Published: 29 July 2024
Capex will increase at a moderate rate of 2.4% in 2024 to reach $176.4 billion after posting a 5.6% decline in 2023. Spending will grow until 2026, when the market will witness another memory-driven correction. China will continue to dominate spending in the forecast period.
As the semiconductor industry enters a recovery phase, driven by memory shortages and demand rising across applications, semiconductor revenue will increase by 19.2% to reach $631.9 billion in 2024, followed by 16.7% growth in 2025.
With increasing demand for leading-edge wafers and advanced packaging for AI applications, foundry revenue will grow by 16.3% in 2024 to reach $134.1 billion, with an increase in average selling prices (ASPs) for wafers by 2.8%.
DRAM production cuts, along with DRAM demand for hyperscalers’ AI servers, are fueling price increases, which will lead revenue to grow 73.1% to reach $86.3 billion in 2024.
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