Global semiconductor revenue expected to be $624 bn in 2024: Report

The global semiconductor revenue is expected to grow 16.8% in 2024, taking the total to $624 billion, a report from Gartner has shown. It is supposed to be a bounce-back year for the semiconductor market, which despite the fast pace of innovation in the field of artificial intelligence is forecasted to decline 10.9% and reach $534 billion.

“We are at the end of 2023 and strong demand for chips to support artificial intelligence (AI) workloads, such as graphics processing units (GPUs), is not going to be enough to save the semiconductor industry from double-digit decline in 2023,” said Alan Priestley, VP Analyst at Gartner. “Reduced demand from smartphones and PC customers coupled with weakness in data centre/hyperscaler spending are influencing the decline in revenue this year.”

There is also demand for AI workload accelerators, driven by the developments in generative AI and large language models space which requires deployment of high-performance GPU-based servers and accelerator cards in data centres. As per Gartner’s estimates, by 2027, the integration of AI techniques into data centre applications will result in more than 20% of new servers including workload accelerators.

While the Gartner report does not specify data for India region, the field has been quite buzzing with the launch of Semiconductor Mission and the subsequent investment by leading chipmakers. The Indian semiconductor market, with an initial valuation of around $23.2 billion, is on a trajectory to reach a substantial $80.3 billion by 2028. This impressive growth is driven by a robust compound annual growth rate (CAGR) of 17.10% during the forecast period.

Further, the Ministry of Electronics and IT (MeitY) announced a $10 billion investment in the India Semiconductor Mission which will be utilised towards providing incentives for manufacturing, the design linked incentive (DLI) scheme, among other initiatives. 

Micron has begun construction of its $2.75 billion semiconductor plant in Gujarat, and another major global player AMD inaugurated its largest design centre last week as part of its planned $400 billion investment in India. India may get three more semiconductor chip fabrication technology units in the next few months, said Ashwini Vaishnaw, Union Minister for electronics and information technology, at the inauguration ceremony of AMD’s centre. He added that the cumulative investment will be to tune of $8-12 billion, during an interaction with media.