SEMI: 2Q 2024 continued to show signs of improvement with significant growth of IC sales

SEMI announced its Q2 2024 publication of the Semiconductor Manufacturing Monitor (SMM) Report which it prepared in partnership with TechInsights. As part of this report, SEMI finds 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. 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 stronge...