SEMI predicts that the global semiconductor industry is expected to recover in 2024

Recently, the International Semiconductor Industry Association (SEMI), representing the global supply chain for electronic product design and manufacturing, unveiled a new report. It posits that as the downturn in IC sales begins to decelerate, the global semiconductor industry appears to be nearing the denouement of its bearish cycle, anticipating a renaissance by 2024.

As per a report from TechPowerup, recent analyses suggest that electronic product sales in the third quarter of 2023 are poised for a 10% sequential uptick. Furthermore, memory sales are slated to witness their maiden double-digit surge since their nadir in the third quarter of 2022. With a gradual resurgence in market demand, sales of logical ICs are expected to remain steadfast with a semblance of amelioration.

Indeed, the contemporary phase of the semiconductor manufacturing sector continues to grapple with an array of challenges, such as lingering elevated inventory levels and suboptimal operational rates at wafer fabrication plants. The pressures endured throughout this year seem to surpass those of the first half of 2023. Nevertheless, these tribulations establish a crucial foundation for sustained growth in the subsequent year.

Owing to a slower-than-anticipated recovery in market demand, inventory normalization is projected to be deferred until the close of 2023. However, recent trends insinuate that the most tumultuous times are ostensibly behind. It is anticipated that the semiconductor manufacturing sector will touch its nadir in the inaugural quarter of 2024. Although the semiconductor market has been in a pronounced descent for four consecutive quarters, the metrics from equipment sales and progress in wafer plant construction present a more optimistic outlook than foreseen. Both governmental incentive measures and proactive inventory management strategies by the industry are manifesting salient efficacy.

Forecasts for 2024 project year-over-year growth in sales across all market segments, with electronic product sales eclipsing the zenith achieved in 2022.