Global semiconductor sales are expected to rebound to double-digit growth in 2024 following a decrease of 8.2% in 2023, according to new research from the Semiconductor Industry Association (SIA).
While the market improved in the second half of the year, chip sales fell in 2023 to $526.8 billion due to sluggish economic conditions, high inflation and geopolitical issues. In the fourth quarter of 2023, chips sales were 11.6% more than the total from the fourth quarter of 2022.
The good news is that the SIA forecasts the market to return to growth with a 13.1% jump from 2023 global sales totals.
“Global semiconductor sales were sluggish early in 2023 but rebounded strongly during the second half of the year, and double-digit market growth is projected for 2024,” said John Neuffer, president and CEO of the SIA. “With chips playing a larger and more important role in countless products the world depends on, the long-term outlook for the semiconductor market is extremely strong. Advancing government policies that invest in R&D, strengthen the semiconductor workforce, and reduce barriers to trade will help the industry continue to grow and innovate for many years to come.”
Chip segments
While overall global sales were down, several chip segments stood out in 2023. Logic products total $178.5 billion in 2023, the largest product category by sales. Memory was second in terms of sales totaling $92.3 billion.
Microcontrollers grew by 11.4% in 2023 to reach $27.9 billion and sales of automotive semiconductors grew by 23.7%.
