TechInsights: Semiconductor market segmentation deepens, AI-related demand to drive a 30% surge in IC sales this year

TechInsights said that order activity for storage and advanced packaging remained strong as expected last week, but the consumer segment performed poorly due to weak demand for consumer electronics. In TechInsights' September update, OEM IC inventory levels were higher than expected in Q2 2024, as consumer electronics continued to work through inventory. Non-storage IC inventory was also slightly above expectations, impacted by weak demand in automotive and industrial. However, storage IC inventory levels fell 4% in Q2, compared to the expected 2%, due to high demand for AI data centers. The market's bifurcation has become more pronounced. The demand for AI-related semiconductors, which have higher ASPs, will drive IC sales to surge 30% in 2024.