MILPITAS, Calif., Aug. 19, 2024 /PRNewswire/ -- The global
semiconductor manufacturing industry in the second quarter of 2024
continued to show signs of improvement with significant growth of
IC sales, stabilizing capital expenditure, and an increase in
installed wafer fab capacity, SEMI announced today in its Q2
2024 publication of the Semiconductor Manufacturing Monitor (SMM)
Report, prepared in partnership with TechInsights. While slower
recovery in some end markets impacted the pace of growth in the
first half of the year, the surge in demand for AI chips and high
bandwidth memory (HBM) created strong tailwinds driving industry
expansion.
Seasonality and weaker than expected consumer demand impacted
electronics sales in the first half of 2024 resulting in a 0.8%
decrease year-over-year (YoY). Starting Q3 2024, electronics
sales are forecast to see a rebound, growing 4% YoY and 9% relative
to Q2 2024. IC sales showed robust 27% YoY growth in Q2 2024 and
are further expected to surge 29% in Q3 2024, surpassing record
levels seen in 2021 as the AI-fueled demand continues to boost IC
sales growth. Improved demand also led to a 2.6% decline YoY in IC
inventory levels in the first half of 2024.
Installed wafer fab capacity reached 40.5 million wafers per
quarter (in 300mm wafer equivalent) in Q2 2024 and is projected to
rise 1.6% in Q3 2024. Foundry and Logic-related capacity showed
stronger growth in Q2 2024 at 2.0% and is projected to increase
1.9% in Q3 2024 driven by capacity build-up for advanced nodes.
Memory capacity increased 0.7% in Q2 2024 and is forecast to see
1.1% growth in Q3 2024 supported by strong demand for HBM and
improving memory pricing conditions. All regions tracked saw
installed capacity increases in Q2 2024 with China remaining the fastest growing region
despite mediocre fab utilization rates.
Semiconductor capital expenditures remained conservative in the
first half of 2024 resulting in a 9.8% decrease YoY. The trend is
expected to turn positive starting in Q3 2024 in response to the
growing demand for AI chips and rapid adoption of HBM with memory
CapEx leading the growth at 16% quarter-on-quarter (QoQ) while
non-memory related capital expenditures increase by 6% QoQ.
"Despite moderate semiconductor capital expenditures in the
first half of the year, we expect a positive trend to begin in Q3
2024 led by memory CapEx," said Clark
Tseng, Senior Director of Market Intelligence at SEMI.
"Strong demand for AI chips and high bandwidth memory is boosting
results in various segments of the semiconductor manufacturing
ecosystem."
"The entire semiconductor supply chain is recovering this year
as the market prepares for a surge in 2025," said Boris Metodiev, Director of Market Analysis at
TechInsights. "AI is certainly continuing to drive high value ICs
to the market, while also supporting CapEx for capacity expansion
of AI chips and especially HBM. As consumer demand recovers, and
new technologies like AI are pushed to the edge, unit volumes and
especially revenues will recover and support the broader
semiconductor manufacturing sector."
The Semiconductor Manufacturing Monitor (SMM) report provides
end-to-end data on the worldwide semiconductor manufacturing
industry. The report highlights key trends based on industry
indicators including capital equipment, fab capacity, and
semiconductor and electronics sales, and includes a capital
equipment market forecast. The SMM report also contains two years
of quarterly data and a one-quarter outlook for the semiconductor
manufacturing supply chain including leading IDM, fabless, foundry,
and OSAT companies. An SMM subscription includes quarterly
reports.
Download a sample Semiconductor Manufacturing Monitor
report.
For more information on the report or to subscribe, please
contact the SEMI Market Intelligence Team
at mktstats@semi.org. Details on SEMI market data are
available at SEMI Market Data.
About SEMI
SEMI® is the global industry association
connecting over 3,000 member companies and 1.5 million
professionals worldwide across the semiconductor and electronics
design and manufacturing supply chain. We accelerate member
collaboration on solutions to top industry challenges through
Advocacy, Workforce Development, Sustainability, Supply Chain
Management and other programs. Our
SEMICON® expositions and events, technology
communities, standards and market intelligence help advance our
members' business growth and innovations in design, devices,
equipment, materials, services and software, enabling smarter,
faster, more secure electronics. Visit www.semi.org, contact a
regional office, and connect with SEMI
on LinkedIn and X to learn more.
Association Contact
Samer
Bahou/SEMI
Phone: 1.408.943.7870
Email: sbahou@semi.org
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