22 Aug 2023 -

Semiconductor industry expected to rally – SEMI


The global semiconductor industry is nearing the end of its down-cycle and is expected to start recovering in 2024. This is according to the latest Manufacturing Monitor report from SEMI, which found that the sequential decline in IC sales is beginning to slow.

The report predicts that electronics sales will achieve a healthy 10% quarter-on-quarter growth in the third quarter of 2023, while memory IC sales are expected to record double-digit growth for the first time since the downturn began in the third quarter of 2022. Logic IC sales are expected to remain stable and improve as demand gradually recovers.

However, the report also warns that the semiconductor manufacturing industry will continue to face challenges in the second half of the year. High inventory levels at integrated device manufacturers (IDMs) and fabless companies will continue to suppress fab utilisation rates, which will in turn lead to declines in capital equipment billings and silicon shipments.

Despite these challenges, market indicators point to a bottoming out of the semiconductor industry in the second half of 2023. This will pave the way for a recovery in 2024, when all segments of the industry are expected to grow year-on-year, with electronics sales surpassing their 2022 peak.

The recovery of the semiconductor industry will be driven by a number of factors, including the continued growth of the automotive and industrial sectors, the increasing demand for data-intensive applications, and the need to upgrade to more advanced semiconductor technologies.

The recovery of the semiconductor industry is good news for the global economy, as it will help to boost investment and innovation.

Overall, the outlook for the semiconductor industry is positive. The industry is expected to recover in 2024 and continue to grow in the years to come.

For more help with looking at supply chain options, contact Astute Electronics

Related News

10 Jul 2024 - General

Counterfeit GPUs on the Rise: A Growing Concern for the Electronics Industry

Read more

09 Jul 2024 - General

DRAM Prices Skyrocket Amidst AI Boom and Production Shifts: A Deep Dive into the Memory Market

Read more

08 Jul 2024 - General

US Government Invests in Semiconductor Workforce to Combat Looming Talent Crisis, But Challenges Remain

Read more

07 Jul 2024 - General

Semiconductor Manufacturing Equipment Sales Expected to Explode

Read more

05 Jul 2024 - General

US attracting ‘insane’ money into building chip manufacturing

Read more

04 Jul 2024 - General

Vietnam: caught in the crossfire of US-China tech rivalry

Read more