In the dynamic world of modern technology, the semiconductor industry stands as a vital pillar, powering an array of devices that have become indispensable in our daily lives. The latest figures from January reveal a significant upward trend in global semiconductor sales, marking a promising start to the year of 2024.
Positive Figure in Chip Sales
According to the Semiconductor Industry Association (SIA), worldwide semiconductor sales experienced a robust 15.2% year-on-year growth in January 2024 with the total sales worth $47.6 billion, in comparison with that in 2023 at $41.3 billion. However, considering the previous month, the global semiconductor growth witnessed a decrease of 2.1% from December 2023 ($48.7 billion)
This surge underscores the resilience and vitality of the semiconductor market despite ongoing challenges from the US- China Semiconductor conflict. According to IDC, the annual semiconductor growth market is expected to recover, reach 20% in 2024
“The global semiconductor market started the new year strong, with worldwide sales increasing year-to-year by the largest percentage since May 2022,” said John Neuffer, SIA president and CEO. He also stated that the market growth is promising throughout 2024, with an annual sales forecast being predicted to in crease double digits.
What “drives” this growth?
Several factors contribute to the semiconductor growth, especially in the implementation of cutting-edge technologies such as artificial intelligence (AI), Internet of Things (IoT), 5G connectivity, and high-performance computing has fueled the demand for semiconductor chips across various sectors. From smartphones to automotive electronics, from data centers to healthcare devices, semiconductors are the foundation, upon which modern innovations thrive.
Specifically, the automotive industry has emerged as a significant driver of semiconductor demand. The integration of advanced driver-assistance systems (ADAS), electric vehicles (EVs), and connectivity features has transformed automobiles into sophisticated computing platforms. Consequently, automotive semiconductor growth sales have witnessed a notable upswing, reflecting the industry’s evolution towards smart, electrified mobility.
In 2027, the ADAS predicted to experience a compound annual growth rate (CAGR) of 19.8% , accounting for 30% of the automotive semiconductor sector. The infotainment industry will be the second lead sector with predicted CAGR reaching 14.6% in 2027, accounting for 20% of the market. As more and more vehicle electronics become dependent on chips, the demand for semiconductor chips will be consistent and long-term.
The semiconductor industry maintains a positive outlook, despite challenges such as geopolitical tensions, trade dynamics, and supply chain constraints. The ongoing chip shortage, exacerbated by disruptions and high demand, highlights the necessity for strategic investments in capacity expansion and innovation. In response, industry stakeholders are intensifying efforts to enhance manufacturing capabilities, promote collaboration in the supply chain, and accelerate technological progress. Initiatives focusing on bolstering domestic production, diversifying sourcing strategies to prevent disruption in the semiconductor supply chain, and investing in R&D aim to strengthen the industry’s resilience and sustainability.
January’s semiconductor growth in sales reflects the industry’s resilience and importance in a digital era. Continued investments, collaboration, and proactive measures will be vital in overcoming future challenges and maximizing the industry’s potential across various sectors in the promising 2024.
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