Storage chips will drive global IC sales growth in 2024

After the downturn in 2023, global semiconductor industry revenue is expected to grow by 16.8% year-on-year in 2024, mainly due to the surge in demand for storage chips.
 

It is expected that global semiconductor industry sales will reach $624 billion in 2024, higher than this year's $534 billion. Due to weak demand leading to inventory adjustments, revenue is expected to decrease by 10.9%.

The global memory chip market is expected to rebound by 66.3% next year, while it is expected to decline by 38.8% this year due to oversupply issues.
 

NAND flash memory chips are a storage technology that does not require electricity to store data, and their prices are expected to bottom out in the next three to six months and recover strongly next year, with sales possibly increasing by 49.6%. Gartner stated that this number will reach $53 billion.
 

The oversupply of DRAM chips will continue throughout the quarter and trigger a price rebound, with the full impact likely to manifest next year, when sales are expected to soar 88% to $87.4 billion.
 

At the end of 2023, the strong demand for chips that support artificial intelligence (AI) workloads such as graphics processing units (GPUs) was not enough to save the semiconductor industry from a double-digit decline in 2023,

The decreasing demand from smartphone and personal computer customers, coupled with weak spending on data centers/super extenders, is affecting this year's revenue decline.
 

The development of generative AI and big language models is driving the demand for high-performance GPU based servers and accelerators in data centers, resulting in a demand for workload accelerators.