The Right Approach: Get Ready for ISO 9001 Version 6
Dan’s Biz Bookshelf: ‘Still Broke: Walmart’s Remarkable Transformation'
Driving Innovation: Depth Routing Processes—Achieving Unparalleled Precision in Complex PCBs
Global Semiconductor Manufacturing Industry Records Strong Growth in Q3 2024
November 20, 2024 | SEMIEstimated reading time: 3 minutes
The global semiconductor manufacturing industry in the third quarter of 2024 showed strong momentum with all key industry indicators performing positive quarter-on-quarter (QoQ) increases for the first time in two years, SEMI announced in its Q3 2024 publication of the Semiconductor Manufacturing Monitor (SMM) Report, prepared in partnership with TechInsights. The growth is fueled by seasonal factors and strong demand from investments in AI data centers, however, the consumer, automotive, and industrial segments are experiencing a slower pace of recovery. The growth trend is expected to continue into the fourth quarter of 2024.
After declining in the first half of 2024, electronic sales rebounded in Q3 2024, growing 8% QoQ, with a projected QoQ increase of 20% in Q4 2024. IC sales also rose by 12% QoQ in Q3 2024 and are expected to grow another 10% in Q4 2024. Overall, IC sales are forecasted to increase over 20% in 2024, primarily driven by memory products due to price improvement across the board and strong demand for data center memory chips.
Similar to the electronics sales, semiconductor capital expenditures (CapEx) decreased in the first half of 2024, but the trend is turning positive starting in Q3 2024. Memory-related CapEx is surging 34% QoQ and 67% year-on-year (YoY) in Q3 2024 reflecting improvement in the memory IC market compared to the same period of the last year. In Q4 2024, total CapEx is expected to jump 27% relative to Q3 2024 levels and 31% YoY, with memory-related CapEx leading this growth at 39% YoY.
The semiconductor capital equipment segment remains strong and is performing better than previously expected due to substantial investments from China and increased spending for high-bandwidth memory and advanced packaging. Wafer Fab Equipment (WFE) spending increased 15% YoY and 11% QoQ in Q3 2024. China's investment continues to play a significant role in the WFE market. Additionally, both the Test and the Assembly and Packaging segments experienced impressive YoY increases of 40% and 31%, respectively, in Q3 2024, and this growth is anticipated to continue for the remainder of the year.
In Q3 2024, installed wafer fab capacity reached 41.4 million wafers per quarter (in 300mm wafer equivalent) and is projected to rise by 1.6% in Q4 2024. Foundry and Logic-related capacity continues to show stronger increases, growing 2.0% in Q3 2024 and is projected to rise 2.2% in Q4 2024 driven by capacity expansion for both advanced and mature nodes. Memory capacity increased 0.6% in Q3 2024 and is forecasted to maintain the same pace of growth in Q4 2024. This growth is driven by strong demand for high bandwidth memory (HBM) but is partially offset by process node transitions.
"The semiconductor capital equipment segment continues to exhibit growth momentum, bolstered this year by strong investments from China and increased spending on advanced technologies," said Clark Tseng, Senior Director of Market Intelligence at SEMI. "Additionally, the continued expansion of fab capacity, especially in the foundry and logic segments, underscores the industry's commitment to meeting the growing demand for advanced semiconductor technologies."
"2024 has shown two sides within the semiconductor industry," said Boris Metodiev, Director of Market Analysis at TechInsights. "While consumer, automotive, and industrial markets have struggled, AI has thrived, boosting average selling prices in memory and logic products. As interest rates decrease heading into 2025, consumer sentiment is expected to improve, encouraging larger purchases and supporting both the consumer and automotive markets."
The Semiconductor Manufacturing Monitor (SMM) report provides end-to-end data on the worldwide semiconductor manufacturing industry. The report highlights key trends based on industry indicators including capital equipment, fab capacity, and semiconductor and electronics sales, and includes a capital equipment market forecast. The SMM report also contains two years of quarterly data and a one-quarter outlook for the semiconductor manufacturing supply chain including leading IDM, fabless, foundry, and OSAT companies. An SMM subscription includes quarterly reports.
Share on:
Testimonial
"The I-Connect007 team is outstanding—kind, responsive, and a true marketing partner. Their design team created fresh, eye-catching ads, and their editorial support polished our content to let our brand shine. Thank you all! "
Sweeney Ng - CEE PCBSuggested Items
EV Group Achieves Breakthrough in Hybrid Bonding Overlay Control for Chiplet Integration
09/12/2025 | EV GroupEV Group (EVG), a leading provider of innovative process solutions and expertise serving leading-edge and future semiconductor designs and chip integration schemes, today unveiled the EVG®40 D2W—the first dedicated die-to-wafer overlay metrology platform to deliver 100 percent die overlay measurement on 300-mm wafers at high precision and speeds needed for production environments. With up to 15X higher throughput than EVG’s industry benchmark EVG®40 NT2 system designed for hybrid wafer bonding metrology, the new EVG40 D2W enables chipmakers to verify die placement accuracy and take rapid corrective action, improving process control and yield in high-volume manufacturing (HVM).
ROHM Develops Ultra-Compact CMOS Op Amp: Delivering Industry-Leading Ultra-Low Circuit Current
09/11/2025 | ROHMROHM’s ultra-compact CMOS Operational Amplifier (op amp) TLR1901GXZ achieves the industry’s lowest operating circuit current.
I-Connect007 Launches New Podcast Series on Ultra High Density Interconnect (UHDI)
09/12/2025 | I-Connect007I-Connect007 is excited to announce the debut of its latest On the Line With... podcast series, which shines a spotlight on one of the most important emerging innovations in electronics manufacturing: Ultra-High-Density Interconnect (UHDI).
I-Connect007 Launches New Podcast Series on Ultra High Density Interconnect (UHDI)
09/10/2025 | I-Connect007I-Connect007 is excited to announce the debut of its latest podcast series, which shines a spotlight on one of the most important emerging innovations in electronics manufacturing: Ultra-High-Density Interconnect (UHDI). The series kicks off with Episode One, “Ultra HDI: What does it mean to people? Why would they want it?” Host Nolan Johnson is joined by guest expert John Johnson, Director of Quality and Advanced Technology at American Standard Circuits (ASC).
KYZEN to Feature High-Reliability MICRONOX Chemistries at IMAPS Symposium
09/10/2025 | KYZEN'KYZEN, the global leader in innovative environmentally responsible cleaning chemistries, is pleased to announce its participation at the International Symposium on Microelectronics or IMAPS Symposium, taking place September 29-October 3 at Town & Country Resort in San Diego, CA.