In the context of the gradual recovery of the global economy, the semiconductor industry has ushered in a strong growth momentum. According to data from the Semiconductor Industry Association (SIA), global semiconductor sales soared to $166 billion in the third quarter of 2024, up 23.2% year-on-year and 10.7% quarter-on-quarter. This significant growth not only reflects the recovery of the industry, but also demonstrates the continued drive of technological advancements and market demand. China Exportsemi analyzes the main drivers behind this growth and explores its potential far-reaching impact on global economic and technological development.
1. Growth drivers
The growth of the global semiconductor market is partly due to the accelerated adoption of artificial intelligence (AI) technologies. In particular, large AI models such as ChatGPT have driven the strong demand for AI chips, which has become an important driving force for the growth of the market. In addition, with the gradual recovery of the global market, major industry analysts have also issued optimistic expectations. According to WSTS's forecast, the global semiconductor market is expected to grow by 13.1% year-on-year in 2024, and the total market size will reach a record $588.36 billion.
Figure: The global semiconductor market sales surged 23.2% to $166 billion in Q3 2024
2. Regional differentiation performance
Geographically, semiconductor sales in the Americas, China, the rest of Asia-Pacific and Japan all increased year-on-year, while the European market declined. This shows that there are big differences in the speed of market recovery in different regions. Among them, the Chinese market led the world with a year-on-year growth of 27.4%, demonstrating China's important position in the global semiconductor consumer market.
3. Technological progress and talent competition
Technological innovation has been a core driver of growth in the semiconductor industry. China's rise in the global semiconductor industry, especially in the field of high-end chip design, Chinese technology talents occupy an important position among many leading enterprises, becoming a key force supporting the development of the global semiconductor industry. Chinese mainland's semiconductor industry is also narrowing the technology gap with global leaders by attracting high-end talent. Yin Zhiyao, chairman of China Micro Semiconductor Equipment Co., Ltd., pointed out that despite the technology gap, China is expected to catch up in the next 5 to 10 years.
4. Domestic substitution and supply chain resilience
In the global semiconductor market, the trend of domestic substitution is becoming increasingly obvious. With the recovery of China's semiconductor industry, the recovery momentum of the Chinese market is also becoming stronger, which highlights the important position of domestic substitution in the global semiconductor industry. Industry experts suggest that semiconductor companies should actively promote upstream and downstream cooperation, promote the construction of a localized ecosystem, and improve the resilience and self-sufficiency of local supply chains, so as to enhance their ability to cope with market fluctuations.
5. Challenges in the automotive chip market
Despite the strong overall growth of the global semiconductor market, the automotive and industrial chip markets are facing significant challenges. A number of chip companies have expressed caution about the prospects of the automotive market. Companies such as NXP, STMicroelectronics, and ON Semi have noted that demand remains weak in the automotive and industrial markets. This phenomenon reflects the uncertainty that still faces specific areas behind the overall growth of the semiconductor industry. In the future, the industry needs to pay close attention and adjust its strategy in time to respond to changes in the market.
6. Conclusions and outlook
Overall, the global semiconductor market is showing strong growth momentum. However, challenges in regional differences, technological competition, and market segmentation remain. With the rapid development of AI technology and the advancement of domestic substitution, the semiconductor industry is expected to continue to grow, especially in the fields of consumer electronics and cloud computing. Despite the pressure on the automotive chip market, the continuous expansion of AI technology applications and the recovery of the global market still provide new growth momentum for the semiconductor industry.
Through the analysis of the latest data, technological progress, talent competition, domestic substitution trends and industry challenges in the global semiconductor market, this paper provides a multi-dimensional perspective for an in-depth understanding of the current semiconductor market situation. At the same time, with the continuous advancement of technological innovation, the global semiconductor industry will continue to play an important role in promoting global economic recovery and technological progress in the future.
