Worldwide Demand For Smartphones And Electric Vehicles Fell
Date
1/15/2025 12:06:03 AM
(MENAFN- AzerNews)
By Alimat Aliyeva
The world's largest Semiconductor manufacturers are reducing
investments compared to initial plans due to lower demand for
smartphones and electric vehicles, Azernews
reports.
According to the report, the world's 10 leading semiconductor
manufacturers have adjusted their investment plans for 2024,
reducing the total investment volume by 2% compared to the previous
year, down to $123.3 billion. This is $9.5 billion less than the
plans announced in May 2024, which had projected a 6% increase.
Observers note that the primary reason for the reduction is a
sharp decline in demand for smartphones and other devices, which
had surged to peak levels during the COVID-19 pandemic.
Additionally, a slowdown in the Chinese economy has further
dampened demand. While recovery in demand was expected in 2024,
most industries, except for artificial intelligence (AI), are
experiencing weak demand. Semiconductor investments for electric
vehicles (EVs) are also falling, as demand for EVs in Europe and
the United States is declining.
According to the SEMI, a global association of chip
manufacturers, only 70% of the world's chip production capacity is
currently in use, while 80% is considered the regulatory level in
the sector.
At the same time, companies focused on providing chips for AI
applications are seeing an increase in investments. For instance,
TSMC has estimated its capital expenditures for 2024 at $30
billion, while SK Hynix plans to invest $70.2 billion over the next
five years.
Preliminary estimates indicate that the global semiconductor
market in 2024 will be valued at $626.8 billion, representing a 19%
increase compared to the previous year. However, this growth is
largely driven by the artificial intelligence sector, rather than
automotive and other industrial chips.
This shift in focus highlights the growing importance of AI as a
key driver of the semiconductor market. The rapid advancements in
AI technologies, including machine learning and data processing,
are fueling demand for specialized chips, while traditional markets
like smartphones and EVs are facing a period of consolidation and
slower growth.
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