Smartphone Semiconductor Market Set To Rebound In 2024
TSMC To Lead Transition To Advanced Nodes
After enduring two consecutive years of significant declines, the smartphone semiconductor market is primed for a turnaround in 2024.
Per Counterpoint Research’s latest Smartphone AP-SoC Long-term Shipment Forecast by Node and Foundry, anticipated smartphone Application Processor-System on Chip (AP-SoC) shipments are set to rebound by 9% year-on-year.
The resurgence in shipments is primarily attributed to the migration of flagship devices from 5/4nm chips to more advanced 3nm chips, alongside an anticipated surge in demand for premium and ultra-premium smartphones.
Taiwan Semiconductor Manufacturing Company (TSMC) is poised to emerge as the primary beneficiary of this transition in the long run.
“Amidst the surge in demand for advanced nodes, TSMC stands to gain significantly over the long term,” said Brady Wang, Associate Director for Counterpoint Research’s Foundry and Semiconductor 360 research services.
“Additionally, with the exponential growth in AI semiconductors, the short-term outlook appears even more promising.”
5G Offerings Shift
Driving the transition to advanced nodes, the 5/4nm chips are projected to maintain long-term relevance, particularly as smartphone Original Equipment Manufacturers (OEMs) increasingly shift towards entry-level 5G offerings.
This strategic move is fuelled by the expansion of emerging markets, rising consumer awareness, and escalating demand for 5G-enabled devices, which are in tandem with expanding network coverage.
Parv Sharma, Senior Analyst at Counterpoint’s Semiconductor 360 research service, noted the dominance of major players like MediaTek and Qualcomm in navigating the 4G-to-5G transition.
“While MediaTek is well-positioned to capitalise on its leading-edge technologies, Qualcomm is expected to maintain its dominance, commanding nearly 50% share of the 5/4nm segment through 2025,” Sharma explained.
While Semiconductor Manufacturing International Corporation (SMIC) is anticipated to witness increased relevance in the 7/6nm segment, challenges loom large in transitioning towards more advanced nodes due to constraints imposed by bans on Deep Ultraviolet (DUV) equipment.
The elusive 2nm node is forecasted to materialise by 2026, coinciding with the anticipated release of Apple’s iPhone 19 series.
The projected rebound in smartphone semiconductor shipments signals a promising trajectory for the industry, underscored by technological advancements and evolving consumer preferences towards cutting-edge mobile devices.
Featured image: There is an escalating demand for 5G-enabled devices. Credit: Rodion Kutsaie
