Monthly-Market-Insight-November - Flipbook - Page 2
General Market Updates
U.S. Invests $300 Million to Advance Semiconductor Packaging
Leadership
The Biden-Harris Administration announced up to $300 million in funding for advanced semiconductor
packaging projects in Georgia, California, and Arizona to bolster U.S. innovation in critical industries like AI
and high-performance computing. The projects, led by Absolics Inc., Applied Materials Inc., and Arizona
State University, aim to develop next-generation substrate technologies essential for modern
microelectronics. Paired with private sector contributions, this $470 million investment will drive
breakthroughs in manufacturing, strengthen the domestic supply chain, and support workforce
development, ensuring the U.S. maintains its edge in global semiconductor leadership.
Global Semiconductor Investments Surge Amid Growing Industry Demand
The global semiconductor industry is booming, with Q3 2024 sales rising 23.2% year-over-year, driven by fields like
AI, big data, and new energy vehicles. Nations worldwide, including Japan, the EU, and South Korea, are investing
heavily to secure leadership in chip manufacturing and innovation. Japan plans to invest ¥10 trillion ($65 billion) by
2030 to support semiconductor and AI sectors, the EU is channeling €133 million into photonic chip development,
and South Korea is advancing a Semiconductor Special Act to enhance competitiveness and stabilize its supply
chain.
NAND Flash Prices Set to Decline in Q4 2024 Amid Persistent Market
Weakness
Despite strong demand from enterprise SSDs used in AI applications, the NAND flash memory market is facing
continued pressure, with prices expected to drop between 3% and 10% over the fourth quarter of 2024. Excess
inventory and flat consumer demand, particularly in the Chinese market, have led to cautious procurement
strategies and reduced wafer contract prices. Factors such as inflation, limited practical use cases for AI, and
delayed deployment of AI applications are further inhibiting significant upgrade cycles, resulting in a
challenging environment for memory suppliers. While enterprise SSDs may see modest growth, the overall
memory sector grapples with sluggish consumer markets and constrained price increases.
Global Semiconductor Sales Surge 23.2% Year-on-Year in Q3 2024
Global semiconductor sales reached $166.0 billion in Q3 2024, up 23.2% from Q3 2023 and 10.7% from Q2 2024,
marking the largest quarterly growth since 2016. September sales hit a record $55.3 billion, with significant yearover-year growth in the Americas (46.3%), China (22.9%), and Asia Pacific (18.4%), though Europe saw an 8.2%
decline. The robust performance reflects strong regional demand and record-breaking monthly sales in
September.
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