Global chip demand to rise by 2nd quarter of 2024, experts say

Demand from AI and EV sectors is expected to reverse 2023 oversupply issue

The supply and demand situation in the semiconductor market is beginning to improve as inventory adjustments progress. (Photo by Masayuki Kozono)

RYO MUKANO and NAMI MATSUURA, Nikkei staff writers

January 4, 2024 18:19 JST

Updated on January 4, 2024 19:34 JST

TOKYO -- Global semiconductor demand, driven by artificial intelligence-related data centers and the electric vehicle sector, is expected to begin recovering in the April to June period of this year as major chip makers gear up to raise production, according to experts. The resulting turn in the boom-bust "silicon cycle" is expected to help the global economy.