and conformal coating systems, is pleased to announce its participation in productronica India 2025, taking place September 17–19 at the Bangalore International Exhibition Centre (BIEC).
The Marketing Minute: Staying Positive When the Market Isn’t
08/20/2025 | Brittany Martin -- Column: The Marketing MinuteIn today’s volatile electronics market, buffeted by tariffs, supply-chain shifts, and squeezed margins, it’s tempting to tighten belts and cut your marketing budget. But history shows us that the quietest brands get forgotten fastest. Staying visible is not a luxury; it’s a competitive advantage.
Eltek Ltd. Reports Strong Second-Quarter 2025 Results
08/14/2025 | PR NewswireEltek Ltd., a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), today announced its financial results for the quarter ended June 30, 2025.