With the increase in demand for electronic components from global enterprises, the Semiconductor Industry Association (SIA) recently released a report that the global chip industry is expected to be significantly more significant in 2024, with sales expected to jump to nearly $600 billion, a record high. John Neuffer, president and CEO of SIA, said that global semiconductor sales were strong in the second half of the year after a sluggish start to 2023**, and this trend is expected to continue this year.
The report pointed out that the total sales of the global semiconductor industry in 2023 will be 526.8 billion US dollars, a year-on-year decrease of 82%。However, thanks to the recovery of the market and the increase in demand, SIA** global chip sales will increase by 13% in 2024 to nearly $600 billion. Among them, Nvidia, the largest chipmaker by market capitalization, has managed to avoid an industry downturn with its leading artificial intelligence products, and its sales are expected to double.
Europe was the only region to see growth last year, with sales up 4 percent. In contrast, the Asia-Pacific region saw the largest decline, with the Americas contracting by 52%。While some industry giants have had a tough year in 2023, as the market recovers and normalizes, many companies say the worst contraction is over and is gradually getting back on track.
According to SIA, this growth momentum is due to increased demand for electronic components from a wide range of businesses. With the rapid development of science and technology, chips are more and more widely used in all walks of life, from smart phones, personal computers to self-driving cars, artificial intelligence and other fields, all of which are inseparable from the support of chips. Therefore, with the recovery of the global economy and the advancement of science and technology, the demand of the chip industry will continue to grow.
In addition, investors are also optimistic about the future development of the chip industry. The Philadelphia Semiconductor Index is 65% higher in 2023 and 3% this year as of last Friday9%。Investors believe that chipmakers like Nvidia will benefit from a boom in AI-related hardware spending, with higher earnings and growth expected in the future.