target audience: TECH SUPPLIER Publication date: Feb 2024 - Document type: Market Presentation - Doc Document number: # US51843024
Semiconductor Market Outlook: Investment and Innovation Accelerate Next Growth Cycle
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Abstract
This IDC Market Presentation examines the semiconductor market. The sentiment for the semiconductor industry continues to build and drive momentum in expectations as the second half of last year marked the end of a long market correction. As we begin this new year, IDC expects growth will come from traditional markets such as datacenters, PCs, and smartphones as volume growth resumes and higher semiconductor content and AI inference drive a broad recovery.
We kickstart the year with a comfortable position that the semiconductor industry has moved beyond market correction, and we reiterate our outlook that the market will grow by 20% this year.
The semiconductor industry as a foundational technology is more critical than ever. IDC expects investments will continue scaling from the leading edge to advanced packaging and mature nodes to support the doubling of industry revenue over the next decade.
Automotive and industrial elevated inventory levels will return to normal in 2H24 as electrification continues to drive long-term content growth.
Capital spending will improve by 2H24 as revenue shipments match end demand and regional ChipAct incentives stimulate investment in the supply chain.
Billions of connected devices at the edge will double in volume, generating data and driving AI inference. IDC expects a shift in the competitive landscape as computing incumbents begin to see an acceleration in heterogenous architectures and dedicated neural processors to address the growing demand for AI inferencing.
The materials, design, and OSAT markets will gain more attention and investment across the supply chain as semiconductors continue to shift from monolithic integration to advanced packaging and chiplets.
Next-generation computing architectures + AI will accelerate a replacement cycle in smartphones and PCs in 2025.