The global semiconductor market will reach a volume of $1 trillion this year, which happened four years earlier than planned, thanks to the development of artificial intelligence

The semiconductor market growth rate is accelerating thanks to artificial intelligence

*Until recently it was forecast that the industry's annual turnover would reach $1 trillion only by the end of the decade. However, the AI boom is driving the market toward this milestone significantly faster.*

IndicatorResult 2023Forecast for 2024Total turnover$792 bn +26 % → over $1 trillionLogical components+40 % to $302 bnPrices rise faster than volumesMemory+35 % to $223.1 bnprice acceleration in the second half

What the SIA chief John Noyffer says
- The SIA (Semiconductor Industry Association) is an association of mainly American companies.

- According to Noyffer, semiconductor technology underpins almost every critically important industry, so its market growth reflects on other sectors as well.

- It was previously thought that the $1 trillion mark would be reached only in 2030; now it could appear already this year.

How the dynamics are changing
- Prices rise faster than production volumes, so real revenue growth is not always proportional to sales growth.

- In the second half there is a price acceleration, especially in the memory segment.

- Regional analysis shows that all major macro regions (except Japan) demonstrate growth.

Why the market remains cyclical
Noyffer emphasizes that the cyclical nature of the semiconductor market will remain unchanged, but overall turnover is growing.

- The trade confrontation between the US and China continues to have a negative impact, but the AI boom mitigates its effect.

- In the long term the American industry will thrive provided there is more active government support for research and development.

- Open immigration policy remains critically important for attracting qualified talent from abroad.

Conclusion: Artificial intelligence accelerates semiconductor market growth, allowing it to potentially exceed the $1 trillion mark already this year. Key factors – prices, regional differences, and geopolitical conditions – continue to influence industry dynamics.