The semiconductor industry will grow in 2024. Credit: Getty Images/OsakaWayne Studios.

The semiconductor industry, which experienced a slowdown throughout 2022 and 2023, will return to growth in 2024, according to research company GlobalData. 

Revenue within the semiconductor sector experienced a slowdown of 9.4% from 2022 to 2023, according to World Semiconductor Trade Statistics. 

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The slowdown was due to the cyclical nature of the industry, combined with supply chain disruptions, component shortages, the global economic downturn and geopolitical turmoil, according to GlobalData’s Tech, Media, & Telecom Predictions 2024 report. 

Despite the slowdown and decline in revenue, demand for semiconductors has remained extremely high. GlobalData’s 2024 report cites NVIDIA’s 100% year-on-year revenue growth in the last two reported quarters as evidence of the industry’s importance.

The research company believes the semiconductor industry will return to growth in 2024, as the rollout of new products at the end of the inventory correction drives semiconductor sales through 2024 and beyond.

Strong demand from endpoint device manufacturers and AI servers will ensure that the AI chips market experiences sustainable growth in 2024, according to the report. 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The research company also believes that Nvidia will become less of a dominant force in the AI chip industry in 2024 due to rising competition in the sector.

Big Tech companies like Alphabet Amazon and Microsoft are also decreasing their reliance on Nvidia as they create their own AI chips, according to the report.

AI chip revenue will reach $130bn by 2030, according to the research company’s long-term forecasts.