After a decline this year, silicon wafer shipments are expected to bounce back in 2024 as semiconductor demand recovers and inventory levels normalize, according to a new report from SEMI.
According to the trade organization, global silicon wafer shipments are forecast to decline by as much as 14% to 12,512 million square inches (MSI) from the record from 2022 of 14,565 MSI. The decline is due to softness in demand for semiconductors as well as continued macroeconomic and geopolitical conditions, SEMI said.
The better news is the rebound will continue through 2026 as wafer shipments set new highs with silicon demand increasing due to:
- Artificial intelligence
- High-performance computing
- 5G
- Electric and connected vehicles
- Industrial demand
Silicon wafers are used to create most semiconductors which are increasingly being used across all sectors of the global supply chain. And as more electronics are included in applications like automotive and consumer electronics, the demand for both wafers and semiconductors will likely increase resulting in the need for greater manufacturing.
