On Dec. 17, Samjong KPMG released a report titled “Six Key Issues and Response Strategies in the Semiconductor Industry,” forecasting that the global semiconductor market will grow by 19% year-on-year to reach approximately $626.9 billion in 2024. The report highlights the rapid shift to growth in the semiconductor markets of the Americas and the Asia-Pacific region, driven by memory semiconductors. This growth marks a significant turnaround from the decline observed last year.

According to the report, the memory semiconductor market has seen an impressive 81% growth this year compared to last year. This sector is expected to expand further, with a particular focus on integrated circuits (ICs) next year. The resurgence in the semiconductor market is particularly notable in South Korea, where semiconductor exports rebounded in the first half of this year, increasing by 52.2% year-on-year. The export of memory semiconductors, including those used in artificial intelligence (AI), grew by 78.9% during this period, driving the overall performance.

The report underscores that innovations in AI, power semiconductors, and advanced packaging technologies will lead the future growth of the semiconductor industry. With the advent of the AI era, the demand for high-performance semiconductors is becoming more pronounced. Domestic memory semiconductor companies are focusing on developing high-bandwidth memory (HBM) products combined with accelerators to meet this demand.

Interest in power semiconductors is also growing due to the increasing number of high-power consumption facilities such as data centers and electric vehicles. Advanced packaging technology has become essential due to the rising demand for high-performance and miniaturized semiconductors. The report suggests that attention should be paid to the continuous expansion of investments in fabless (design) startups specializing in AI semiconductors both domestically and internationally. It also identifies active mergers and acquisitions (M&A) in the global semiconductor market, particularly in the AI, power semiconductor, and advanced packaging sectors, as a recent major trend.

The report further advises that the potential re-election of U.S. President Donald Trump could exacerbate U.S.-China tensions and protectionism, increasing uncertainty in the global semiconductor supply chain. While there is a risk that South Korea’s semiconductor-related industries might lose some market opportunities or face uncertain situations due to U.S. pressures to join its regulations on China, there is also a possibility of gaining indirect benefits from the formation of new supply chains and market restructuring.

Yeom Seung-hoon, deputy vice president and technology industry leader at Samjong KPMG, emphasized, “To quickly respond to the full-scale application of AI technology across various industries and the consequent increase in demand for advanced semiconductors, companies should actively review collaboration and investment strategies.” He added, “To enhance advanced semiconductor technology capabilities and global competitiveness across the entire value chain, mid- to long-term investment support measures should be prepared.”