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According to the Semiconductor Industry Association (SIA), there is expected to be a rebound in global chip sales this year due to a surge in demand for artificial intelligence (AI) and a steady rise in automotive chips. The SIA predicts a 13.1% increase in global chip sales to $595.3 billion, compared to a drop of about 8% in sales in 2023.
SIA Chief Executive John Neuffer stated that AI is a robust market with many positive factors to consider. Despite a slow start for auto chips this year, the chip market for automobiles is still projected to grow by 6%, according to SIA Director Robert Casanova.
In 2023, chipmakers like Intel and Qualcomm faced weak demand for PCs and smartphones, resulting in a 1.1% increase in sales of “logic” chips to $178.5 billion. However, memory sales plummeted by 29% to $92.3 billion, making it the second largest category tracked by the SIA.
This year, tech giants are racing to deliver AI-driven products and services, leading to a surge in demand for advanced chips produced by Nvidia. Cloud computing companies are seeking to expand their capacity to run AI software, which requires large quantities of graphics processing units (GPUs) and other types of chips.
To meet the demands of AI systems, SK Hynix is manufacturing massive amounts of high-bandwidth memory, while speedy networking processors are needed to facilitate data movement.
Overall, the increasing demand for AI and automotive chips is expected to drive the rebound in global chip sales, providing a positive outlook for the industry.
Global chip sales are projected to increase by 13% following a challenging year in 2023, according to an industry group. Despite facing significant disruptions and supply chain issues, the chip market is expected to rebound, driven by growing demand in various sectors, including consumer electronics, automotive, and data centers. This positive forecast indicates a promising recovery for the semiconductor industry after a turbulent period.
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