The global semiconductor sales rates are currently record-high. Recent information from WSTS indicates that global semiconductor sales have recently hit their highest levels in the past 20 years. In the fourth quarter of 2023, there was an 8.4% increase in global semiconductor component sales compared to the previous quarter and a notable 11.6% surge compared to the same quarter the previous year.

Semiconductor sales soar and AI is the reason behind it

The significant contributing factor to the upward trend in semiconductor sales is the prevalence of Artificial Intelligence. AI is now an integral part of our lives, and its use is becoming widespread across almost every sector. However, it’s important to note that the operation of AI-based software is quite resource hungry, leading companies to face challenges related to high memory bandwidth. The surge in sales of semiconductor devices, especially in storage, is attributed to the increase in storage chips.

Semiconductor market change

Samsung managed to have a remarkable 49% increase in revenue compared to the same quarter the previous year, while SK hynix and Micron saw revenue spikes of 24.1% and 17.9%, respectively. During this period, the collective revenue of these three manufacturers surged by 33%. Notable performers in revenue growth during this period include MediaTek (17.7% increase), Qualcomm (14.2%), and NVIDIA (10.4%).

Company revenues

After a decline since 2021, global semiconductor sales rates experienced a significant upswing in the final quarter of 2023. The growing adoption of artificial intelligence is expected to further drive the increase in semiconductor sales. NVIDIA, the leading manufacturer of the most important artificial intelligence chips, has witnessed a substantial surge in its stock value as well.

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