Total semiconductor revenue expected to reach $624 billion in 2024
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International Electronics Business News on the 5th According to the latest report released by a market research agency on Monday, global semiconductor revenue is expected to grow by 16.8% in 2024, reaching US$624 billion.
According to the latest forecast from market research agency Gartner, global semiconductor revenue is expected to decline by 10.9% in 2023 to US$534 billion. This market will grow by 16.8% in 2024, reaching US$624 billion.
"We have reached the end of 2023, and strong demand for chips that support artificial intelligence (AI) workloads such as graphics processing units (GPUs) will not be enough to save the semiconductor industry from a double-digit decline in 2023," Gartner vice president analyst Alan Priestley said. "Reduced demand from smartphone and PC customers, combined with softer data center/hyperscale spending, is impacting revenue declines this year."
However, 2024 is expected to be a rebound year, with revenue growing across all chip types driven by double-digit growth in the memory market (see Figure 1).
Memory revenue to rebound in 2024 after double-digit decline
The agency predicts that the global memory market will decline by 38.8% in 2023 and rebound by 66.3% in 2024.
Lower pricing due to weak demand and massive oversupply will result in a 38.8% decline in NAND flash revenue, which will fall to $35.4 billion in 2023. In the next 3-6 months, NAND industry pricing will bottom out and suppliers' conditions will improve. Gartner analysts predict a strong recovery in 2024, with revenue growing to $53 billion, a year-on-year increase of 49.6%.
Due to severe oversupply and insufficient demand, DRAM manufacturers have lowered market prices to reduce inventory. Oversupply in the DRAM market will continue through the fourth quarter of 2023, which will trigger a price rebound. However, the full impact of the price increase will not be felt until 2024, when DRAM revenue is expected to grow 88% to $87.4 billion.
Reposted from: International Electronic Commerce, automatically translated by Google
