Semiconductor industry gains as memory demand surges
Recent research from IDC reveals significant trends in the semiconductor industry during the first quarter of 2024.
The report shows that as the device market stabilises, memory applications and inventory levels are normalising, driven by the increasing demand for AI in data centers. This recovery follows the fading of the COVID-19 pandemic. The normalisation – according to IDC – boosted the integrated device manufacturing (IDM) market during the first quarter of 2024, with high-bandwidth memory (HBM) playing a key role.
HBM, which is four to five times more expensive than traditional memory, squeezed the capacity of DRAM in the device market and pushed up its price, significantly boosting memory market revenue. The launch of AI PCs and smartphones, which require more memory, also contributed to this growth. In Q1 2024, three of the top five IDM vendors were memory-related, capturing nearly half of the revenue of the top 10 vendors.
The top 10 vendors included Samsung, Intel, SK Hynix, Micron, Infineon, Texas Instruments, STMicroelectronics, NXP, Sony, and Murata. Memory is expected to continue to be an important driver for the IDM market in the second half of 2024 as AI demand in data centers and devices grows.
| Rank | Vendor | 1Q23 revenue (million USD) | YoY Groth (%) |
| 1 | Samsung | 14,873 | 78.8% |
| 2 | Intel | 12,139 | 13.9% |
| 3 | Sk hynix | 9,074 | 144.3% |
| 4 | Micron | 5,824 | 57.7% |
| 5 | Infineon | 3,959 | -11.8% |
| 6 | Texas Instruments | 3,661 | -16.4% |
| 7 | STMicroelectronics | 3,465 | -18.4% |
| 8 | NXP Semiconductors | 3,126 | 0.2% |
| 9 | Sony | 2,511 | -4.5% |
| 10 | Murata | 2,460 | 12.3% |
In Q1 2024, computing remained the leading IDM application, making up 35% of the market, up from 29% the previous year, followed by wireless communication. However, the automotive market slowed due to high chip inventories, and the industrial market focused on reducing excess inventory. These markets are expected to prioritise inventory adjustments in the first half of 2024 and rebound in the third quarter.
"In 2024, memory makers will continue to be key players in the global IDM market. As inventory levels gradually normalize, the demand in the automotive and industrial fields is projected to rebound in the second half of the year, which will contribute to the growth of the IDM market," said Helen Chiang, Head of Semiconductor Research, IDC Asia/Pacific in a press release.
