IDC: semiconductor sales will grow 20% in 2024

General | December 27, 2023                   

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The squeeze is over and the global semiconductor market will bounce back strongly next year, says market analyst IDC.

According to IDC’s latest research, demand for artificial intelligence (AI) and high-performance computing (HPC) is exploding. And this, combined with a more buoyant market for smartphones, PCs, infrastructure, and automotive will trigger an annual growth rate of 20% in semiconductors next year.

This prediction is one of IDC eight forecasts for the market in 2024. The others are:

• ADAS (Advanced Driver Assistance System) and infotainment will drive a strong automotive semiconductor market 
• Semiconductor AI applications will spread from data centres to personal devices
• Asia's IC design market will grow by 14% in 2024
• The global semiconductor foundry industry will grow in double-digits 
• Chinese preferential pricing will put pressure on "non-Chinese" foundries
• The CAGR of 2.5/3D packaging market is expected to be 22% from 2023 to 2028
• The capacity of CoWoS will increase by 130% by the second half of 2024, and more vendors will actively enter the supply chain.

“Memory manufacturers' strict control of supply and output has led to increasing prices from the start of November, and the demand for AI across all major applications will drive the overall semiconductor sales market to recover in 2024. The semiconductor supply chain, including design, manufacturing, packaging, and testing, will bid farewell to the downturn in 2023,” says Galen Zeng, Senior Research Manager, Semiconductor Research, IDC Asia/Pacific.