Monthly-Market-Insight-November - Flipbook - Page 4
General Market Updates
Semiconductor Supply Chain November 2024 Overview
As of November 2024, the semiconductor supply chain remains dynamic, influenced by
technological advancements, geopolitical factors, and increasing demand for advanced chips.
Technological and Market Trends:
• The industry is seeing significant investments in advanced technologies like extreme ultraviolet (EUV)
lithography for smaller, more powerful chips. Integration of AI and IoT into manufacturing is enhancing
efficiency and production management.
• Demand for semiconductors continues to rise, especially for applications in AI, autonomous vehicles, and 5G
technology. Global semiconductor sales are rebounding from a cyclical downturn and are projected to
experience double-digit growth in 2024.
Geopolitical Factors and Policies:
• The U.S. CHIPS and Science Act has spurred domestic semiconductor manufacturing, with over $450 billion in
investments announced across the country, aiming to secure a larger share of global production. However,
challenges such as workforce shortages persist, with a projected deficit of engineers and technicians by 2030,
• Export controls on advanced semiconductors and related equipment, particularly targeting China, are
reshaping global supply chain dynamics. Meanwhile, China continues to invest heavily in achieving selfsufficiency in chip production.
Global Supply Chain Shifts:
• Companies are diversifying their manufacturing bases, adopting a "China+1" strategy by expanding
production in countries like India and Vietnam. These regions are becoming attractive due to cost advantages
and government incentives.
• Taiwan and South Korea remain pivotal in advanced chip manufacturing and testing, while Japan and Europe
specialize in semiconductor equipment and materials.
The global semiconductor industry is poised for significant growth, driven by innovation and strategic policy
actions, but also faces challenges such as geopolitical tensions and supply chain vulnerabilities .
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