Global silicon wafer shipments in the third quarter of 2024 increased 6.8% year-over-year due to strong demand for AI wafers despite high inventory levels, according to a new report.

According to the latest report from SEMI, an industry association representing the global electronics industry supply chain, global silicon wafer shipments in the third quarter of 2024 were 3.214 billion square inches, up 5.9% from the previous quarter. This is a 6.8% increase from 3.01 billion square inches in the third quarter of last year.

“The upward trend in silicon wafer shipments that began in the second quarter of this year continued in the third quarter,” said Li Chengwei, chairman of SEMI SMG (Silicon Manufacturers Group) and vice president and chief controller of GlobalWafers. “While inventory levels have declined across the supply chain but remain high, demand for wafers used in AI continues to be strong, and demand for mobile phones and other consumer products is also improving. In contrast, demand for automotive and industrial wafers is slowing. “Silicon wafer shipments are expected to continue their upward trend in 2025, but will not reach the peak levels recorded in 2022,” it said.

Silicon wafers are a key material for semiconductor manufacturing and are therefore an essential component of virtually all electronic products, including computers, telecommunications products, and consumer electronics.

Precision-machined silicon disks are produced in diameters ranging from one inch to twelve inches and are used as the substrate material on which most semiconductor chips are manufactured.