Global Semiconductor Manufacturing Industry Records Strong Growth in Q3 2024, SEMI Reports (PRNewsfoto/SEMI)

MILPITAS — The global semiconductor manufacturing industry in the third quarter of 2024 reportedly showed strong momentum with all key industry indicators performing positive quarter-on-quarter (QoQ) increases for the first time in two years, SEMI announced in its Q3 2024 publication of the Semiconductor Manufacturing Monitor (SMM) Report, prepared in partnership with TechInsights. The growth is fuelled by seasonal factors and strong demand from investments in AI data centers, however, the consumer, automotive, and industrial segments are experiencing a slower pace of recovery. The growth trend is expected to continue into the fourth quarter of 2024.

After declining in the first half of 2024, electronic sales rebounded in Q3 2024, growing 8% QoQ, with a projected QoQ increase of 20% in Q4 2024. IC sales also rose by 12% QoQ in Q3 2024 and are expected to grow another 10% in Q4 2024. Overall, IC sales are forecasted to increase over 20% in 2024, primarily driven by memory products due to price improvement across the board and strong demand for data center memory chips.

Similar to the electronics sales, semiconductor capital expenditures (CapEx) decreased in the first half of 2024, but the trend is turning positive starting in Q3 2024. Memory-related CapEx is surging 34% QoQ and 67% year-on-year (YoY) in Q3 2024 reflecting improvement in the memory IC market compared to the same period of the last year. In Q4 2024, total CapEx is expected to jump 27% relative to Q3 2024 levels and 31% YoY, with memory-related CapEx leading this growth at 39% YoY.

The semiconductor capital equipment segment remains strong and is performing better than previously expected due to substantial investments from China and increased spending for high-bandwidth memory and advanced packaging. Wafer Fab Equipment (WFE) spending increased 15% YoY and 11% QoQ in Q3 2024. China’s investment continues to play a significant role in the WFE market. Additionally, both the Test and the Assembly and Packaging segments experienced impressive YoY increases of 40% and 31%, respectively, in Q3 2024, and this growth is anticipated to continue for the remainder of the year.

“The semiconductor capital equipment segment continues to exhibit growth momentum, bolstered this year by strong investments from China and increased spending on advanced technologies,” said Clark Tseng, Senior Director of Market Intelligence at SEMI. “Additionally, the continued expansion of fab capacity, especially in the foundry and logic segments, underscores the industry’s commitment to meeting the growing demand for advanced semiconductor technologies.”