We’re pleased to share the Future Horizons Semiconductor Update for November.
For the latest industry insights read on below:
Executive Summary
Annualised growth rates accelerated sharply in September, with Total Semiconductor sales up 25.8 percent vs. September 2024, up from August’s 21.8 percent and similar to July’s 26.0 percent, growth. It was also homing in on August 2024’s 28.5 percent cyclical peak.
Encouragingly, all three sectors still showed positive annualised growth, with Total ICs continuing their lead as the prime industry growth driver, at a robust 31.7 percent, significantly up from last month’s 24.7 percent, with Opto growing at a respectable 8.0 percent rate. In contrast, whilst still positive, at just 0.4 percent growth, Discretes poured cold water on the broader industry recovery.
With the overall semiconductor market still showing strong double-digit annual growth, the overall trend is now on an upward path.
These peaks do not last forever, and we continue to expect to see this trend turn down in the coming months, as per past cyclical patterns, with the only uncertainty being as to when this will happen.
As a sign of what’s to come, September saw month-on-month semiconductor sales decline 8.8 percent from August which, at 11.4 percent growth, was down on July’s 19.4 percent growth.
With Total IC month-on-month growth at minus 9.0 percent, Opto at minus 10.4 percent and Discretes at minus 5.1 percent, all product sectors have now experienced three consecutive months of slowing month-on-month growth.
Forecast Update
Were it not for AI, the chip market’s growth would have been far more muted, with the old-line consumer, industrial, telecom and even automotive product demand still languishing amid high trade tariffs and a slowing world economy.
Whilst there is some comfort to be gained from the fact no-one saw this eye-watering Q3 spurt coming, it highlights the distorting impact of the massive doubling down in the AI Hyperscaler space. It really is now a tale of two markets, a raucous AI party that refuses to die and a moribund everything else.
Read The Full Report Here: https://www.futurehorizons.com/page/137/
