A leading group of semiconductor manufacturers has bumped up its valuation for the global chip market in 2024. The new forecast is largely based on soaring demand for artificial intelligence products.
World Semiconductor Trade Statistics on Tuesday said the market will be worth more than 610 billion dollars this year. That’s a 16 percent increase year-on-year and up 2.9 percentage points from the group’s estimate six months earlier.
WSTS sees most of the gains coming from integrated circuit categories, led by memory chips with a 76.8 percent surge in market value.
This is largely due to increased investment in data centers to facilitate AI services.
The group sees the pace of the expansion slowing next year, predicting 12.5 percent yearly growth to exceed 680 billion dollars. This is regarded partly as a reaction to the sharp jump in demand this year.
The Japanese branch of WSTS says demand for semiconductors for electric vehicles may dip temporarily before rebounding.
It adds that booming demand for generative AI services will continue to support the chip market.
