February 17, 2025 /SemiMedia/ — SEMI's latest annual report indicates that global silicon wafer shipments will decline 2.7% year-on-year to 12.266 billion square inches (MSI) in 2024, with sales falling 6.5% to $11.5 billion. Although the market has been recovering since the second half of 2023, weak demand in some segments and slow inventory adjustments have tempered the rebound.

SEMI noted that sluggish demand in high-capacity markets has led to lower fab utilization rates and put pressure on wafer shipments for specific applications, delaying inventory clearance. The recovery is expected to continue through 2025, with stronger growth anticipated in the second half of the year.

“Generative AI and next-generation data center construction are driving demand for advanced wafer fabs and memory products such as high-bandwidth memory (HBM), but most end markets are still working through excess inventory,” said SEMI SMG Chair and GlobalWafers Vice President and Chief Auditor Li Chongwei. “As highlighted in multiple corporate earnings reports, the industrial semiconductor sector remains in an inventory correction phase, weighing on global wafer shipments.”