When will the semiconductor market continue to decline in 2023 and experience a reversal? Recently, some industry insiders are optimistic about the development of the industry in 2024, while others believe that semiconductors are full of opportunities but also face challenges.

Global Wafer Chairman Xu Xiulan recently pointed out that from the perspective of Global Wafer's customers, the revenue outlook for the third quarter has improved, but manufacturers are still destocking. It is expected that the semiconductor industry will officially experience a healthy recovery in the first or second quarter of next year.

The International Semiconductor Industry Association (SEMI) recently stated that the global semiconductor industry has bottomed out in the second quarter of this year, but the process of inventory depletion is slower than expected, and the recovery of the end market is slow. Even though the semiconductor output value is expected to increase month on month in the third quarter, overall visibility is still low. Regarding this, SEMI believes that next year's recovery is worth looking forward to, and it is estimated that the second quarter will be the starting point for the recovery. Among them, semiconductor equipment and materials are expected to grow year-on-year next year, with the output value returning to the level of one hundred billion US dollars.

Yu Dinglu, Vice President of Applied Materials Group, recently stated to the public that the semiconductor industry has undergone four expansions, from mainframe to computers and networks, and then to the era of mobile cloud computing. In the future, it will enter the era of artificial intelligence (AI) and the Internet of Things. During each generation of conversion, the demand for devices increases by 10 times and the output value increases by 2 times. It is expected that with the advent of the AI and IoT era, the semiconductor output value is expected to reach an unprecedented scale, exceeding $1 trillion.

Yu Dinglu believes that the semiconductor industry is full of opportunities in the future, while also facing five major challenges. Firstly, the complexity of manufacturing technology has increased, secondly, costs have increased, thirdly, the pace of research and development and production has become faster, fourthly, carbon emissions, and fifthly, talent shortage. The semiconductor ecosystem needs to work together to solve problems.