Global semiconductor revenue is expected to make tremendous strides in 2024, reaching $624 billion, or growth of about 16.8%, according to new research from Gartner Inc.
This is a far cry from the decline in the market in 2023 to $534 billion, or 10.9% fall year-over-year.
The significant growth in 2024 will be driven by double-digit growth in the memory market, however revenue for all semiconductor types will grow during the year, Gartner said.
Memory rebound
For the past few years, the memory chip market has been in massive oversupply leading to a purge in prices and weak demand. The slide got so bad that Gartner forecasts a record 38.8% decline this year, falling to $35.4 billion in revenue.
The good news is that prices in the NAND sector are due to hit bottom and conditions will improve for vendors with Gartner forecasting a whopping 66.3% growth in 2024 for all memory types. NAND specifically will reach $53 billion, up 49.6% year-over-year.
Oversupply and lack of demand also crippled DRAM vendors as prices crashed in 2023. However, prices are expected to rebound in 2024 with revenue increasing 88% to $87.4 billion.
While memory was certainly a big part of semiconductors’ woes in 2023, other factors contributed like:
- Reduced smartphone demand
- Reduced PC demand
- Data center spending weakness
The full research can be found in Gartner’s “Forecast Analysis: Semiconductors and Electronics, Worldwide” report.
