By Koen Verhaege, CEO, Sofics

Koen Verhaege

Navigating Challenges and Embracing Opportunities in 2024

The challenging year 2023 is finally wrapping up… Predictions were that it would be a transition year towards a better 2024. So, let’s welcome 2024!

First, let’s look back. 2022 was notable, albeit for the wrong reasons: warehouses were being filled to brace against new shortages. In 2023, these overstocks created a steep drop in production. Consider the foundry capacity utilization numbers: they are near 80% today, compared to being at all-time highs, above 100%, last year.

The key factors shaping 2024 will likely be geopolitics and the subsequent influx of tax dollars, as well as, the evolving role of Artificial Intelligence in our workplaces.

Geopolitics

Geopolitical tensions will be fought and lost through the use of dollar monsoons – not by war. All (wannabe) powers are releasing tsunamis of dollars (euros, won, yen…) to bring semiconductor production “home”. Politicians are sharpening their scissors to cut ribbons at new manufacturing plants. Many if not all of these plans will fail, at least they will fail to create autonomy or independence.
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