Market Insights Q3 2024 V2 - Flipbook - Page 3
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General Market Insight
Semiconductor Supply Chain Q3 2024
The semiconductor supply chain is experiencing a mixed recovery in Q3 2024, with growth in AI and auto sectors but
slower progress in consumer devices. Mainland Chinese chipmakers face challenges like low production yields,
despite advancements. Export controls by the US, EU, and Japan further constrain supply chains, especially impacting
chipmakers reliant on China, which accounts for 30% of their sales. Analysts reported a 44% YoY revenue growth for
top chip producers in Q1 2024, indicating overall recovery despite geopolitical pressures.
Recovery at Different Speeds Across Segments
The semiconductor industry is experiencing a multispeed recovery across different segments. AI processors have
shown the fastest growth, with a forecasted slowdown to 31% in Q1 2025 from 82% in Q1 2024, still outpacing
memory and communications chips. Consumer devices, like smartphones and PCs, reflect varied upgrade cycles,
impacting their recovery. Export data shows a 7.9% year-over-year increase in smartphone shipments by May 2024,
though overall exports of semiconductor-using consumer goods fell by 0.6%, highlighting mixed sector performance.
Source: S&P Global Market Intelligence Q3 2024
Challenges in the Industrial and Automotive Sectors
The industrial equipment and automotive sectors are lagging other semiconductor supply chains, despite some
growth in May 2024, as indicated by the S&P Global Manufacturing New Orders Index. Challenges include high
interest rates affecting capital expenditures and lingering chip inventories. Industrial equipment, typically slower to
recover, faces a delayed upgrade cycle, while the automotive sector struggles with slowing demand growth for
electric vehicles. Many industrial chipmakers remain cautious due to these economic pressures.
REBOUND ELECTRONICS
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