According to recent data, the electronics sales in the fourth quarter of 2023 showed a modest increase of 1% compared to the previous year, signifying the first annual rise since the latter half of 2022. This positive trend is expected to continue in the first quarter of 2024, with a projected 3% year-over-year growth. Additionally, IC sales, which experienced a downturn, rebounded with a significant 10% year-over-year jump in Q4 2023. The improvement in demand and the normalization of inventories are attributed to this recovery. In Q1 2024, further growth of 18% year-over-year is anticipated for the IC market.
There is also positive news on the horizon for capital expenditures and fab utilization rates. Following significant declines in the second half of 2023, a mild recovery is expected to start in Q1 2024. Projections indicate a 9% quarter-on-quarter increase and a 10% year-over-year growth in Memory Capital Expenditure (CapEx), while Non-Memory CapEx is expected to rise by 16% during the quarter, albeit still lower than the levels observed in Q1 2023. Fab utilization rates have exhibited a modest improvement, rising from 66% in Q4 2023 to 70% in Q1 2024. Moreover, fab capacity is forecasted to grow by 1.3% in both Q4 2023 and Q1 2024.
Although equipment billings in 2023 surpassed expectations, growth in the first half of 2024 is expected to be subdued due to seasonal factors. However, industry experts remain optimistic about the recovery of the electronics and IC markets. Clark Tseng, Senior Director of Market Intelligence at SEMI, affirms that while fab utilization is currently low, improvement is anticipated as 2024 unfolds. Boris Metodiev, Director of Market Analysis at TechInsights, highlights the recovery of semiconductor demand, especially in leading-edge semiconductors driven by AI technology. However, he notes that slowing automotive and industrial markets are limiting the expansion of analog semiconductors. Additionally, geopolitical factors are creating excess capacity at the trailing edge.
Overall, the outlook for electronics sales and the IC market in 2024 is positive. With recovering demand and improving market conditions, these sectors are poised for growth in the coming year, setting the stage for a prosperous future in the electronics industry.
FAQ section:
1. What were the sales figures for the electronics industry in the fourth quarter of 2023?
According to recent data, electronics sales in Q4 2023 showed a modest increase of 1% compared to the previous year.
2. Is this the first annual rise in electronics sales since 2022?
Yes, the positive trend seen in Q4 2023 signifies the first annual rise in electronics sales since the latter half of 2022.
3. What is the projected year-over-year growth for the first quarter of 2024?
The first quarter of 2024 is projected to have a 3% year-over-year growth in electronics sales.
4. What happened to IC sales in Q4 2023?
IC sales experienced a significant rebound with a 10% year-over-year jump in Q4 2023 after a period of downturn.
5. What is projected for the growth of the IC market in Q1 2024?
It is anticipated that the IC market will see further growth of 18% year-over-year in the first quarter of 2024.
6. What can be expected for capital expenditures and fab utilization rates in Q1 2024?
A mild recovery is expected in Q1 2024, with projections indicating a 9% quarter-on-quarter increase in Memory Capital Expenditure (CapEx) and a 10% year-over-year growth. Non-Memory CapEx is expected to rise by 16% during the quarter.
7. How has fab utilization rates improved from Q4 2023 to Q1 2024?
Fab utilization rates rose from 66% in Q4 2023 to 70% in Q1 2024, showing a modest improvement.
8. Will equipment billings experience growth in the first half of 2024?
Growth in the first half of 2024 is expected to be subdued for equipment billings due to seasonal factors.
9. What is the outlook for the recovery of the electronics and IC markets in 2024?
Industry experts remain optimistic about the recovery of the electronics and IC markets in 2024, with improving market conditions and recovering demand.
10. How are leading-edge semiconductors performing?
Leading-edge semiconductors, driven by AI technology, are experiencing a recovery in demand according to Boris Metodiev, Director of Market Analysis at TechInsights.
Definitions:
1. IC: Abbreviation for Integrated Circuit, which refers to a small electronic device made up of interconnected electronic components on a semiconductor material.
2. CapEx: Short for Capital Expenditure. It refers to the amount of money a company spends to acquire or upgrade physical assets (property, equipment, etc.) for long-term use in its operations.
3. Fab: Short for Fabrication Plant, which is a facility used to manufacture semiconductors and other electronic components.
4. Trailing edge: Refers to the older or less advanced technology nodes or products in the semiconductor industry.
Suggested Related Links:
1. SEMI – Official website of SEMI, a global industry association representing the electronics manufacturing and supply chain.
2. TechInsights – Official website of TechInsights, a company that provides market intelligence and analysis in the semiconductor and electronics industry.
The source of the article is from the blog japan-pc.jp