Q3 Semiconductor Industry Grows 8.4% Sequentially
On November 27th, Omdia released its latest report, indicating an 8.4% increase in the semiconductor industry's overall output in the third quarter of 2023, propelled by sustained demand for artificial intelligence (AI) applications, totaling $139 billion.
The report underscores the enduring significance of AI demand in the semiconductor sector during the third quarter. Key contributors to this growth include companies such as NVIDIA and SK Hynix, both leveraging AI technologies. NVIDIA witnessed an impressive 18% growth in semiconductor revenue, reaching $12 billion, compared to the $4.6 billion recorded in the same period the previous year—an increase of $7.3 billion. Similarly, SK Hynix reported a substantial 26% growth in semiconductor revenue, reaching $6.7 billion.
Omdia's insights reveal that while AI demand is a major driver, the semiconductor industry's expansion is not solely dependent on this factor. After five consecutive quarters of decline, the industry has now experienced growth for two consecutive quarters. Notably, in the third quarter, four out of the five major memory manufacturers achieved double-digit growth in memory chip revenue, compared to the second quarter. The increasing demand for applications beyond AI is contributing significantly to this positive trend.
