Market Insights Q3 2024 V2 - Flipbook - Page 11
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General Market Insight
Semiconductor Industry Fueled by AI and Automotive Innovations for Continued Growth
In Q2 2024, the semiconductor industry experienced strong growth, with sales up by 27%, driven largely by the rising
demand for artificial intelligence (AI) and high-bandwidth memory (HBM). Despite challenges like Intel's stock drop, the
broader market showed resilience, with forecasts predicting further growth in Q3. AI's influence is also boosting memory
demand, pushing capital expenditures in the semiconductor sector.
Beyond memory, the automotive industry is fueling significant growth in passive components and LEDs. As electric vehicle
(EV) production and advanced driver-assistance systems (ADAS) expand, the demand for components like multi-layer
ceramic capacitors (MLCCs) is increasing. LED usage, particularly in automotive applications, has recovered, further
contributing to market growth. This trend is expected to continue as EV infrastructure improves and advanced safety
systems become more widespread. Overall, the semiconductor industry is poised for ongoing expansion through AI,
automotive innovations, and strong global demand.
China's Semiconductor Industry Rebounds in 2024 with Over 30 Projects Driving Innovation and
Market Growth
China's semiconductor industry is witnessing a gradual recovery, driven by increasing downstream demand and progress in
numerous projects across the sector. Over 30 semiconductor-related projects have advanced to stages such as contract
signing, construction, and production. These projects span diverse areas, including electronic design automation (EDA),
artificial intelligence (AI), advanced packaging, materials, equipment, third-generation semiconductors, chip design, CMOS
sensors, and memory.
Key companies involved include Huahong, Semitronix, YASC, Skyverse, Hoshine, Smartsens, Sanan Semiconductor, and
CFMEE. Industry reports indicate that revenue for companies in the mid-to-upper levels of the integrated circuit supply
chain is improving, with AI driving revenue growth, particularly in the demand for acceleration chips like GPU and HBM.
Subsectors such as advanced packaging and materials are also benefiting from the recovery. New energy vehicles have
increased demand for third-generation semiconductor materials, especially power devices like silicon carbide (SiC).
TrendForce forecasts continued growth for SiC in high-power markets such as automotive and renewable energy,
projecting the global SiC power device market to reach $9.17 billion by 2028.
Project Areas
Companies Involved
Key Market Trends
EDA
Huahong, Semitronix, YASC
Growth in design automation tools
AI
Skyverse
AI driving demand for GPU/HBM
Advanced Packaging
Huahong
Increased demand in packaging technology
Materials
Hoshine
High demand for new materials
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