[News] SEMI Statistics Show Global Semiconductor Equipment Sales Shrink in Q1; Taiwan Experiences Sharp Decline, China Doubles – TrendForce
The latest data released by the International Semiconductor Industry Association (SEMI) has shown that due to the sharp decline in the Taiwanese and North American markets, global semiconductor equipment billings contracted 2% year-over-year to US$26.4 billion in the first quarter of 2024.
According to SEMI’s press release, President and CEO Ajit Manocha noted that despite the slight dip in global semiconductor equipment billings, the industry remains strong and resilient. “Strategic investments and demand for advanced technology will catalyze the semiconductor equipment market’s return to growth,” he stated.
It is worth noting that the Chinese market sales in Q1 reached USD 12.52 billion, a 113% jump from the same period last year, maintaining its position as the world’s largest chip equipment market for the fourth consecutive quarter.
One the other hand, the South Korean market saw a 7% decline in sales to USD 5.2 billion, ranking as the second largest chip equipment market in the world for the third consecutive quarter, surpassing Taiwan, while Taiwan’s market sales plummeted by 66% to USD 2.34 billion, experiencing the largest decline among major markets.
Additionally, sales in the European market surged by 23% to USD1.89 billion, whereas sales in the US market plummeted by 33% to USD1.89 billion. The Japanese market saw a 4% decline in sales to USD 1.82 billion, and sales in other regions dropped by 28% to USD 760 million.
On the other hand, the World Semiconductor Trade Statistics (WSTS) has shown its optimism on the semiconductor industry by adjusting its spring 2024 forecast upwards on 4th June, projecting a 16% growth in the global semiconductor market compared to the previous year, which reflects stronger performance in the last two quarters, particularly in computing end-markets. The updated market valuation for 2024 now stood at USD 611 billion.
According to WSTS, mainly two categories are anticipated to drive the growth for 2024 with double digit increase, logic (10.7% YoY) and memory (76.8% YoY). Conversely, other categories such as discrete, optoelectronics, sensors, and analog semiconductors are expected to experience single-digit declines.
Looking beyond 2024, an earlier projection from TrendForce suggests that foundry capacity, which makes significant contribution to chip equipment sales, tend to show similar change of pattern with SEMI’s data.
According to Trendfroce, as of 2024, per the overall foundry capacity, Taiwan is expected to hold approximately 44% of global market share, followed by China (28%), South Korea (12%), the US (6%), and Japan (2%). However, the overall semiconductor production capacities of Taiwan and South Korea are projected to decrease to 40% and 10%, respectively, by 2027.
China, where foundries focus more on expanding mature process capacities and are backed by government subsidies, is projected to perform relatively strong in the overall global market share, growing from 28% in 2024 to 31% in 2027.
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