December 19, 2023 /SemiMedia/ -- According to the latest report from TechInsights, 2024 is expected to be a record year for global semiconductor industry revenue, with the total market size exceeding the peak in 2022. In addition, TechInsights predicts that the market size is expected to double in the next 10 years, creating more than $1 trillion in revenue.

TechInsights believes that this year has been a challenging year for the semiconductor industry, with weakening demand, oversupply, and a troubled global economy leading to a downturn in the industry. Weakened consumer demand for electronics has fundamentally affected the semiconductor industry.

The memory chip industry has been most affected by the downturn in the electronics industry. Overproduction has led to large inventories of memory chips and a sharp decline in average selling prices (ASPs). But the situation started to improve in late 2023, indicating that demand is recovering. In addition, the market for more advanced 3D memory chips has also been strengthened, driven by demand for artificial intelligence (AI).

The report pointed out that driven by the rise of AI chips, the average selling price of logic chips has increased significantly. Automotive semiconductors are also an area boosting the market. Among them, in-car entertainment, safety functions, driver monitoring, autonomous driving, etc. have all driven the demand for advanced chips.

TechInsights said the key to economic recovery lies in earnings, not shipments. Data show that although IC shipments continued to decline by 2% compared with Q3 2023, the IC market shipments increased by 10% in the third quarter of 2023. The rising average selling prices of advanced artificial intelligence and automotive chips offset the decline in consumer electronics.