MILPITAS, Calif., May 14, 2024 /PRNewswire/ -- The global
semiconductor manufacturing industry in the first quarter of 2024
showed signs of improvement with an uptick in electronic sales,
stabilizing inventories and an increase in installed wafer fab
capacity, SEMI announced today in its Q1 2024 publication of the
Semiconductor Manufacturing Monitor (SMM) Report, prepared in
partnership with TechInsights. Stronger industry growth is expected
in the second half of the year.
In Q1 2024, electronic sales rose 1% year-over-year (YoY), with
Q2 2024 forecast to register a 5% YoY increase. IC sales posted
robust 22% YoY growth in Q1 2024 and are expected to surge 21% in
Q2 2024 as shipments of high-performance computing (HPC) chips
increase and memory pricing continues to improve. IC inventory
levels stabilized in Q1 2024 and are expected to improve this
quarter.
Installed wafer fab capacity continues to increase and is
projected to exceed 40 million wafers per quarter (in 300mm wafer
equivalent), rising 1.2% in Q1 2024 with an expected 1.4% uptick in
Q2 2024. China continues to log
the highest capacity growth among all regions. However, fab
utilization rates, particularly for mature nodes, remain a concern
with little signs of recovery expected in the first half of 2024.
Memory utilization rates were lower than expected in Q1 2024 due to
disciplined supply control.
In line with fab utilization trends, semiconductor capital
expenditures remain conservative. After falling 17% YoY in Q4 2023,
capital expenditures continued to pull back 11% in Q1 2024 before
eking out an expected 0.7% gain in Q2 2024. Sequentially in Q2
2024, the trend is turning positive with an expected 8% increase in
memory-related capital expenditures as they see slightly stronger
growth than non-memory segments.
"Demand in some semiconductor segments is recovering, but the
pace of recovery is uneven," said Clark
Tseng, Senior Director of Market Intelligence at SEMI. "AI
chips and high-bandwidth memory are currently among devices in the
highest demand, leading to increased investment and capacity
expansion in these areas. However, the impact of AI chips on IC
shipment growth remains limited due to their reliance on a small
number of key suppliers."
"Semiconductor demand in the first half of 2024 is mixed, with
memory and logic rebounding due to surging generative AI demand,"
said Boris Metodiev, Director of
Market Analysis at TechInsights. "However, analog, discrete, and
optoelectronics have experienced a slight correction due to the
slow recovery of the consumer market coupled with a pullback in
demand from the automotive and industrial markets."
"A full-on recovery is likely to take hold in the second half of
the year with the projected boost in consumer demand by AI's
expansion to the edge," Metodiev said. "Additionally, the
automotive and industrial markets are expected to return to growth
in the latter part of the year as interest rates fall – providing
consumers more purchasing power – and inventory declines."
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.
Download a sample Semiconductor Manufacturing Monitor
report.
For more information on the report or to subscribe, please
contact the SEMI Market Intelligence Team
at mktstats@semi.org. Details on SEMI market data are
available at SEMI Market Data.
About SEMI
SEMI® is the global industry association
connecting over 3,000 member companies and 1.5 million
professionals worldwide across the semiconductor and electronics
design and manufacturing supply chain. We accelerate member
collaboration on solutions to top industry challenges through
Advocacy, Workforce Development, Sustainability, Supply Chain
Management and other programs. Our
SEMICON® expositions and events, technology
communities, standards and market intelligence help advance our
members' business growth and innovations in design, devices,
equipment, materials, services and software, enabling smarter,
faster, more secure electronics. Visit www.semi.org, contact a
regional office, and connect with SEMI
on LinkedIn and X to learn more.
Association Contact
Michael Hall/SEMI
Phone: 1.408.943.7988
Email: mhall@semi.org
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