Global chip market forecast to grow to record $588 billion in 2024

The global semiconductor market is expected to grow 13.1% in 2024 to a record $588.36 billion, following a slump this year, thanks to growing demand for chips used for artificial intelligence, according to a forecast by an industry organization. The World Semiconductor Trade Statistics, an organization formed by major chip manufacturers, revised its growth forecast higher for the next year from the previous growth estimate made in June of 11.8%. If realized, the market size in terms of billings will exceed the previous record of $574.08 billion in 2022. In 2023, the market is expected to decrease 9.4% to $520.13 billion due to weaker demand for memory chips. The optimistic outlook comes as the industry has started to see signs of recovery in demand driven by widespread use of generative AI following the launch of ChatGPT, an AI chatbot developed by U.S.-based OpenAI, and improving sales of PCs and smartphones.