TechNews on May 16th, the semiconductor industry organization SEMI recently stated that according to a research report co-authored with the analysis agency TechInsights, the global semiconductor industry is showing signs of recovery in the first quarter of 2024, with stronger growth expected in the second half of the year.
In specific, global electronic product sales in the first quarter increased by 1% year-on-year, and it is expected that this growth will reach 5% in the second quarter; global first-quarter IC sales surged by 22% year-on-year, and it is expected to roughly maintain this year-on-year growth rate at 21% in the second quarter.
This is mainly due to the increase in HPC chip shipments and continued improvement in storage product prices. IC inventory levels stabilized in the first quarter of 2024 and are expected to improve this quarter.
As for upstream wafer fabs, the research report estimates that quarterly capacity will continue to exceed 40 million 12-inch wafer equivalents. Wafer capacity increased by 1.2% in the first quarter, slightly increasing to 1.4% in the second quarter; geographically, China remains the most important contributor to growth.
However, wafer fabs, especially mature process wafer fabs, still raise concerns about utilization rates, with no signs of recovery in the first half of the year. The capacity utilization rate in the storage industry in the first quarter was also lower than expected, mainly due to strict supply from storage OEMs.
The semiconductor industry maintained a conservative attitude towards capital expenditure in the first quarter, with related expenditures falling by 11%, but this trend is expected to reverse in the second quarter. Overall, capital expenditures in the storage semiconductor sector outperformed other sectors, with an estimated 8% growth in the second quarter.
Boris Metodiev, Market Analysis Director at TechInsights, said, The semiconductor demand in the first half of 2024 is mixed: memory and logic devices rebounded due to the surge in generative artificial intelligence demand; however, analog, discrete, and optoelectronic devices experienced a slight decline due to slow recovery in the consumer market, coupled with decreasing demand in the automotive and industrial markets.
He added, As artificial intelligence expands to the edge, it is expected to drive consumer demand growth, and a full recovery may occur in the second half of this year; in addition, with declining interest rates and inventory (TapTechNews note: the former can provide consumers with stronger purchasing power), the automotive and industrial markets are expected to resume growth in the second half of this year.