The worldwide semiconductor manufacturing trade within the third quarter of 2024 confirmed “robust” momentum with all key trade indicators performing optimistic quarter-on-quarter (QoQ) will increase for the primary time in two years.

The findings are reported in SEMI’s Q3 2024 publication of the Semiconductor Manufacturing Monitor (SMM) Report, ready in partnership with TechInsights.

The expansion is fueled by seasonal elements and robust demand from investments in AI knowledge facilities, nevertheless, the patron, automotive, and industrial segments are experiencing a slower tempo of restoration. The expansion development is predicted to proceed into the fourth quarter of 2024.

After declining within the first half of 2024, digital gross sales rebounded in Q3 2024, rising 8 p.c QoQ, with a projected QoQ improve of 20 p.c in This fall 2024. IC gross sales additionally rose by 12 p.c QoQ in Q3 2024 and are anticipated to develop one other 10 p.c in This fall 2024.

Total, IC gross sales are forecasted to extend over 20 p.c in 2024, primarily pushed by reminiscence merchandise attributable to value enchancment throughout the board and robust demand for knowledge middle reminiscence chips.

Just like the electronics gross sales, semiconductor capital expenditures (CapEx) decreased within the first half of 2024, however the development is popping optimistic beginning in Q3 2024.

Reminiscence-related CapEx is surging 34 p.c QoQ and 67 p.c year-on-year (YoY) in Q3 2024 reflecting enchancment within the reminiscence IC market in comparison with the identical interval of the final 12 months.

In This fall 2024, complete CapEx is predicted to leap 27 p.c relative to Q3 2024 ranges and 31 p.c YoY, with memory-related CapEx main this progress at 39 p.c YoY.

The semiconductor capital gear section stays robust and is performing higher than beforehand anticipated attributable to substantial investments from China and elevated spending for high-bandwidth reminiscence and superior packaging.

Wafer Fab Tools (WFE) spending elevated 15 p.c YoY and 11 p.c QoQ in Q3 2024. China’s funding continues to play a major function within the WFE market.

Moreover, each the Check and the Meeting and Packaging segments skilled spectacular YoY will increase of 40 p.c and 31 p.c, respectively, in Q3 2024, and this progress is anticipated to proceed for the rest of the 12 months.

In Q3 2024, put in wafer fab capability reached 41.4 million wafers per quarter (in 300mm wafer equal) and is projected to rise by 1.6% in This fall 2024.

Foundry and Logic-related capability continues to indicate stronger will increase, rising 2.0 p.c in Q3 2024 and is projected to rise 2.2 p.c in This fall 2024 pushed by capability growth for each superior and mature nodes.

Reminiscence capability elevated 0.6 p.c in Q3 2024 and is forecasted to take care of the identical tempo of progress in This fall 2024. This progress is pushed by robust demand for top bandwidth reminiscence (HBM) however is partially offset by course of node transitions.

Clark Tseng, senior director of market intelligence at SEMI, says: “The semiconductor capital gear section continues to exhibit progress momentum, bolstered this 12 months by robust investments from China and elevated spending on superior applied sciences.

“Moreover, the continued growth of fab capability, particularly within the foundry and logic segments, underscores the trade’s dedication to assembly the rising demand for superior semiconductor applied sciences.”

Boris Metodiev, director of market evaluation at TechInsights, says: “2024 has proven two sides inside the semiconductor trade.

“Whereas shopper, automotive, and industrial markets have struggled, AI has thrived, boosting common promoting costs in reminiscence and logic merchandise.

“As rates of interest lower heading into 2025, shopper sentiment is predicted to enhance, encouraging bigger purchases and supporting each the patron and automotive markets.”