Samsung Leads as Storage Chip Demand Rebounds

According to the latest data from market research firm Counterpoint, the global semiconductor market, including the storage sector, is projected to see a 19% year-on-year revenue growth in 2024, reaching $621 billion. This marks a strong recovery for the semiconductor industry after a downturn in 2023, driven by the growing demand for artificial intelligence (AI), an increase in storage chip demand, and rising prices.

The global storage chip market is expected to experience a significant 64% revenue increase, mainly fueled by a resurgence in demand and price hikes in 2024. Additionally, the booming high-bandwidth memory (HBM) market, spurred by AI applications, further supports the overall growth in the storage sector.

In terms of the top ten semiconductor companies worldwide (excluding foundries), Samsung Electronics remains the leader with an 11.8% market share. This dominance is primarily due to the dual growth in demand and prices for storage chips, along with effective inventory adjustments and restocking in its smartphone business. Samsung has also successfully attracted AI and high-performance computing (HPC) clients to adopt advanced manufacturing processes. Despite facing challenges such as delays in HBM3e and pressure from low-end memory products, Samsung maintains a strong market position.

Other leading semiconductor companies include SK hynix (7.7%), Qualcomm (5.6%), Broadcom (5%), Intel (4.9%), Micron (4.8%), NVIDIA (4.3%), AMD (4.1%), MediaTek (2.6%), and Western Digital (2.5%).

Looking ahead, Counterpoint analysts believe AI chips will become a central battleground. The increasing demand for AI-driven GPUs and HBM is expected to lead to continued high growth in storage chips, data centers, and edge computing in the coming years. As the storage market rebounds, HBM is anticipated to be a key breakthrough, with the HBM market expected to see a growth rate of over 100% by 2025.

Although the PC and server markets remain sluggish, it remains to be seen whether companies like Intel can turn the tide by leveraging AI PCs and their foundry services (IFS). In this evolving landscape, the rise of AMD and Arm architecture continues to erode Intel’s market share.

Counterpoint analysts also noted that the United States remains the core of the global semiconductor industry, home to numerous high-value semiconductor companies, and plays a critical role in driving global innovation and market growth. With the ongoing rise in demand for AI and high-performance computing, U.S.-based semiconductor leaders are expected to continue playing a pivotal role in shaping future market competition.