Rochester Electronics’ executive VP, Colin Strother, predicts the bottom of the current cycle and then explores industry trends with the potential to drive future growth
The semiconductor industry is notoriously cyclical. Average peak-to-peak of shipped units, excluding memory, over the last thirty-years is around forty-months. With the previous peak being February 2022, we can potentially expect to have been at the bottom of the current cycle in October 2023.
Every cycle is different, and recovery can be unpredictable, but we will see growth across all sectors in 2024. Based on an expected increase of global smartphone sales, the consumer market should anticipate an improvement, however this may be sluggish. We see more substantial growth potential in the hi-rel, industrial and automotive sectors.
Having traveled extensively throughout China this summer, for the first-time post- pandemic, I was amazed at the number of electric vehicles (EVs) on the road. There is no doubt we will see an acceleration in global adoption in the coming years.
Growing discussion around AI is believed to stimulate the industry. While I think it’s too early to predict the overall effect on sales, this will hopefully become another growth accelerant.
As prices and availability continue to fluctuate, it’s essential customers work with authorized suppliers who genuinely have their success in mind. Authorized suppliers who practice strict price discipline and provide proactive data-driven solutions, can enable customer success throughout every aspect of the cycle.
Rochester will continue to drive customer engagement in 2024 by increasing our global physical footprint, continuing our digital transformation, building our product offerings and providing customers with a growing range of contact points, both online and offline, along with deepening our relationships to better serve all.