Does the recovery in demand expected for 2024 pose potential supply problems for customers?

After a slight decline in 2023, we expect a return to growth in 2024, a sign that demand is regaining momentum. However, this recovery brings with it an important aspect to consider.

Global silicon wafer shipments are projected to decline 14% in 2023, down to 12.512 million square inches (MSI) from a record 14.565 MSI in 2022. This is mainly due to weak semiconductor demand and challenges related to macroeconomic conditions.

With 2024 in sight, we expect a remarkable recovery, but this recovery could put a strain on our customers’ inventories. Demand for wafers and semiconductors is regaining momentum and inventory levels are normalising. It is likely that many companies will find that their inventories may not be sufficient to meet the growing demand.

Now more than ever, it is essential for you, our customers, to assess your existing inventories and consider strategies for ensuring that you, in turn, can meet your customers’ growing demands. Good stock management and planning will be crucial to meet this challenge efficiently.

Please feel free to contact us for any information or assistance you may need in this preparation process.