a machine on the counter

Spring 2024 | M&A Report In The Semiconductors & Advanced Materials Industry Sector

By Gunther Hofmann

May 22, 2024

The report below gives a good overview of the Spring 2024 M&A activity in the Semiconductors & Advanced Materials Industry Sector. In January 2024, the Semiconductor Industry Association (SIA) reported global semiconductor sales of $47.6 billion, marking a robust 15.2% increase from January 2023. However, this figure represents a slight dip of 2.1% from December 2023's total of $48.7 billion. These monthly sales figures, compiled by the World Semiconductor Trade Statistics (WSTS) organization, reflect a three-month moving average. SIA, representing 99% of the U.S. semiconductor industry revenue and a significant portion of non-U.S. chip firms, underscores the industry's pulse. John Neuffer, SIA's president and CEO, highlighted the industry's strong start to the year, noting the largest year-to-year percentage increase since May 2022. Projections indicate sustained growth throughout 2024, with double-digit sales growth anticipated compared to 2023. Regionally, year-over-year sales surged in China (26.6%) and the Americas (20.3%), alongside a respectable 12.8% increase in Asia Pacific/All other regions. However, Japan (-6.4%) and Europe (-1.4%) experienced declines. Semiconductors are the backbone of modern electronics; no single nation can achieve complete autonomy or dominance in all facets of semiconductor production. For example, while the US leads in chip design, it depends on Taiwan and South Korea for manufacturing, and Japan for materials and equipment. Moreover, technological progressions like smaller, faster chips, and the exploration of new materials and architectures are likely. With ongoing expansion, concerns regarding climate change may rise, prompting the industry to prioritize sustainable technologies. This could involve energy-efficient chip designs, recycling efforts, and reducing hazardous material usage. Compound semiconductors such as silicon carbide and gallium nitride offer potential for improved energy efficiency and reduced carbon footprint, particularly in automotive and consumer electronics. Despite growth, challenges like supply chain disruptions, IP theft, cybersecurity risks, and talent shortages persist. While nations vie for semiconductor leadership, only time will reveal the eventual victors, but ultimately, rapid development and innovation will benefit all industries and consumers.

Posted by Gunther Hofmann.

Read the Entire Spring 2024 Semiconductors & Advanced Materials Report Here