Initial reports from Taiwan, where the worst earthquake in 25 years struck today, suggest that damage has been thankfully limited relative to the magnitude of the event. While leading chipmakers like TSMC and UMC have paused production in precautionary measures, major production facilities lay well outside the most affected areas. As a result, the event appears unlikely to impact the expected recovery in the chip market this year. After a strong 2022, global semiconductor sales fell 11% in 2023 as excess inventories and a weaker automotive market weighed on the sector. This week, the Semiconductor Industry Association reported that February sales rose 14.3% year on year, continuing a recovery that began in the fourth quarter of 2023. Driven in large measure by demand for artificial intelligence processing chips and related demand for memory, the industry is expected to rise 13% year on year in 2024.
Source: World Semiconductor Trade Statistics, April 2024