Global semiconductor manufacturing industry poised for 2024 recovery, SEMI reports
Date: 16/02/2024
The global semiconductor manufacturing industry is witnessing a steady recovery, as indicated by the latest findings from SEMI's Semiconductor Manufacturing Monitor (SMM) report for the fourth quarter of 2023, produced in collaboration with TechInsights. With electronics and integrated circuit (IC) sales on the rise, the industry is poised for continued growth in 2024.
Sales Growth in Q4 2023: Electronics sales experienced a modest 1% Year-over-Year (YoY) increase in the final quarter of 2023, marking the first annual rise since the second half of 2022. Similarly, IC sales surged by 10% YoY in Q4 2023, driven by improved demand and normalized inventories.
Projected Growth in Q1 2024: The positive momentum is expected to continue into Q1 2024, with electronics sales projected to increase by 3% YoY. IC sales are forecasted to strengthen further, with an anticipated 18% YoY growth in Q1 2024.
Recovery in Capital Expenditures and Fab Utilization: Capital expenditures and fab utilization rates are anticipated to see a mild recovery starting in Q1 2024, following significant declines in the latter half of 2023. Memory CapEx is projected to rise by 9% Quarter-on-Quarter (QoQ) and 10% YoY in Q1 2024, while Non-Memory CapEx is expected to increase by 16% during the quarter.
Moderate Equipment Billings Growth: Although equipment billings surpassed projections in 2023, growth is expected to be subdued in the first half of 2024, primarily due to seasonal factors. Despite this, the industry remains on a positive trajectory, with ongoing recovery efforts bolstering confidence.
The findings from SEMI's Q4 2023 Semiconductor Manufacturing Monitor report paint a promising picture of the semiconductor industry's recovery. With sales growth in electronics and Ics, coupled with anticipated increases in capital expenditures and fab utilization rates, the industry is poised for continued expansion in 2024. While challenges persist, particularly in the context of seasonal fluctuations, the overall outlook remains optimistic, reflecting the resilience and adaptability of the semiconductor manufacturing sector.
Sources: SEMI (www.semi.org) and TechInsights (www.techinsights.com), February 2024
