Global Citizenship: Comparing and Contrasting the U.S. and China PCB Industries
Standard of Excellence: Finding and Hiring the Right Candidates for Engineering Positions
Global Sourcing Spotlight: 10 Rules of the Game
Global Semiconductor Manufacturing Industry Strengthens in Q2 2024
August 19, 2024 | SEMIEstimated reading time: 2 minutes
The global semiconductor manufacturing industry in the second quarter of 2024 continued to show signs of improvement with significant growth of IC sales, stabilizing capital expenditure, and an increase in installed wafer fab capacity, SEMI announced in its Q2 2024 publication of the Semiconductor Manufacturing Monitor (SMM) Report, prepared in partnership with TechInsights. While slower recovery in some end markets impacted the pace of growth in the first half of the year, the surge in demand for AI chips and high bandwidth memory (HBM) created strong tailwinds driving industry expansion.
Seasonality and weaker than expected consumer demand impacted electronics sales in the first half of 2024 resulting in a 0.8% decrease year-over-year (YoY). Starting Q3 2024, electronics sales are forecast to see a rebound, growing 4% YoY and 9% relative to Q2 2024. IC sales showed robust 27% YoY growth in Q2 2024 and are further expected to surge 29% in Q3 2024, surpassing record levels seen in 2021 as the AI-fueled demand continues to boost IC sales growth. Improved demand also led to a 2.6% decline YoY in IC inventory levels in the first half of 2024.
Installed wafer fab capacity reached 40.5 million wafers per quarter (in 300mm wafer equivalent) in Q2 2024 and is projected to rise 1.6% in Q3 2024. Foundry and Logic-related capacity showed stronger growth in Q2 2024 at 2.0% and is projected to increase 1.9% in Q3 2024 driven by capacity build-up for advanced nodes. Memory capacity increased 0.7% in Q2 2024 and is forecast to see 1.1% growth in Q3 2024 supported by strong demand for HBM and improving memory pricing conditions. All regions tracked saw installed capacity increases in Q2 2024 with China remaining the fastest growing region despite mediocre fab utilization rates.
Semiconductor capital expenditures remained conservative in the first half of 2024 resulting in a 9.8% decrease YoY. The trend is expected to turn positive starting in Q3 2024 in response to the growing demand for AI chips and rapid adoption of HBM with memory CapEx leading the growth at 16% quarter-on-quarter (QoQ) while non-memory related capital expenditures increase by 6% QoQ.
“Despite moderate semiconductor capital expenditures in the first half of the year, we expect a positive trend to begin in Q3 2024 led by memory CapEx,” said Clark Tseng, Senior Director of Market Intelligence at SEMI. “Strong demand for AI chips and high bandwidth memory is boosting results in various segments of the semiconductor manufacturing ecosystem.”
"The entire semiconductor supply chain is recovering this year as the market prepares for a surge in 2025," said Boris Metodiev, Director of Market Analysis at TechInsights. "AI is certainly continuing to drive high value ICs to the market, while also supporting CapEx for capacity expansion of AI chips and especially HBM. As consumer demand recovers, and new technologies like AI are pushed to the edge, unit volumes and especially revenues will recover and support the broader semiconductor manufacturing sector."
Share on:
Suggested Items
Benchmark Reports Q3 2024 Results; Revenue of $658 Million
10/31/2024 | BenchmarkRevenue decreased quarter over quarter primarily due to decreases in Advanced Computing and Communications (AC&C) sales, which were partially offset by an increase in Semi-Cap sales.
Robots in Logistics Boom Worldwide
10/31/2024 | BUSINESS WIREThe demand for robots for transport and logistics is increasing: Almost 113,000 robots were sold for transport and logistics tasks in 2023 – up 35%. These results are published by VDMA Materials Handling and Intralogistics Association in cooperation with the IFR.
TTM Technologies Reports Q3 2024 Results
10/31/2024 | TTM TechnologiesTTM Technologies, Inc., a leading global manufacturer of technology solutions including mission systems, radio frequency (RF) components and RF microwave/microelectronic assemblies and printed circuit boards (PCBs) reported results for the third quarter 2024, which ended on September 30, 2024.
AT&S Adjusts Outlook for the Current Financial Year 2024/25
10/31/2024 | AT&SFor the 2024/25 financial year, the management assumes that the price pressure and volatile ordering behaviour of a key customer will continue.
Fresh PCB Concepts: The Critical Nature of Copper Thickness on PCBs
10/31/2024 | Team NCAB -- Column: Fresh PCB ConceptsPCBs are the backbone of modern electronics and the copper layers within these boards serve as the primary pathways for electrical signals. When designing and manufacturing PCBs, copper thickness is one of the most critical factors and significantly affects the board’s performance and durability. The IPC-6012F specification, the industry standard for the performance and qualification of rigid PCBs, sets clear guidelines on copper thickness to ensure reliability in different environments and applications.