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April 2024 Newsletter

Apr 30, 2024

April 2024 Updates for Design Engineers 

Read the latest semiconductor and electronics news and updates. 

In this edition:

  1. Semiconductor Industry Continues Growth Despite Monthly Dip

  2. Intel Unveils Gaudi 3 Chip to Challenge NVIDIA in AI Market

  3. US Surpasses China as Taiwan's Top Export Market Amid Microchip Boom

Semiconductor Industry Continues Growth Despite Monthly Dip

The Semiconductor Industry Association (SIA) reported, on April 3rd, that global semiconductor industry sales reached $46.2 billion in February 2024, marking a 16.3% increase compared to February 2023, although there was a 3.1% decrease from January 2024. Compiled by the World Semiconductor Trade Statistics (WSTS) organization, this data represents a three-month moving average.


John Neuffer, SIA president and CEO, emphasized that while month-to-month sales dipped slightly, February sales remained significantly higher than last year, reflecting strong year-to-year growth since mid-2023. Neuffer also projected continued market growth throughout the year.

Region-wise, year-over-year sales increased in China (28.8%), the Americas (22.0%) and Asia Pacific/All Other (15.4%), but decreased in Europe (-3.4%) and Japan (-8.5%). However, month-to-month sales declined across all markets: Asia Pacific/All Other (-1.3%), Europe (-2.3%), Japan (-2.5%), the Americas (-3.9%), and China (-4.3%).


Despite the monthly decline, the semiconductor industry's upward trajectory remains robust, with expectations for continued growth throughout the year. However, this growth could be challenged by some supply chain restrictions. With a worldwide presence in over 30 countries, McKinsey Electronics continues to leverage its robust supply chain resources, providing you with peace of mind so you can focus on what matters: your business.

Intel Unveils Gaudi 3 Chip to Challenge Nvidia in AI Market

At its Vision event on April 9, Intel unveiled a new version of its artificial intelligence (AI) chip designed to compete with Nvidia's dominance in the AI market. The new Gaudi 3 chip, built using TSMC’s 5nm process, promises significant improvements in AI model training and inference speeds compared to Nvidia's H100 processor.

Intel's Gaudi 3 chip is capable of training large language models 50% faster than Nvidia's previous generation H100 processor. It also excels in computing generative AI responses, known as inference, for certain models. Intel's vice president of strategy and product management, Jeni Barovian, emphasized that customers are seeking choice and an open approach in the industry. 

Intel has struggled to compete with Nvidia in the data center chip market, where Nvidia holds about 83% share. Google's custom tensor processing units (TPUs) make up most of the remaining 17%. The Gaudi 3 chip, featuring two main processor chips fused together, is more than twice as fast as its predecessor. It can be combined with thousands of others to create powerful computing clusters.

The Gaudi 3 chip will be available to server builders like Supermicro and Hewlett Packard Enterprise in the second quarter of this year. Intel's next generation of AI chips will be code-named Falcon Shores.

US Surpasses China as Taiwan's Top Export Market Amid Microchip Boom

Taiwan's Finance Ministry reported that the United States has become its main export market, surpassing China for four consecutive months. This shift is attributed to increased demand for electronic components and AI technology. Despite China's claim over Taiwan, the island nation has long been a major supplier of advanced silicon wafers used in various industries, including e-vehicles, satellites and fighter jets.

Traditionally, China has been Taiwan's top export destination for two decades. However, December 2023 data revealed that Taiwan exported $8.49 billion worth of products to the United States, compared to $8.28 billion to mainland China.

This trend continued through March 2024, with US exports increasing by 65% to $9.11 billion, marking a 6% jump, while mainland China received $7.99 billion. It's worth noting that these figures exclude Hong Kong, which maintains its separate customs status. When combined with mainland tallies, China remains the top destination for Taiwanese goods.

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