Semiconductor Rebound in 2024
By Semiconductor

The semiconductor industry is a cornerstone of technological process, formed around 1960, as the fabrication of semiconductor devices became a viable business. 

Today semiconductors are the powerful brains behind a variety of modern technology applications and as we step into 2024 we can expect to see a myriad of developments

LED light displays, gaming devices, air fryers and medical machines such as those used to take your blood pressure, all use semiconductor technology. But what’s more interesting? Semiconductor technology is expected to be a huge player in the development of emerging technology like artificial intelligence. 

 

Investment and growth in the Semiconductor Industry

We are expecting the semiconductor market to return to a growth trend in 2024, with an annual growth rate above 40%, after a decline in the first half of 2023. 

This is due to the gradual recovery of smartphone demand and the now strong demand for AI chips and HPC (high performance computing). 

The return to growth will certainly be welcomed by the US particularly, after Congress passed the Creating Helpful Incentives to Produce Semiconductors for America Act (also known as the CHIPS bill) in August 2022, totalling a $280 billion spend across 5 years. 

What trends will shape the Semiconductor Industry in 2024? 

  • The semiconductor industry is consistently advancing its manufacturing processes so that it can produce smaller, more efficient chips. Smaller nodes, 3D stacking and advanced lithography techniques are enabling the production of smaller and more powerful energy efficient chips in 2024. 
  • While still in its early stages, quantum computing is gaining momentum, presenting both opportunities and challenges for the semiconductor industry. Companies are exploring new materials and processes to create qubits, the fundamental units of quantum computing. As quantum computing inches closer to practical applications, semiconductor manufacturers are at the forefront of this revolutionary technology. 
  • Artificial Intelligence (AI) has been a driving force, and in 2024, it stands prominently at the forefront of semiconductor innovation. The demand for more powerful and efficient AI chips is skyrocketing, with applications ranging from autonomous vehicles to advanced data analytics. Companies are investing heavily in research and development to create chips that can handle complex AI tasks with unprecedented speed and accuracy. 
  • The global rollout of 5G networks is in full swing, and this has a direct impact on the semiconductor industry. As the demand for high-speed, low-latency communication grows, semiconductor manufacturers are under pressure to produce chips that can meet the stringent requirements of 5G technology. This not only includes advancements in communication chips but also in the development of devices capable of leveraging the full potential of 5G networks.
  • Edge computing is reshaping how we process and analyze data. Instead of relying solely on centralized cloud servers, the emphasis is shifting towards processing data closer to the source – at the edge. This decentralization requires semiconductor solutions that can handle the unique challenges posed by edge computing, such as power efficiency and compact designs. Expect to see a surge in the development of chips tailored for edge devices.
  • With an increased global focus on sustainability, the semiconductor industry is also undergoing a shift towards more eco-friendly practices. From energy-efficient chip designs to responsible manufacturing processes, companies are investing in technologies that reduce the environmental impact of semiconductor production.

The semiconductor industry in 2024 is a dynamic and vibrant landscape, driven by technological breakthroughs and societal demands. 

Semiconductor sales are predicted to grow to $1.4 trillion by 2029, the semiconductor market is seeing unprecedented and staggering growth. 

Adapt Talent bridges the talent gap, working with companies that use semiconductor technologies, if you are a business looking for semiconductor professionals, Jack, our semiconductor specialist, would be happy to help. 

Likewise if you are a semiconductor professional looking for a new role or advice on how to accelerate your career, contact Jack today. 

It’s important to keep a close eye on these trends, as they will undoubtedly continue to influence the way we live, work, and connect in the years to come. If you want to stay up to date on the latest semiconductor technology sign up to our mailing list via the form below.