KUALA LUMPUR (Feb 15): The global semiconductor manufacturing industry recovery is taking hold with electronics and integrated circuit (IC) sales increasing in the final quarter of 2023 and more growth projected for 2024, according to Semi.
In its Semiconductor Manufacturing Monitor (SMM) report for the fourth quarter of 2023 (4Q2023), Semi said that in the quarter, electronics sales edged up 1% year-on-year (y-o-y), marking the first annual rise since the second half of 2022, and growth is projected to continue in 1Q2024 with a 3% y-o-y increase.
It said that at the same time, IC sales returned to growth with a 10% y-o-y jump in 4Q2023, as demand improved and inventories started to normalise.
It said IC sales are forecast to strengthen in 1Q2024 with an 18% y-o-y growth.
Semi said capital expenditure (capex) and fab utilisation rates are expected to see a mild recovery starting in 1Q2024 after significant declines in the second half of 2023.
It said that in 1Q2024, memory capex is projected to increase 9% quarter-on-quarter and 10% y-o-y, while non-memory capex is on track to climb 16% during the quarter but remain at lower levels than recorded in 1Q2023.
Semi said fab utilisation rates saw a modest improvement from 66% in 4Q2023 to 70% in 1Q2024.
Meanwhile, fab capacity grew 1.3% in 4Q2023 and is projected to match those gains in 1Q2024.
Equipment billings in 2023 surpassed projections though growth is expected to be muted in the first half of 2024 mostly due to seasonality.
Semi senior director of market intelligence Clark Tseng the electronics and IC markets are recovering from a slump in 2023 with growth expected this year.
“Although fab utilisation remains low at the moment, improvement as 2024 unfolds is anticipated,” he said.
Meanwhile, TechInsights director of market analysis Boris Metodiev said semiconductor demand is well on its way in the recovery.
“While the overall IC market is growing this year, slowing automotive and industrial markets are hampering the analog expansion.
“AI will be a huge catalyst for leading-edge semiconductors as the technology proliferates from the cloud to the edge. At the same time, geopolitics is driving excess capacity at the trailing edge,” he said.