IDC rated wireless communications as the second-largest sector in the integrated device manufacturing (IDM) chip market during Q1, a period in which it stated inventory levels continued to normalise and demand for high-bandwidth memory (HDM) was fundamental to growth.
A stabilisation in the device market was credited by IDC as a factor in the normalisation of inventory levels: the company noted the impacts of the Covid-19 (coronavirus) pandemic had faded, contributing to a surge in IDM development.
Samsung was the big winner, with IDC noting a 78.8 per cent year-on-year rise in revenue to $15 million. Intel grew 13.9 per cent to $12.1 million and SK Hynix 144.3 per cent to $9.1 million.
IDC stated computing maintained its position as the leading field for IDMs, with the automotive sector showing “signs of sluggishness under the weight of mounting chip inventories”.
The research company noted the industrial market’s share suffered due to stockpiling, with efforts afoot to reduce inventories.
Helen Chiang, head of semiconductor research at IDC Asia-Pacific, predicted manufacturers of memory chips would rule the IDM roost in 2024 and ongoing inventory reduction processes to deliver a turnaround in the automotive and industrial sectors during the second half.
IDC noted DRAM prices were pushed up by a squeeze in the device sector caused by the “growing demand of HBM”, which it noted is priced “four- to five-times higher than traditional memory”.
The rising prices “significantly” boosted “overall memory market revenue”, it stated.
IDC added the release of AI-equipped PCs and smartphones was another market driver, due to the devices needing “more memory content than traditional” models.
It predicts demand for AI in data centres and devices will “remain an important driver” for the IDM sector in the second half.
The post IDC backs high-bandwidth memory gains to continue appeared first on Mobile World Live.
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