2024 Q1 Semiconductor Industry Shows Recovery

Semiconductor industry sees recovery in Q1 2024 with increased sales and projections for stronger growth.

The semiconductor industry showed signs of recovery in the first quarter of 2024, according to a report by SEMI and TechInsights.

The first quarter witnessed a 1% year-over-year increase in global electronic product sales, which is expected to rise to 5% in the second quarter.

Moreover, the global IC sales soared by 22% compared to the same period last year, with projections of maintaining a 21% growth in the second quarter.

Increased shipments of HPC chips and continuous improvements in storage product prices contributed to this surge. IC inventory levels stabilized in Q1 and are expected to improve further during the quarter.

Wafer fab output is also projected to exceed 40 million 12-inch equivalents in the coming quarters. China continues to be a significant contributor to this growth.

However, the utilization rates at mature process wafer fabs remain a concern, with no signs of recovery expected in the first half of the year.

The capacity utilization rate in the storage industry was also lower than anticipated, mainly due to strict supply controls by the original manufacturers.

Capital expenditure in the semiconductor industry remained cautious in Q1, with an 11% decrease, but this trend is expected to reverse in Q2. The storage semiconductor sector, in particular, is projected to see an 8% increase in capital expenditure.

Boris Metodiev from TechInsights stated that the demand for semiconductors in the first half of 2024 was mixed.

Memory and logic devices saw a rebound due to a surge in demand for generative AI, while recovery in the consumer market was slow, leading to a decline in demand for analog, discrete, and optoelectronic devices.

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With AI expanding to the edge, an increase in consumer demand is anticipated, potentially leading to a comprehensive recovery later this year.

Additionally, lower interest rates and inventory levels could boost the automotive and industrial markets in the latter half of 2024.

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2024 Q1 Semiconductor Industry Shows Recovery

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