The global semiconductor sales market will recover in 2024 with an annual growth rate of 20 percent, according to a new report.

With the global demand for artificial intelligence (AI) and high-performance computing (HPC) exploding, coupled with the stabilizing demand for smartphones, personal computers, infrastructure, and resilient growth in automotive; the semiconductor industry is expected to usher in a new wave of growth, according to IDC’s latest research.

Semiconductor products cover logic integrated circuits (IC), analog IC, microprocessor and microcontroller IC, and memories.

“Memory manufacturers’ strict control of supply and output has led to increasing prices from the start of November, and the demand for AI across all major applications will drive the overall semiconductor sales market to recover in 2024,” said Galen Zeng, Senior Research Manager, Semiconductor Research, IDC Asia/Pacific.

The semiconductor supply chain, including design, manufacturing, packaging, and testing, will bid farewell to the downturn in 2023, Zeng added.

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Although the growth of the automotive market has remained resilient, the trend of automotive intelligence and electrification is clear and an important driver for the future semiconductor market.

ADAS accounts for the largest share of the automotive semiconductor market, with a compound annual growth rate (CAGR) of 19.8 percent by 2027, accounting for 30 percent of the automotive semiconductor market in that year.

Infotainment accounts for the second largest share of the automotive semiconductor market, with a CAGR of 14.6 percent by 2027, accounting for 20 percent of the market in that year, driven by automotive intelligence and connectivity.

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“Overall, more and more automotive electronics will rely on chips, which means the demand for semiconductors will be long-term and steady,” said the report.

With the advancement of semiconductor technology, it is expected that more AI functions will be integrated into personal devices starting in 2024.

AI smartphones, AI PCs, and AI wearable devices will be gradually launched into the market.

“It is expected that there will be more innovative applications for personal devices after the introduction of AI, which will positively stimulate the increase in demand for semiconductors and advanced packaging,” the IDC report predicted.