Semiconductor Market: Rebound Expected in 2024, But Challenges Lie Ahead

By Ahmed Ben Slimane, Strategic Semiconductors
EETimes Europe (January 9, 2024)

The semiconductor market faced a slowdown in 2023, with a projected 9% decline compared with 2022. The memory market is particularly hard-hit, with a 37% drop, while the logic, analog and discrete markets have remained relatively flat.

Despite the challenging market conditions in 2023, a 9% to 12% recovery is expected in 2024, driven by strong demand for high-performance computing (HPC) and a soft inventory reduction in wireless communication and smartphones.

Here are some key trends for 2024:

The server market is expected to see an upside trend, driven by artificial-intelligence business. A channel inventory reduction is ongoing.
The telecom market is showing signs of a slowdown, with 5G rollout continuing only in parts of the world. Ericsson and Nokia are expected to continue to compete fiercely for market share against Huawei.
Global consumer confidence remains low, despite a slight improvement in the middle of 2023. This could dampen demand for consumer electronics, but a weak recovery is expected.
There are some initial signs of weakness in the industrial and automotive markets.
Chip-on-Wafer-on-Substrate (CoWoS) is seeing a shortage, with a slight expansion in 2024. The high demand for advanced packaging boosted by AI applications will drive the market to find other solutions in the short term.
The memory market will see significant growth driven by consumer and data center demand and price corrections.

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