WEEKLY NEWS 052

1. Rapid Growth in Global Semiconductor Market: AI as a Key Driver

2. China’s Cloud Market Rebounds with Stabilized Competition

3. Japan’s PC Shipments Surge, Driven by Replacement Demand

4. Gen Z Leads Gen AI Smartphone Wave with Massive Market Potential

5. SK Hynix Advances 16-Stack HBM3E Mass Production Plan

1. Rapid Growth in Global Semiconductor Market: AI as a Key Driver

According to Omdia, the total semiconductor revenue for the first three quarters of 2024 increased by 26% compared to the same period in 2023, reaching $1,020 billion. This growth was driven by strong demand for AI and related semiconductor components. The semiconductor revenue for the first three quarters of 2024, approximately $494 billion, has already surpassed the total revenue for all of 2020. Omdia notes that the global semiconductor market surged significantly in Q3 2024, with revenue growing by 8.5% quarter-over-quarter to $177.8 billion, fueled by the rapid expansion of the AI sector.

Comment: The strong demand for AI is revitalizing the semiconductor industry, marking a recovery from cyclical lows and suggesting potential for market boundary expansion.

2.??China’s Cloud Market Rebounds with Stabilized Competition

A recent report by Canalys reveals that cloud infrastructure service spending in mainland China reached $10.2 billion in Q3 2024, marking an 11% year-over-year increase and a return to double-digit growth. The top three cloud service providers remained unchanged, with Alibaba Cloud (36%), Huawei Cloud (19%), and Tencent Cloud (15%) jointly commanding 70% of the market share.

Comment: Double-digit growth showcases market vitality, but the dominance of leading players may hinder innovation; new entrants must seek differentiation to break through.

3. Japan’s PC Shipments Surge, Driven by Replacement Demand

Data from the Japan Electronics and Information Technology Industries Association indicates that PC shipments (desktop and notebook combined) in Japan soared by 47.5% year-over-year in November 2024 to 707,000 units, marking the fifth consecutive month of growth. Notebooks, accounting for approximately 90% of total shipments, saw a 47.0% year-over-year increase to 594,000 units, while desktop shipments surged by 50.1% to 113,000 units. The surge is attributed to the impending end of support for Windows 10 in October 2025, driving replacement demand.

Comment: The end of Windows 10 support spurred a replacement wave, highlighting Japan's market resilience, though a post-demand slump could follow.

4.?Gen Z Leads Gen AI Smartphone Wave with Massive Market Potential

A Counterpoint Research survey across seven countries, including the U.S., Canada, the UK, France, Germany, Poland, and Japan, found that 32% of respondents are familiar with generative AI (Gen AI). Awareness was highest in North America (72%) and lowest in Japan (7%). Smartphones are pivotal in the adoption of AI technologies, with nearly three-quarters of respondents accessing AI through their devices, particularly Gen Z users. Additionally, 59% of respondents plan to purchase Gen AI-enabled smartphones next year, with the strongest demand in the U.S., followed by Germany and France.

Comment: High awareness and intent indicate AI is going mainstream, but addressing privacy and performance issues will be crucial for sustained success.

5.?SK Hynix Advances 16-Stack HBM3E Mass Production Plan

According to ETnews, SK Hynix has begun preparations for mass production of its 16-stack HBM3E products. The company is currently introducing and testing new manufacturing equipment while optimizing and maintaining existing systems to accommodate the new product line. Key process testing results are reportedly progressing smoothly. SK Hynix aims to provide product samples to customers by early next year, with mass production and supply scheduled for the first half of 2025.

Comment: SK Hynix’s proactive push for HBM3E mass production underscores its technological edge in high-bandwidth memory. Timely execution could solidify its market position and meet rising AI and HPC demands.