The semiconductor industry will continue to rebound significantly in 2024 at a significant growth rate. This rebound has been driven by growing demand across various industries and applications. While there is general optimism about the industry's growth potential, there are concerns about workforce size, R&D investment, and high inventory management.

Heading into 2024, the semiconductor industry is poised to rebound sharply from the headwinds of last year's third quarter. IDC analysts say growth in 2024 is likely to increase significantly.

AI chips continue to dominate: The demand for AI chips continues to grow. These chips are essential for a wide range of advanced technologies and services. As artificial intelligence continues to penetrate various fields, from big data to smart devices, the demand for AI chips is likely to increase dramatically.

Renewed interest in smartphones: The smartphone market is recovering, thanks in part to advancements in 5G and new AI capabilities. This recovery is a significant boost for the semiconductor industry, as smartphones remain the main consumers of these chips.

Advancements in automotive technology: The automotive industry is increasingly reliant on semiconductor technology. With the development of advanced driver assistance systems (ADAS) and enhanced infotainment systems, automobiles are becoming increasingly technology-centric. This shift is creating a huge demand for automotive semiconductors.

The outlook is generally positive, but there are some risks. An annual survey conducted by KPMG highlights the positive sentiment of industry executives, with most expecting revenue growth. However, there are concerns about the size of the workforce, R&D investment, and the pace of capital expenditures.

In a collaboration with TechInsights, the International Semiconductor Industry Association (SEMI) noted that despite the positive recovery trajectory, the semiconductor industry still faces some ongoing challenges. One of the key issues is how to manage high inventory levels, as this affects the utilization rate of manufacturing plants. However, there are also signs of stability such as the improvement in sales of memory chips and the steady growth in sales of electronic products.

Overall, we believe the semiconductor industry in 2024 has the potential for growth and recovery, driven by technological advancements and demand from key industries. However, this positive trend has been somewhat undermined by potential risks as the industry faces labor and investment challenges while managing existing inventories. The new year is promising, but it will take some strategic planning to actually benefit from these newfound opportunities.