Global semiconductor revenue to top US$600 billion in 2024, says DIGITIMES Research

Emily Liao, DIGITIMES Research, Taipei 0


In 2023, the worldwide semiconductor market faced challenging conditions. Amidst various uncertainties including geopolitics and the broader economy, DIGITIMES Research projects that the worldwide IC design and IDM sector generated US$523 billion in revenue in 2023, reflecting an 8.9% decline compared to the previous year.

Looking ahead to 2024, driven by demand for AI application chips and memory, global semiconductor revenue is expected to reach US$600 billion, a 17% increase that will resume growth, according to DIGITIMES Research.

According to a DIGITIMES Research analysis of the global semiconductor industry share, the US dominated with an approximate 60% share in 2023, followed by South Korea with a 12% share.

As a result of the memory market's recovery in 2024, South Korea's industry share will increase to 16%, according to DIGITIMES Research. Meanwhile, the proportional percentages of Europe and other regions (11%), Taiwan (7%), Japan (6%), and China (4%), are expected to remain stable or slightly lower this year.

In 2023, the semiconductor market's focus shifted to AI device applications. A significant increase in AI server shipments drove Nvidia's revenue growth, driving demand for high-end GPUs and allowing the company to overtake Intel, the long-time industry leader, according to DIGITIMES Research. Nvidia's revenue leadership in the worldwide semiconductor sector is predicted to persist until 2024, driven by increased demand for AI-related applications.

Furthermore, overall server, notebook, and PC shipments will increase in 2024, as will shipments of AI devices, boosting additional demand for related chips. This will boost the recovery of associated chip and memory industries while also contributing to the expansion of the global semiconductor sector, according to DIGITIMES Research.

While several favorable factors will influence the 2024 semiconductor market, DIGITIMES Research says that several potentially disruptive variables, such as inflation, geopolitics, general elections in multiple countries, and the overall economy should be closely monitored.