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Global semiconductor industry anticipated for robust recovery with estimated growth of 13.1% in 2024

Global semiconductor industry anticipated for robust recovery with an estimated growth of 13.1% in 2024, as per WSTS

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Pradeep Chakraborty
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World Semiconductor Trade Statistics (WSTS) recently published its latest forecast for the semiconductor market, generated in November 2023.

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Exceeding the spring projections with slightly better Q2 and Q3 results, WSTS has revised its forecast, anticipating a single-digit contraction in the global semiconductor market of 9.4% in 2023. However, this is anticipated to be followed by a robust recovery, with an estimated growth of 13.1% in 2024.

The updated market valuation for 2023 is now estimated at US$520 billion, marking a 9.4 percent decline from previous year.

Reflecting the stronger performance observed in the last two quarters, WSTS has revised its growth projections slightly upward, noting improvements in certain end-markets. For 2023, discrete semiconductors, primarily propelled by power semiconductors, are projected to experience 5.8% year-over-year growth. However, all integrated circuit categories, including analog, micro, logic, and memory, are anticipated to witness an 8.9% decline compared to the previous year. This downturn, though significant, is less pronounced than initially forecasted in May 2023.

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For the year 2023, only the European market is projected to experience growth, with an increase of 5.9%. Conversely, the remaining regions are anticipated to face a downturn, with the Americas expected to decline by 6.1%, the Asia Pacific region by 14.4%, and Japan by 2%.

Anticipated revival in global semiconductor market for 2024

The outlook for 2024 points to a vigorous upswing in the worldwide semiconductor market, with projections indicating a 13.1% increase, reaching a valuation of US$588 billion. This growth is expected to be largely fuelled by the memory sector, which is on track to soar to around US$130 billion in 2024, representing an upward trend of over 40% from the previous year. The majority of other principal segments, including discrete, sensors, logic, analog, and micro, are also expected to record single-digit growth rates.

From a regional standpoint, all markets are poised for ongoing expansion in 2024. The Americas and Asia Pacific, in particular, are forecast to demonstrate significant double-digit growth on a year-over-year basis.

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