With the acceleration of global digital transformation semiconductor as the core of modern technology, its market demand continues to grow. According to data released by the U.S. Semiconductor Industry Association (SIA), the global semiconductor industry sales in 2024 totaled $46.2 billion, an increase of 16.3% over the $39.7 billion in February 2023, but a decline of 3.1% January 2024 totaled $47.6 billion. Record May 2022 since nearly 23 months of the largest single-month increase. This data not only shows the strong market demand for the semiconductor industry, but also heralds a solid growth trend for the industry as a whole.
"Although year-over-year sales were down slightly, global semiconductor sales in February were still well ahead of last year's total for the same month, continuing the strong year-over-year growth the market has seen since the middle of last year," said SIA's president and CEO. "February's year-over-year sales growth was the largest percentage increase since May 2022, and market growth is expected to continue for the remainder of the year." Regionally, year-over-year sales increased in other regions such as China, the Americas and Asia-Pacific, but declined year-over-year in Europe and Japan.
The global semiconductor industry has experienced a period of volatility over the past year, with total sales declining throughout 2023. However, since the second half of 2023, the market has begun to gradually rebound, setting the stage for growth in 2024. Analysts point out that this warming trend is due to several factors, including seasonal adjustments, optimization of inventory levels, and increased demand for emerging technologies.
In particular, demand for semiconductors has exploded in the areas of artificial intelligence and high-performance computing. As AI technology continues to advance, more and more AI functions are being integrated into personal terminals, such as smartphones, personal computers, and wearable devices. These personal terminals, augmented by AI technology, are expected to lead to more innovative applications, thereby further driving the growth in demand for semiconductors.
In addition, the foundry industry also started to recover gradually in the second half of 2023 after experiencing inventory adjustments in the market in 2023. The capacity utilization rate of 12-inch fabs was boosted with the rebound in demand for consumer electronics and the explosion in demand for AI technology. The foundry industry is expected to realize double-digit growth in 2024, further boosting the overall development of the semiconductor industry.
Despite the many challenges facing the global economy, such as poor purchasing power demand and inflation, the long-term growth trend of the semiconductor industry has not changed. Market analysts have generally given a year-on-year rise in expectations, with the most optimistic forecasts even exceeding 20% growth. This expectation reflects the industry's confidence in the future development of the semiconductor industry.
In summary, the significant growth in global semiconductor sales in 2024 is not only a positive signal of market demand for the semiconductor industry, but also paints an optimistic picture of the industry's future development. With advances in technology and expanding market demand, the semiconductor industry is expected to continue to grow at a steady pace in the coming years, providing strong support for global technological development.
