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2024 Annual Review of the Electronic Components Industry: Cyclical Recovery, AI-Driven Growth, and Accelerated Domestic Substitution

2025-01-08

In 2024, the global electronic components industry bid farewell to the 2023 downward cycle and achieved structural recovery, driven by AI computing power, new energy vehicles and industrial automation. It showed a pattern of high prosperity in AI and storage, moderate recovery in consumer and industrial sectors, and in-depth domestic substitution. This review summarizes the key developments from five core dimensions.

I. Overall Market: Bottoming Out with Steady Growth

The global semiconductor market recovered strongly in 2024, with WSTS data showing sales of about $626.87 billion, a year-on-year increase of 19%. China’s demand accounted for 30% of the global total, and integrated circuit exports exceeded mobile phones to become China’s largest electronic export product. Prices and delivery times differentiated: consumer chips stabilized after a decline, while AI-related products saw rising prices and extended delivery times (20–30 weeks for AI products).

II. Core Tracks: Differentiated Prosperity

 AI & Storage: HBM was in short supply all year, with prices up 40%–60%; Changxin Memory mass-produced DDR5, and Yangtze Memory launched high-performance SSDs.

 Power Semiconductors: New energy drove demand for high-voltage MOSFETs and IGBTs, with auto-grade IGBT delivery time up to 30–40 weeks; domestic manufacturers increased their market share.

 Passive Components: High-capacity MLCCs and auto-grade inductors were in short supply; domestic Fenghua Hi-Tech and Sunlord Electronics expanded high-end production capacity.

 Consumer Chips: Moderate recovery in shipments, but slow inventory destocking and low prices persisted.

III. Supply Chain: Geopolitical Impact and Inventory Restructuring

The U.S. expanded export controls on semiconductors to China, prompting a diversified supply chain layout of "China + Southeast Asia + North America". The industry destocked in the first half, and AI/new energy components started restocking in the second half, with corresponding price increases.

IV. Domestic Substitution: Accelerated High-End Breakthroughs

Domestic substitution advanced in depth: analog chips (Sheng邦, Sirui Pu) and power semiconductors (Sida, Hongwei) achieved mass substitution; digital chips and passive components made breakthroughs in high-end and auto-grade fields. 31 M&A events promoted industrial integration.

V. Distribution Pattern: Global Shuffling and Domestic Rise

WT Micro topped the global distributor ranking; 27 listed Greater China distributors achieved $21 billion in revenue, growing 27% year-on-year. Distributors shifted to "agency + spot" models, with technical services becoming core competitiveness.

VI. Summary and Outlook

2024 was a crucial year for cyclical reversal and domestic breakthroughs. Looking to 2025, AI servers and new energy vehicles will remain growth drivers, domestic substitution will deepen, and a diversified supply chain will become mainstream.

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