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The Semi-Conductor Industry in 2024

In this article, we take a look at the upcoming forecasts for the semiconductor industry in 2024 and find out what might drive growth in the market. The pandemic is a thing of the past (we hope) and it is interesting to see how things have changed and what the market might look like going forward.

Technology is advancing at a faster rate than ever before with the advent of AI, Electronic Vehicles and the need to develop more sustainable solutions for the planet. All of which have an impact on the semi-conductor market which is expected to experience significant growth and transformation in 2024.

The Key Drivers for Growth in 2024

  1. Continued Demand for Advanced Technologies: The demand for semiconductors is expected to remain strong, driven by the growth of artificial intelligence, cloud computing, and 5G networks. These technologies require increasingly powerful and sophisticated semiconductors, which will continue to push the boundaries of innovation. AI/ML is a rapidly growing field that is transforming many industries. AI/ML applications require powerful semiconductor chips that can handle large amounts of data and complex algorithms.
  2. Supply Chain Diversification: The semiconductor industry is undergoing a major shift in its supply chain, with a growing focus on diversification and onshoring. This is due in part to geopolitical tensions and the desire to reduce reliance on any single region or supplier. 
  3. Rise of Specialized Foundries: The traditional model of semiconductor manufacturing, in which companies design and manufacture their own chips, is giving way to a new model where companies specialize in either design or manufacturing. This trend is being driven by the increasing complexity and cost of chip manufacturing.
  4. Emergence of New Technologies: Several new technologies are on the horizon that could have a significant impact on the semiconductor industry in 2024. These include neuromorphic computing, quantum computing, and new materials such as gallium nitride (GaN).

Growing Importance of Sustainability: The semiconductor industry is becoming increasingly aware of its environmental impact and is taking steps to reduce its carbon footprint. This is leading to the development of new manufacturing processes and the use of more sustainable materials. The sustainability industry is silk struggling with how to produce new chips in an environmentally responsible way and we think 2024 could be a game changer for these advances.

We think the growth of Generative AI is a major factor in the growth of the semiconductor industry in 2024. This area is advancing at such a rapid pace that the market will have to follow suit.

Karen Salmon, MD, Force Technologies Ltd

Here are some specific insights on the semiconductor industry in 2024:

  • The foundry segment is expected to lead the semiconductor expansion in 2023 with US$49 billion in investments, a one percent uptick in growth, and US$51.5 billion in spending in 2024, a five percent increase as investment continues in leading-edge and mature process nodes.
  • Research projects that smartphones, PCs, and servers demand for semiconductors are likely to account for 40% of total global demand in 2024.
  • The global semiconductor industry appears to be nearing the end of a downcycle and is expected to begin to recover in 2024
Sustainability in Semiconductor market
“The development of generative AI will boost the growth of capital expenditure related to data centers. We anticipate semiconductors used for cloud AI to be the main driver for investment in 2024.”

Tony Huang from DigiTimes

Big Tech Building Their Own

According to Cody Willard from Market Watch, Big tech companies like Apple, Alphabet and Microsoft and the other major semiconductor buyers are designing more and more of their own semiconductors in-house, rather than pad high margins at the fabless semis. Because they are now big enough to create application-specific chips at a much lower cost and keep a much closer eye on quality control.

These insights suggest that the semiconductor industry is well-positioned for continued growth in 2024. However, with all the semiconductor capacity being taken by AI and next-generation products, markets such as defence and aerospace will see the semiconductors they use being made obsolete as their demand is less than AI. This is where we at Force Technologies come in. Why not start the conversation early and find out how we can help you plan to avoid any pitfalls in your obsolescence programs? Email one of the team at for more information.