Anticipated Rebound: Global Chip Sales Set to Soar in 2024
The Semiconductor Industry Association (SIA) has recently disclosed its annual sales data, unveiling a promising forecast for the global chip market. Projections indicate a substantial 13.1% surge in sales, reaching a total of $595.3 billion. This optimistic outlook follows a challenging year in 2023, characterized by an approximate 8% decline in sales.
According to SIA Chief Executive John Neuffer, the resurgence in global sales can be attributed to the robust demand for artificial intelligence (AI) and the consistent rise in automotive utilization. Neuffer underscores the strength of the AI market, highlighting numerous positive developments across the industry.
Despite a sluggish start for auto chips in the beginning of the year, SIA Director of Industry Statistics and Economic Policy, Robert Casanova, anticipates a 6% growth in this segment. This positive trajectory aligns with the overall industry rebound.
Industry Challenges: Reflections on 2023
The preceding year posed challenges for chipmakers such as Intel and Qualcomm, as weak demand for PCs and smartphones impacted their sales. While “logic” chip sales experienced a modest 1.1% increase, reaching $178.5 billion, memory sales faced a significant decline, plummeting by 29% to $92.3 billion — marking the second-largest category tracked by SIA.
The current surge in demand for AI, driven by tech giants striving to deliver advanced products and services, has significantly influenced the market. Companies like Nvidia are witnessing heightened demand for their advanced chips as cloud computing entities aim to expand their capacity for running AI software.
AI applications, known for their reliance on graphics processing units (GPUs), necessitate the integration of various types. These include high-bandwidth memory from suppliers like SK Hynix, along with speedy networking processors to facilitate efficient data movement within AI systems. The convergence of these factors is expected to contribute to the noteworthy rebound in global chip sales projected for the year ahead.
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