TechInsights: The integration of advanced computing capabilities at the edge is expected to bring significant growth.

TechInsights said that semiconductor capacity utilization fell to its lowest level in nine years in 2023 and is not expected to be optimistic in 2024. The wafer foundry capacity utilization is expected to remain below 80% for the whole year, and the IDM capacity utilization will further decline compared with last year. Considering the current inventory level and weak demand in consumer, automotive, and industrial sectors, this decline is not unexpected.Despite the sluggish semiconductor market demand, these companies are still continuing to increase their capacity, which is expected to grow 6% this year and another 8% next year. This expansion reflects their commitment to long-term growth and their expectations for future demand, even though the current market faces challenges. It is not surprising that fabs are competing to increase their capacity at the 2nm node and below, as edge AI is expected to be a significant driver for these technologies, with a 64% compound annual growth rate from 2024 to 2030.The ongoing expansion of semiconductor capacity reveals the industry's strategic focus on future development. As companies invest in cutting-edge technologies and aim to introduce capacity at the 2nm node and below, they are leveraging the growing demand for applications such as edge AI. Edge integration of advanced computing capabilities is expected to bring significant growth as it enhances processing capabilities directly at the data source, reducing latency and improving efficiency.