EVs Outrank AI Among Top Revenue Drivers For Semiconductor Industry In 2024: Survey

The automotive is the most important revenue driver for the semiconductor industry.

That’s according to a survey conducted by KPMG LLP and the Global Semiconductor Alliance (GSA). The position is likely attributable to the continuing computerization and electrification of vehicles.

EVs May Be No.1 But AI Grabs Headlines

A close second was artificial intelligence (AI), which jumped up and ranked as the second most important application driving semiconductor company revenue in 2024.

"Automotive is still the top revenue driver, but AI has surged up the list and is the headline in many ways," said Mark Gibson. Gibson is the KPMG Global and US technology, media and telecommunications leader.

Relatedly:

• Microprocessors (including GPUs used for AI) ranked as the top product opportunity for industry growth over 2024
• Implementing Gen AI ranked among the top three strategic priorities for semiconductor companies over the next three years

The AI Chip Bandwagon

The current undisputed market leader in AI chips is Nvidia Corp NVDA.

Nvidia holds the largest GPU share by far for use in data centers. Qualcomm QCOM and Advanced Micro Devices AMD are other big players aboard the AI chip bandwagon.

Also Read: Nvidia On Track To Topple Samsung, Intel As Biggest Chipmaker By Revenue; Will The Momentum Continue In 2024?

Intel INTC just launched its 5th Gen Xeon for servers alongside a Core Ultra semiconductor for mobile, including the new AI PC concept. With this development, Intel would be joining others such as AMD, Qualcomm and Apple Inc AAPL in the AI PC chip arena.

Top 3 Functions Of GenAI Implementation In 2024-25

The top three functions where semiconductor companies are expected to implement Gen AI in the next two years are:

1. R&D
2. Marketing, and
3. Manufacturing

KPMG’s ninth-annual global semiconductor industry survey was instrumental in capturing insights from 172 semiconductor executives about their outlook for the industry in 2024 and beyond.

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