Source: Content compiled from SIA

The Semiconductor Industry Association (SIA) announced today that global semiconductor sales reached $56.9 billion in October 2024, up 22.1% from $46.6 billion in October 2023 and up 2.8% from $55.3 billion in September 2024.

In addition, the latest WSTS industry forecast (endorsed by SIA) has raised its forecast for 2024. The forecast now projects global annual sales to increase 19.0% year-over-year, totaling $626.9 billion this year. Global sales are expected to reach $697.2 billion in 2025, up 11.2% year-over-year.

"The global semiconductor market closed out 2024 with a record-breaking October total for the industry and the seventh consecutive month of month-over-month sales growth," said John Neuffer, SIA president and CEO. "Full-year 2024 total sales are now expected to increase by nearly 20% – higher than previously forecast – before continuing to grow in the double digits in 2025."

Regionally, sales in October were up year-over-year in the Americas (54.0%), China (17.0%), Asia/Pacific/All Others (12.1%), and Japan (7.4%), but down in Europe (-7.0%). Month-over-month sales in October were up in the Americas (8.3%), Europe (1.3%), China (1.0%), and Japan (0.2%), but down slightly in Asia/Pacific/All Others (-0.7%).

Chip, for the first time in four years

On December 3, 2024, the World Semiconductor Market Statistics (WSTS) released its forecast for the global semiconductor market in the fall of 2024. The report said that the global semiconductor market is expected to grow to $626.869 billion in 2024, up 19.0% from the previous year. The driving force is said to be memory and GPU, whose demand is expanding due to active AI (artificial intelligence) related investments. WSTS predicts that the global semiconductor market will continue to grow by 11.2% in 2025 to $697.184 billion.

In 2023, the global semiconductor market will see a decline in semiconductor demand outside of AI-related/automotive applications as global inflation, related interest rate hikes, and rising geopolitical risks will affect personal consumption and corporate capital investment. It fell 8.2% from the previous year, the first negative growth in four years. According to WSTS forecasts, in 2024, many products are expected to see negative growth from the previous year, including a strong decline in automotive applications in 2023 and a decline in industrial applications due to a decline in capital investment. AI-related memory and logic products such as the aforementioned GPUs will be the driving force, and we expect sales to grow again by 19.0% year-on-year.

Non-AI related fields will see positive growth in 2025 and expand in all regions

WSTS predicts that by 2025, in addition to continued investment in AI-related data centers, the expansion of the base, including an increase in the number of terminals equipped with AI functions, will also help expand semiconductor demand. We also expect the gradual expansion of the global economy to boost semiconductor demand, so we expect products other than logic products such as memory and GPUs to return to positive year-on-year growth. The market is expected to grow further by 11.2% from the previous year.

From a regional perspective (in US dollars), the Americas are expected to grow 38.9% year-on-year in 2024, the Asia-Pacific region will grow 17.5%, Japan will grow slightly by 1.4%, and Europe will grow by 6.7%. In 2025, the Americas will continue to maintain double-digit growth, with a year-on-year increase of 15.4%, the Asia-Pacific region will grow by 10.4%, and all regions will see growth, including a 9.4% increase in Japan and a 3.3% increase in Europe.

In addition, in terms of yen, the Japanese semiconductor market will increase by 3.8% year-on-year to approximately 656.37 billion yen in 2023, 8.7% year-on-year to approximately 713.45 billion yen in 2024, and 8.3% year-on-year to approximately 772.40 billion yen in 2025.

Only memory, logic, and micro IC products will see growth in 2024

In 2024, the global market by product (in US dollars) is $31.5 billion for discrete devices, down 11.2% from the previous year, $42.1 billion for optoelectronics, down 2.5% from the previous year, and $18.7 billion for optoelectronics. The dollar for sensors and actuators fell 5.1% year-on-year. On the other hand, the overall IC is expected to grow 24.8% year-on-year to $534.5 billion. By product, memory is expected to grow 81.0% year-on-year, logic to grow 16.9%, micro to grow 3.9%, and analog to grow -2.2%.

 In 2025, discrete device sales will increase by 5.8% over the previous year to $33.4 billion, optoelectronic devices will increase by 3.8% to $43.7 billion, sensors and actuators will increase by 7.0% to $20 billion, and overall IC sales will increase by 12.3% over the previous year to $600.1 billion. Looking at IC products by product, memory is expected to grow by 13.4%, logic by 16.8%, micro by 5.6%, and analog by 4.7%.

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