Boom in semiconductor and memory demands for integrated device manufacturing | Google Generative ai Certification | Generative ai Google Tutorial | Visual Generative ai Tools | Turtles AI
Boom in semiconductor and memory demands for integrated device manufacturing
Isabella V
Semiconductor Sector Grows Thanks to Demand for Memories and IDM in First Quarter 2024
Key Points:
- Demand for high-bandwidth memory (HBM) has driven up prices and revenues in the memory market.
- Computing dominated the IDM market in the first quarter of 2024, with a 35% share, up from 29% a year earlier.
- Demand for AI devices, such as PCs and smartphones, accelerated the increase in memory demand.
- The automotive and industrial markets have slowed down due to excess inventory, with recovery expected in the second half of the year.
In the first quarter of 2024, the semiconductor industry saw significant growth, particularly due to increased demand for memory and consolidation in the Integrated Device Manufacturing (IDM) market. A recent IDC report, "Worldwide Semiconductor Integrated Device Manufacturing Market: Top 10 Vendor Ranking and Insight, 1Q24," highlighted how the balance achieved in the memory market, after the turbulence caused by the COVID-19 pandemic, has played a crucial role in the industry’s development.
High-bandwidth memory (HBM) has been at the center of this growth, directly influencing the dynamic random access memory (DRAM) market. With a significantly higher market price than conventional memory, HBM has reduced the available capacity for DRAM, contributing to the increase in prices and, consequently, overall revenues in the memory industry. In addition, the emerging demand for AI-capable devices, such as new AI PCs and smartphones, has further fueled the growth in memory demand.
In the context of the IDM, the top ten manufacturers in the first quarter of 2024 included prominent names such as Samsung, Intel, SK Hynix, Micron, and Infineon. Notably, three of the top five manufacturers specialized in memory, underscoring the growing importance of this segment in the global market. Overall, the top ten manufacturers accounted for a significant portion of the industry’s revenues, demonstrating strong market concentration.
IDC’s report also showed that while the computing sector dominated the IDM market with a 35 percent share, the wireless communications segment followed closely behind. On the other hand, the automotive and industrial markets have suffered from excess inventory, a consequence of the rush to stockpile during supply chain disruptions in previous years. However, IDC expects these sectors to recover in the second half of 2024 as inventories normalize.
Helen Chiang, semiconductor research manager for IDC Asia/Pacific, stressed the strategic importance of memory manufacturers in the global IDM environment. According to Chiang, normalization of inventories in the automotive and industrial markets could foster a significant recovery, further contributing to industry growth in the second half of the year.
This scenario envisions a 2024 of continued growth for the semiconductor industry, with memory remaining at the center of market dynamics, supported by AI expansion and post-pandemic stabilization.
