According to the latest market research report, in the first half of 2024, electronic product sales were affected by seasonal factors and weak consumer demand, with a year-on-year decline of 0.8%. However, with the rapid development of artificial intelligence (AI) technology, the demand for AI chips and high bandwidth memory (HBM) has significantly increased. It is expected that electronic product sales will rebound from the third quarter of 2024, with an expected year-on-year growth of 4% and a month on month growth of 9%.

The expected rebound is due to the strong demand for electronic products in the market, especially in fields such as smart devices and data centers, where the application of AI technology continues to expand, driving the thirst for high-performance electronic components. Market analysts point out that despite poor sales performance in the first half of 2024, electronic product sales are expected to gradually recover and grow with the recovery of technology demand in the second half of the year.

In specific market segments, the performance of the integrated circuit (IC) market is particularly impressive. In the second quarter of 2024, IC sales increased by 27% year-on-year, and it is expected that this growth rate will further increase to 29% in the third quarter of 2024, which is expected to surpass the historical high of 2021. This trend reflects the widespread demand driven by artificial intelligence, injecting strong momentum into the semiconductor industry. At the same time, in the first half of 2024, IC inventory levels decreased by 2.6% year-on-year, indicating that the market demand for semiconductor products is gradually improving.

Clark Tseng, Senior Director of Market Intelligence at SEMI, pointed out that although semiconductor capital expenditures remained moderate in the first half of 2024, positive market trends will begin to emerge in the third quarter with the push of memory capital expenditures. The strong demand for AI chips and HBM is driving the growth of various aspects of the semiconductor manufacturing ecosystem, indicating an urgent need for high-performance computing and data processing capabilities in the market.

In this context, companies are increasing their investment in AI chips and high bandwidth memory to cope with the rapid changes in the market. The continuous development of AI technology not only drives the sales of electronic products, but also brings new opportunities and challenges to the entire semiconductor industry. With the advancement of technology, the future semiconductor market will increasingly rely on innovative and high-performance products to meet the constantly changing market demands.

It is worth noting that although electronic product sales have faced challenges in the short term, in the long run, the development of AI technology will bring sustained growth momentum to the industry. Market participants should closely monitor technological advancements and changes in consumer trends in order to maintain an advantage in competition.

Overall, despite short-term pressure on electronic product sales in the first half of 2024, the market outlook remains optimistic with the surge in demand for AI chips and high bandwidth memory. It is expected that electronic product sales will gradually recover from the third quarter of 2024, driving the recovery of the entire semiconductor industry. Enterprises need to respond flexibly in this transformation to seize the upcoming opportunities and achieve greater development.

Fushite Technology focuses on the field of power devices, providing customers with power devices such as IGBT and IPM modules, as well as MCU and touch chips. It is an electronic component supplier and solution provider with core technology.