ELECTRONIC NEWS HIGHLIGHT W40.2024

1. Global semiconductor sales increased 23.2% in the third quarter of 2024

Semiconductor Industry Association SIA announced global semiconductor sales reached $166 billion in the third quarter of 2024, marking a 23.2% increase over the same period in 2023 and a 10.7% increase over the second quarter of 2024. Sales in September alone reached 55.3 billion USD, up 4.1% compared to 53.1 billion USD in August 2024, setting a record.

The global semiconductor market continued to grow strongly in the third quarter of 2024, achieving the highest quarterly increase since 2016. SIA President and CEO John Neuffer said: “September sales were strong. highest-ever monthly sales total, driven primarily by a 46.3% year-on-year increase in the Americas, which played a key role in overall market expansion.”

By region, year-on-year growth in September 2024 was led by the Americas 46.3%, followed by China 22.9%, Asia Pacific, all other regions 18.4% and Japan 7.7%. while Europe saw an 8.2% decrease. On a monthly basis, sales in September increased in Japan 5.3%, Asia Pacific and all other regions 4.5%, Americas 4.1%, Europe 4.0% and China 3.6%.

Learn more: Global semiconductor sales increased 23.2% in the third quarter of 2024

2. Kioxia forecasts flash memory demand will increase 2.7 times by 2028

On November 5, 2024, Kioxia expected global flash memory demand to increase approximately 2.7 times by 2028, thanks to rapid advances in artificial intelligence.

To meet expected demand, the chipmaker is expanding capacity at its new factory in Kitakami, Iwate Prefecture, north of Tokyo. Although the plant was originally scheduled to begin production last year, Kioxia postponed the start to fall 2025 to ensure enough capacity for future market demand. Widespread adoption of AI is driving global investment in servers, and the addition of AI features to consumer devices such as smartphones and PCs is expected to drive demand further.

“With the Kitakami plant expected to come online in the fall of 2025, we will have enough production space to meet demand,” Kioxia Vice President Tomoharu Watanabe said.

Learn more: Kioxia forecasts flash memory demand will increase 2.7 times by 2028

3. STMicroelectronics is turning to the Chinese market for growth following a downward revision of its revenue forecasts

STMicroelectronics has lowered its revenue forecast for 2024 for the third time, citing weak demand from industrial customers. The company noted that growth for its largest division now depends on expanding its presence in China. Along with other auto chipmakers such as Texas Instruments and Melexis, ST is focusing on the Chinese electric vehicle market to drive growth, as existing customers cut orders due to high inventory levels and demand for cars decreased.

CEO Jean-Marc Chery emphasized on a conference call that ST needs to increase market share in China, despite losing market share there in 2024. Chery added that over the next three years, the company’s growth company, especially in the Power & Discrete and Analog segments, will depend on its ability to capture a larger market share in China.

ST is looking to enter the field of artificial intelligence, where chip manufacturers are focusing their attention. Chery mentioned a recent design win involving silicon and silicon carbide products for a Taiwanese supplier of power units for AI server infrastructure.