Memory Makers Drive Semiconductor Market Growth in Q1 2024 as AI Demand Soars
August 7, 2024 | IDCEstimated reading time: 1 minute
Latest research from IDC, titled Worldwide Semiconductor Integrated Device Manufacturing Market: Top 10 Vendor Ranking and Insight, 1Q24, reveals significant trends in the semiconductor industry during the first quarter of 2024. The report highlights the normalization of memory applications and inventory levels, driven by a stabilizing device market and the demand for AI training and inference in data centers. This recovery follows the fading of the COVID-19 pandemic. This normalization propelled the development of the integrated device manufacturing (IDM) market in the first quarter of 2024 (1Q24), where high-bandwidth memory (HBM) played a pivotal role.
The growing demand of HBM, priced four to five times higher than traditional memory, squeezed the capacity of DRAM in the device market and pushed up its price, significantly boosting the overall memory market revenue. Meanwhile, newly released AI PCs and AI smartphones required more memory content than traditional devices, which also drove the development of the memory market. Three of the top five IDM vendors for this quarter were memory-related, capturing nearly half of the top 10 vendors' revenue.
The top 10 vendors were Samsung, Intel, SK Hynix, Micron, Infineon, Texas Instruments, STMicroelectronics, NXP, Sony, and Murata. With the rising demand for AI in datacenters and the device market, memory is projected to remain an important driver for the development of the IDM in the second half of 2024 (2H24):
Computing remained the leading IDM application field in 1Q24, accounting for 35% of the total share, up from 29% in the same period last year. It was followed by the wireless communication market. The automotive market showed signs of sluggishness under the weight of mounting chip inventories, while the industrial market focused on de-inventory as customers double-ordered and stockpiled goods in response to the supply chain disruptions in the previous year. As a result, these two markets saw a sharp drop in their share compared to the same period last year. They are forecast to prioritize inventory adjustment in 1H24 and witness a rebound in the third quarter.
"In 2024, memory makers will continue to be key players in the global IDM market. As inventory levels gradually normalize, the demand in the automotive and industrial fields is projected to rebound in the second half of the year, which will contribute to the growth of the IDM market," said Helen Chiang, Head of Semiconductor Research, IDC Asia/Pacific.
Testimonial
"We’re proud to call I-Connect007 a trusted partner. Their innovative approach and industry insight made our podcast collaboration a success by connecting us with the right audience and delivering real results."
Julia McCaffrey - NCAB GroupSuggested Items
Federal Electronics Mexico Boosts Speed and Flexibility with New Mycronic A40DX Pick-and-Place
07/23/2025 | Federal ElectronicsFederal Electronics, a leader in providing advanced electronic manufacturing services, has announced a major upgrade at its Hermosillo, Mexico facility with the installation of a Mycronic MYPro A40DX Pick-and-Place system, advancing its surface mount assembly capabilities for high-reliability electronics manufacturing.
DuPont Publishes 2025 Sustainability Report
07/22/2025 | PRNewswireDuPont published its 2025 Sustainability Report detailing the progress made toward achieving its 2030 Sustainability Goals.
NEOTech’s Westborough Facility Achieves AS9100 Surveillance Audit, Reinforcing Trust with Aerospace & Defense Customers
07/22/2025 | NEOTechNEOTech, a premier provider of electronic manufacturing services (EMS), integrated design engineering, and advanced supply chain solutions for the aerospace and defense, medical device, and high-tech industrial markets, proudly announces that its Westborough, Massachusetts facility has successfully completed the rigorous AS9100 Bi-Annual Surveillance Audit with zero findings, a testament to the company’s unwavering commitment to quality, security, and operational excellence.
PCBAA Wins Summit Silver Award from the American Society of Association Executives
07/18/2025 | PCBAAPCBAA was one of 38 associations that earned Silver Awards for outstanding contributions for an entry titled: Chips Don’t Float: More Printed Circuit Boards Must be Made in America.
INSPECTIS AB ‘Makes it a Meal’ with Series U50s Advanced Kit
07/18/2025 | INSPECTIS ABFamous chefs the world over maintain that an entrée doesn’t make a great meal without side dishes. At INSPECTIS, we call those ‘sides’ an Advanced Kit.