The global semiconductor manufacturing industry has shown further signs of improvement in the second quarter of 2024, according to a new report by SEMI. Integrated circuit (IC) sales have seen a substantial increase, capital expenditures have leveled off, and wafer fabrication plant installation capacity has expanded. Although a slowdown in the recovery of some end markets has impacted the growth rate in the first half of the year, the industry is benefiting from a robust upswing due to the skyrocketing demand for AI chips and High Bandwidth Memory (HBM).

Specifically, seasonal factors and weaker-than-expected consumer demand influenced the sales of electronic products in the first half of 2024, leading to a 0.8% year-on-year decrease. However, a rebound is expected to start from the third quarter, with sales forecasted to grow by 4% year-on-year and 9% sequentially. In Q2 2024, global IC sales grew by 27% year-on-year, and this growth is expected to accelerate to 29% in Q3, surpassing the historical record set in 2021. The improved demand has also led to a 2.6% year-on-year decrease in IC inventory levels in the first half of 2024.

In terms of wafer capacity, the installed capacity in wafer fabs reached 40.5 million wafers per quarter (equivalent to 300mm wafers) in Q2 2024 and is expected to increase by 1.6% in Q3. Wafer foundries and logic-related capacities grew by 2.0% in Q2 and are anticipated to grow by 1.9% in Q3, driven by increases in advanced node capacities. All tracked regions saw an increase in installed capacity in Q2 2024, with China remaining the fastest-growing region despite average wafer fab utilization rates.

Regarding capital expenditures, the semiconductor industry saw a 9.8% year-on-year decrease in the first half of this year. However, with the continuous growth in demand for AI chips and the rapid adoption of HBM, the trend is expected to turn positive starting in Q3. Memory-related capital spending is forecasted to increase by 16% sequentially, while non-memory-related capital spending is expected to grow by 6% sequentially.

The report underscores the industry's resilience and potential for growth, highlighting the significant role of emerging technologies in driving the market forward.