November 16, 2023 /SemiMedia/ -- According to market research firm IDC's recent outlook for the global semiconductor market, recovery will accelerate in 2024. The global semiconductor industry revenue is expected to be US$526.5 billion in 2023, higher than the previous forecast of US$518.8 billion. In addition, IDC raised its forecast for 2024 from US$625.9 billion to US$632.8 billion, an increase of 20.2%.

IDC believes that demand in the Chinese market will recover in the second half of 2024. Growth in the semiconductor industry will be driven by the return of demand from the two largest markets, personal computers and smartphones. In addition, electrification will continue to drive semiconductor growth in the next decade, and chip inventory levels in the automotive and industrial sectors are expected to return to normal levels in the second half of 2024.

From 2024 to 2026, the launch of new technologies and large-scale flagship products will promote the value of semiconductors in various market segments, including products such as AI PCs and end-side artificial intelligence mobile phones. In addition, the capacity demand for memory chips such as DRAM will also continue to grow in the future.

In anticipation of inventory improvement and demand growth, IDC has adjusted the outlook for the global semiconductor market from "TROUGH" to "Sustainable GROWTH".

Starting in the first half of 2024, semiconductor industry revenue growth is expected to match increased end-user demand, and capital expenditures are expected to improve accordingly, creating a new investment cycle in the supply chain.

IDC researchers believe that the semiconductor market has bottomed out and is beginning to grow quarter by quarter. In addition, the proportion of artificial intelligence chips in global semiconductor sales will gradually increase in the next few years.