Anticipate a robust resurgence in the global semiconductor sales market come 2024, fueled by a projected 20 percent annual growth rate, as outlined in a recently unveiled report.
The escalating worldwide appetite for artificial intelligence (AI) and high-performance computing (HPC), coupled with a stabilizing demand for smartphones, personal computers, infrastructure, and unwavering growth in the automotive sector, positions the semiconductor industry for a transformative phase, asserts the latest research from IDC.
The spectrum of semiconductor products encompasses logic integrated circuits (IC), analog IC, microprocessor and microcontroller IC, along with memories.
Galen Zeng, Senior Research Manager of Semiconductor Research at IDC Asia/Pacific, commented on the trend, noting, "Memory manufacturers' stringent control over supply and output has instigated price hikes since the beginning of November. The burgeoning demand for AI across diverse applications is primed to propel the overall semiconductor sales market to a rebound in 2024."
Zeng further predicts a turnaround for the semiconductor supply chain, spanning design, manufacturing, packaging, and testing, bidding farewell to the downturn in 2023.
While the automotive market maintains its resilient growth, the trajectory toward automotive intelligence and electrification emerges as a pivotal driver for the future semiconductor market.
The Advanced Driver Assistance Systems (ADAS) claims the lion's share of the automotive semiconductor market, with a projected Compound Annual Growth Rate (CAGR) of 19.8 percent by 2027, constituting 30 percent of the market that year.
Following closely is the Infotainment sector, securing the second-largest share, with a CAGR of 14.6 percent by 2027, representing 20 percent of the market in that year, propelled by automotive intelligence and connectivity.
The report emphasizes the increasing reliance on chips in automotive electronics, asserting that the demand for semiconductors will be enduring and stable.
As semiconductor technology advances, the integration of more AI functions into personal devices is foreseen to commence in 2024. AI-driven smartphones, AI-powered PCs, and AI-enabled wearable devices are poised for gradual market introduction.
The IDC report envisions a proliferation of innovative applications for personal devices following the integration of AI, thereby stimulating a positive surge in demand for semiconductors and advanced packaging.
(With Agency Inputs)
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