Global chip market climbed to US$150 billion in 2Q24

Market news | August 14, 2024

By Peter Clarke

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The global chip market was worth US$150 billion in 2Q24, up 18.3 percent from the same quarter a year before and up 6.5 percent from US$141 billion in the first quarter, according to the Semiconductor Industry Association.

With strong sequential growth expected in 3Q24 the chip market is on course to exceed the growth rates of mid-teens of percent that many analysts had predicted.

The latest figures from SIA have been buoyed up by the Americas region chip market. This was worth US$14.77 billion as a three-month average in June, up 42.8 percent from the same period a year before.

As a three-month average of sales in June, May and April the data stands as a proxy for the 2Q24. The Americas region has maintained the exceptional growth it has shown throughout 2024. And although the Asian chip markets’ growth dipped slightly it is still showing 21.6 percent year-on-year growth for China and 12.7 percent growth for Asia-Pacific – excluding China and Japan.

Meanwhile Europe’s and Japan’s chip markets shrank year-on-year by 11.2 and 5.0 percent respectively.

Overall this data remains consistent with a consumer AI boom that is manifesting itself through consumer products and datacenters accompanied by market corrections and flatness around industrial, automotive and communications infrastructure.

Three-month average of chip sales by geographic region for June and May 2024. Source: SIA/WSTS.

Monthly data is given by the SIA as a three-month average although the source of the data – World Semiconductor Trade Statistics (WSTS) – tracks sales on a monthly basis. The SIA and other regional semiconductor industry bodies opt to use averaged data because it evens out the actual data, which typically shows troughs at the beginnings of quarters and peaks at the ends of quarters.