(Yicai) March 7 -- The international semiconductor market is expected to expand at a double-digit rate this year, as demand in emerging sectors such as artificial intelligence and fifth- and sixth- generation mobile networks soars, the global vice president of Semiconductor Equipment and Materials International and president of the global chip industry association’s China arm, said yesterday.

"SEMI expects positive growth in semiconductor sales for the next six years, driven by demand for generative AI, growth in the automotive industry, the expansion of IoT devices, and the deployment of 5G/6G technologies,” Ju Long said.

Reaching a trillion-US dollar scale by 2030 is within sight, and it could even happen sooner, Ju said. After slumping 11 percent in 2023, the global semiconductor market rebounded strongly last year, surging nearly 20 percent year on year to USD628 billion.

Global spending on chip-making equipment is expected to reach a record USD112.8 billion in 2024, and should continue to expand over the next three years, the SEMI report said. China has been the world’s largest market for semiconductor equipment for five years in a row.

While growth in China's equipment market is expected to slow this year, investment will continue, Ju said. China remains an important market for semiconductor equipment. The need for greater capacity in China is still rising thanks to growing domestic demand and an emphasis on local production. The technological level in the country is also steadily improving. While there may be overcapacity or bottlenecks at certain points, these are part of the natural development process, and the momentum in China’s chip industry will not stall.

In addition to China and the Asia-Pacific region, which continue to invest in chip manufacturing, North America, Europe, Japan, and Southeast Asia are also ramping up investment in the industry. Even emerging markets like India and the Middle East are beginning to increase their involvement in the semiconductor sector. This also reflects the reshaping of the global semiconductor industrial chain.

Most of the industry’s innovation comes from private firms, Ju said. Governments can provide policy guidance and financial support to nurture these companies. In terms of development patterns, chips are ultimately an international business. While China is adept at exploring new opportunities, innovation depends on interaction with other countries. Chinese firms should set their sights on the global market, he added.

The world’s largest semiconductor exhibition, SEMICON China, will kick off in Shanghai on March 26.

Editor: Kim Taylor