Hardware

The introduction of PCs capable of handling AI on-device, coupled with the beginning of a commercial refresh cycle, is a sign of hope for the global PC market. This is timely, particularly as the industry went through a period of inventory rebalance in 2023, contributing to a 15 percent fall in shipments during the year. However, with the global economy nearing recovery, so has the PC market, with shipments finally showing signs of growth moving into 2024.

Data centers are forecast to receive increased investment in 2024. Security and efficiency have been enhanced by the implementation of AI, processes that require specialized AI chips. Advanced applications such as 5G, the Internet of Things, and generative AI will benefit from advancements in AI chip technology and the development of both hyperscale and edge data centers, specialized facilities located closer to end-users.

Governments and companies across the entire semiconductor value chain have had to navigate changing demands, supply chain imbalances, and geopolitical factors. As a result, action plans and policies have had to be established in order to protect the supply of chips. Following a brief decline in 2023, the semiconductor industry must overcome new challenges as it surges once again in 2024, fueled by the AI boom and a recovering memory semiconductor market.

Smartphones represent a key market for the semiconductor industry, especially as these devices become more advanced and able to support 5G, AI, and immersive technology applications. Servers and data center environments are set to become an even more important opportunity, with graphics processing units being deployed for the training and running of generative AI applications. Furthermore, with more electric vehicles hitting the roads, demand from the automotive sector is only set to grow.