SEMI "Semiconductor Market to Show Signs of Recovery in Q2"

IC Sales and Silicon Shipments Expected to Increase Compared to Q1

The semiconductor market in the first quarter showed signs of contraction due to the semiconductor downturn continuing from last year, but positive forecasts have emerged. In the second quarter, there may be signs of market recovery, such as an increase in silicon shipments compared to the previous quarter. It is also expected that demand could increase from the second half of the year once inventory adjustments are completed by mid-year.

The Semiconductor Equipment and Materials International (SEMI) announced a 'Semiconductor Manufacturing Monitoring Report' with semiconductor market research firm TechInsights on the 16th containing these details.

The report includes a forecast that the subdued atmosphere in the global semiconductor industry may improve somewhat in the second quarter. It also anticipates a gradual recovery starting from the third quarter.

Quarterly fab utilization rate statistics compared to integrated circuit (IC) inventory. The first and second quarters of this year are projections. /
[Image provided by SEMI]

According to the report, current fab utilization rates have decreased compared to last year. For the industry to recover, excess inventory must be depleted, but the rate of reduction is slow. In the semiconductor equipment sector, investment spending on production facilities has been adjusted, prolonging the downturn.

In the second quarter, integrated circuit (IC) sales and silicon shipments may increase compared to the first quarter. The report predicts that the market rebound will proceed gradually from the second half of the year.

Clark Tseng, Senior Director at SEMI, said, "Due to weak semiconductor demand and rising inventory, semiconductor fab utilization rates have sharply declined, but inventory adjustments are expected to be completed by mid-year," adding, "Demand could recover from the second half."

Risto Puhakka, Vice President of TechInsights, explained, "Especially in the memory market, continuous production cuts and reduced capital expenditures will begin to positively impact market fundamentals in the latter half of this year," and said, "We expect the market environment to improve."

This content was produced with the assistance of AI translation services.