The International Semiconductor Industry Association (SEMI) recently released the "Mid-Year Total Semiconductor Equipment Forecast - OEM Perspective" (hereinafter referred to as the "report"), which shows that the total global semiconductor equipment sales are expected to reach a record high of $109 billion in 2024, a year-on-year increase of 3.4%, and are expected to further set a new high of $128 billion in 2025.

The report suggests that in 2024, as the semiconductor industry consolidates and the inventory of products is reduced, the demand for downstream applications driven by artificial intelligence (AI), XR, and consumer electronics will warm up, leading to a rebound in the prices of memory chips, and the global semiconductor sales will gradually bottom out and rebound.

In the first half of the year, several CEOs of foreign semiconductor companies have come to China to attend conferences or launch events, expressing their optimism about China's economic prospects while also striving to deepen innovative cooperation with Chinese partners.

Global RF chip giant Qorvo has observed that with the surge in AR/VR, cloud computing, and remote work, the demand for higher throughput and lower latency in the global consumer electronics market is also on the rise.

In this regard, Lin Jianfu, Senior Marketing Manager of Qorvo's Wireless Connectivity Business Unit in the Asia-Pacific region, recently told reporters from First Financial at the 2024 Munich Shanghai Electronics Exhibition that if you look at the entire market, China currently has the largest usage of Wi-Fi 7 globally. "Whether on JD.com, Taobao, or Tmall, if you just enter 'Wi-Fi 7 router,' you will get relevant information. From our current market perspective, China is the largest shipper of Wi-Fi 7 chips."

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"Now, Wi-Fi is not only for consumer applications like internet browsing and video watching, but it has extended to industrial scenarios, including smart infrastructure, high-definition monitors, AR/VR wearable devices, as well as Industry 4.0, smart factories, and electric vehicle networking," said Lin Jianfu. "Currently, China is the country that has adopted Wi-Fi 7 technology and started to scale up the fastest." He believes that this year, Wi-Fi 7 will experience a significant surge in applications in China.

Qorvo brought three major themes to the exhibition: "Consumer Electronics, Internet of Things, and Automotive," especially showcasing its innovative achievements in silicon carbide technology, demonstrating the company's leadership position in the electronics industry. Among them, the Wi-Fi 7 technology demonstrated by Qorvo further expands the possibilities of wireless connectivity, providing solutions with low power consumption and compact packaging, bringing a smooth and efficient connection experience for cloud gaming, AR/VR, high-definition video streaming, and smart home applications.

UWB (Ultra-Wideband) digital keys are also quite popular in the Chinese market. Qorvo also showcased UWB (Ultra-Wideband) technology, which, with its high-precision positioning, fast response, and low energy consumption, has unlocked more innovative interactive methods in home systems and industrial networking applications. Jiang Xiong, Senior Sales Director of Qorvo, told First Financial reporters that although Apple had already applied UWB technology to AirTag in 2019, what is seen more now is the application of UWB in the automotive field, which also explains why some Chinese mobile phone manufacturers have been actively laying out in the automotive industry. "If the UWB technology used in automobiles can also be further realized in mobile phones, then it will naturally be easier to promote," said Jiang Xiong. He believes that the high-precision positioning and security features of UWB have shown significant advantages in vehicle theft prevention and quick recovery, especially in the European market, where UWB technology has become a mandatory requirement. Currently, the domestic market is also actively following up and adopting UWB technology, especially in the industrial field. Jiang Xiong believes that with the active adoption by the automotive industry and the continuous exploration of UWB technology by mobile phone manufacturers, this technology will gradually become popular with the general public, ultimately achieving breakthroughs in all-round applications and penetrating into everyone's daily life and work.

Steffen Metzger, a member of the Executive Board of Heraeus Group, visited China for the first time this year. He told reporters that in recent years, China has been one of the fastest-growing markets for Heraeus' semiconductor business, and it is expected to have good growth in the next three years. "China's semiconductor industry has seen the emergence of many new players." For Metzger, one of the challenges lies in how to timely understand the needs and potential of the rapidly rising Chinese local enterprises and the market, and to be able to carry out good cooperation in a timely manner.Dual-Driven Growth

Driven by the ongoing global AI boom, the organization TechInsights previously forecasted that the consumer electronics market is expected to surpass the $1 trillion milestone in 2024, building on the $950 billion base of 2023.

In the aforementioned report, SEMI stated that the Chinese mainland market has particularly shone in this round of growth, with semiconductor equipment shipment values projected to exceed $35 billion in 2024, accounting for 32% of the global market share and maintaining its leading position globally.

Tokyo Electron, the world's fourth-largest semiconductor equipment manufacturer, responded to an interview with Yicai Global by stating that the recovery of the semiconductor production equipment market this year has been mainly driven by the replacement cycles of personal computers and smartphones. As for DRAM chips, they have been primarily boosted by generative artificial intelligence. "We believe that AI's contribution to the semiconductor production equipment market will be even greater next year."

Data from the Semiconductor Industry Association (SIA) shows that in May 2024, global semiconductor industry sales reached $49.1 billion, a year-on-year increase of 19.3%, marking the largest increase since 2022. SIA stated: "Driven by strong demand in the Chinese market and artificial intelligence technology, the global semiconductor equipment market is expected to maintain a high-speed growth trend in the coming years." The organization anticipates that the global semiconductor equipment market size will break through $128 billion in 2025, with a year-on-year increase of 17%. (Intern Wu Jiayi also contributed to this article.)