Global Chip Market Hits $150 Billion in 2Q24

With a strong sequential growth expected in the third quarter of 2024, the chip market is poised to exceed the growth rates in the mid-teens of percent that many analysts had initially predicted.

The most recent figures released by the Semiconductor Industry Association (SIA) have been particularly encouraging, with the Americas region leading the surge in the chip market. In June, the market in the Americas was valued at US$14.77 billion as a three-month average, marking a significant 42.8 percent increase from the same period the previous year.

As a three-month average of sales in June, May, and April, this data serves as a proxy for the second quarter of 2024. The Americas region has consistently demonstrated exceptional growth throughout the year. While the growth in the Asian chip markets experienced a slight dip, China still saw a notable 21.6 percent year-on-year growth, and the Asia-Pacific region (excluding China and Japan) recorded a 12.7 percent growth.

Conversely, both Europe and Japan witnessed declines in their chip markets, with reductions of 11.2 percent and 5.0 percent year-on-year, respectively.

Overall, this data aligns with the ongoing consumer AI boom, which is evident in the increasing demand for consumer products and data centers. Simultaneously, there are market corrections and stability in industrial, automotive, and communications infrastructure sectors.