The global semiconductor industry is going through tough times, but do we see signs of recovery in 2024?
🟦2024 is a sign of recovery in the semiconductor industry
According to SEMI and TechInsights, the downcycle of the global semiconductor industry is coming to an end and there are signs of recovery in 2024. However, the semiconductor market is expected to continue to face headwinds in the second half of 2023. In the third quarter of 2023, memory IC sales are expected to grow.
🟦 Low occupancy rate due to inventory restructuring
In 2023, high inventories of IDMs and fabless companies are in the process of collapsing, which is causing a decline in fab utilization. This impact of high inventories could reduce capital expenditures and silicon shipments. It said that inventory normalization will be delayed until the end of 2023, which could further reduce fab utilization. On the other hand, the semiconductor market has fallen sharply in the past four quarters, but equipment sales and factory construction have exceeded expectations.
🟦Summary
Although the global semiconductor industry is facing a difficult period in 2023 with some challenges remaining, such as high inventories and slow recovery in demand, there are signs of recovery in 2024.
The second half of 2023 will still face headwinds, but we are predicted to see signs of recovery in 2024.
