According to data released by the World Semiconductor Trade Statistics Organization (WSTS), global semiconductor sales grew 16.3% year-on-year in February 2024, achieving year-on-year growth for the fourth consecutive month, showing a gradual strengthening of the industry‘s upward trend.

Tianfeng Securities analysts Pan Bright, Luo Yiyang said in a report on April 12, the current cycle of upward movement is expected to AI is the main driving force. It is expected that the first half of the industry inventory back to normal water level, part of the link is also expected to prioritize the start of inventory replenishment.

Centaline Securities analyst Zou Chen in the April 12 report also pointed out that the semiconductor industry is currently in the bottom region of the cycle, valuation is lower than the median value of the last decade. Consumer demand is gradually recovering.

WSTS also expects the global semiconductor market to grow strongly in 2024, with a projected year-on-year growth of 13.1% and a market size of $588 billion. Growth is expected to be driven primarily by the memory industry, which alone is expected to reach around $130 billion in 2024, a year-on-year increase of more than 40%.

As the world‘s largest foundry, TSMC‘s consolidated revenue in March 2024 amounted to approximately NT$195.211 billion, an increase of 7.5% sequentially and 34.3% year-on-year, which also brings positive signals for the industry trend.

Component distributors also delivered bright results.

WenYe‘s consolidated revenue for the first quarter of this year totaled approximately NT$192.7 billion, a record high for a single quarter, an increase of approximately 60% from the same period last year, and exceeded the high estimate of NT$165 billion to NT$175 billion presented at the last legal briefing.

First-quarter consolidated revenue of NT$181.903 billion, down 0.6% quarter-over-quarter and up 25.6% year-over-year, also reaching the second highest level in the same period last year. It also exceeded the previous estimate of NT$160 billion to NT$170 billion.

Not only is the transaction warming up, even the long plunge in storage vendors have also begun to raise prices one after another.

Western Digital notified major customers on April 8, will be in the second quarter of this year to increase the supply price of SSDs and HDDs. Samsung is also ready to raise SSD prices, the second quarter SSD prices by up to 25%. There is also affected by the earthquake some time ago, Micron also proposed to most customers to raise the Q2 product offer, an increase of more than 20%. Price negotiations are still ongoing.

According to Everbright Securities research report pointed out that as of the fourth quarter of 2023, the original factory profits are very substantial improvement, individual companies have even begun to restore profitability. By the first quarter of 2024 after experiencing price increases, it is expected that most of the company‘s profit margins have been significantly increased.