The semiconductor industry is poised for a strong recovery in 2024, with the World Semiconductor Trade Statistics organization projecting 19% market growth to $627 billion. The forecast reflects a dramatic turnaround, particularly in memory chips, which are expected to jump 81% year-over-year.
The optimistic outlook comes with some caveats. While memory and logic segments show robust growth potential, other categories including discrete components, sensors, and analog semiconductors face declining sales.
Regional disparities mark the recovery landscape. The Americas lead with projected 38.9% growth, followed by Asia Pacific at 17.5%. However, Europe’s semiconductor market could contract by 6.7%, while Japan may see minimal growth of 1.4%.
Looking ahead to 2025, WSTS forecasts continued expansion of 11.2% to $697 billion. Logic and memory sectors are expected to dominate, jointly surpassing $400 billion in value. However, other semiconductor categories are predicted to show only single-digit growth, suggesting potential market imbalances.
The computing sector’s improved performance in recent quarters has bolstered the outlook, though sustainability of this growth remains uncertain given historical market volatility.
