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The final quarter of 2024 will go down in the annals of the electronics industry as a period of profound transformation. Between the rise of artificial intelligence as the market’s defining force, the spectacular rebound of semiconductors, Intel’s symbolic fall from grace, and the highly anticipated launch of the iPhone 16, these four months have drawn the outline of a sector in the midst of a full-scale reshaping.
AI: The New King of the Semiconductor Market
While artificial intelligence had been establishing itself since 2023 as the primary driver of chip demand, the final quarter of 2024 definitively cemented this trend. According to data from research firm Gartner, the global semiconductor market grew 21% in value over the full year, reaching $655.9 billion — a spectacular rebound following the 11.1% decline recorded in 2023. Behind this recovery: data center GPUs and AI processors, which emerged as one of the most dynamic segments, with sales nearly doubling year-over-year to surpass $112 billion.
Nvidia embodied this surge with remarkable force. Its semiconductor revenues soared 84% over the year, reaching $46 billion, propelling the company to third place in the global chip manufacturer rankings. The production ramp of its next-generation Blackwell accelerators, launched in Q4 2024, was met with unprecedented enthusiasm: demand was already so intense that by November, market observers noted that the entire planned 2025 production had sold out before even reaching warehouses.
IFA Berlin: A Showcase for Connected Consumer Electronics
In September, the iconic IFA trade show in Berlin brought together the biggest names in the industry to showcase the latest innovations in consumer electronics. The 2024 edition put a particular spotlight on new generations of televisions, connected home appliances, and smart home solutions, with an ever-growing integration of on-device AI. The show confirmed a powerful underlying trend: AI is no longer confined to servers and data centers — it is now making its way into every home, every socket, and every screen.
Apple and the iPhone 16: AI for the Masses
On September 9, 2024, Apple held its annual keynote — dubbed “Glowtime” — marking the official unveiling of the iPhone 16 lineup. The event was one of the most closely watched moments of the quarter across the entire electronics industry.
The iPhone 16, powered by the new A18 chip, was designed from the ground up with artificial intelligence in mind. Unlike previous generations, the entire lineup — not just the Pro models — supports Apple Intelligence features. The device also introduced a dedicated Camera Control button and a return to a vertical lens arrangement, particularly suited for capturing spatial video. Meanwhile, iOS 18, available from September 16, brought a redesigned Siri with extended conversational capabilities, advanced visual search, and unprecedented interface customization.
On the commercial side, analysts at Counterpoint Research projected Apple’s annual revenue to exceed $400 billion in 2024 — a historic record — driven by both iPhone sales and the rapid growth of the Services segment. In November, Apple also unveiled its MacBook Pro lineup powered by M4, M4 Pro, and M4 Max chips, reinforcing its push into high-performance computing for professionals.
Intel: The End of an Era, the Beginning of a Painful Reinvention
If Nvidia stood as the year’s great winner, Intel represented its dark mirror. The American giant, founded in 1968 and long synonymous with technological might, endured an unprecedented crisis in the second half of 2024.
Back in August 2024, CEO Pat Gelsinger had announced the elimination of approximately 15,000 positions — more than 15% of the global workforce — in response to a $1.6 billion loss posted in the second quarter. These layoffs were to take effect before year’s end. The symbolic blow came in November 2024, when Intel was ejected from the Dow Jones Industrial Average, the index tracking the 30 most influential American companies, replaced by none other than Nvidia. That substitution struck industry watchers as a historic passing of the torch between two eras of chip manufacturing.
The company was struggling to establish itself in the lucrative AI markets, while TSMC and Nvidia captured the lion’s share of the value generated by the shift toward accelerated computing. The causes of Intel’s difficulties are multiple: costly investments in non-strategic segments, a lag in transitioning to advanced process nodes, and an organizational culture widely criticized as overly bureaucratic. The appointment of a new CEO, Lip-Bu Tan, at the end of 2024 signaled a radical reset for the year ahead.
The Great Geopolitical Game: The West Tightens Its Grip on Chinese Chips
One of the most structurally significant developments of the quarter was the tightening of U.S. export controls on AI chips destined for China. While restrictions had already been imposed in 2022 and 2023 on high-performance GPUs — notably Nvidia’s H100 — the Biden administration continued to reinforce this regulatory arsenal, broadening the list of countries subject to prior authorization and strengthening controls over chip manufacturing equipment.
These restrictions sent ripple effects throughout the global value chain. China’s response took the form of a massive investment in legacy semiconductors — production of which surged 40% in 2024 — alongside an acceleration of national research programs targeting advanced process nodes. Beijing also launched “Big Fund III,” the largest semiconductor investment fund in history, endowed with $47.5 billion over fifteen years, aimed at building the industrial expertise needed for long-term self-sufficiency.
This technological standoff illustrates a deeper movement: the gradual fragmentation of global electronics supply chains, with a growing push toward the regionalization of semiconductor production — in the United States under the CHIPS Act, in Europe through the European Chips Act, and in Asia centered around TSMC, Samsung, and the broader Japanese ecosystem.
Samsung Reclaims the Top Spot
In terms of global rankings, Samsung Electronics capitalized on the memory market rebound to reclaim the top position among semiconductor manufacturers from Intel, posting sector revenues of $66.5 billion in 2024. Strong demand for High Bandwidth Memory (HBM) — an essential component for AI accelerators — allowed the Korean giant to cement its status as an indispensable supplier to the generative AI infrastructure.
Conclusion: A Sector at a Crossroads
The final quarter of 2024 was far more than a routine commercial season for the electronics industry. It marks a profound inflection point: artificial intelligence is no longer a promise — it is now the primary architect of demand for components, consumer devices, and services alike. Meanwhile, the balance of power among manufacturers is shifting at accelerating speed, driven by the combined forces of the technology race, geopolitical tensions, and the urgent need to rethink supply chains that have proven dangerously vulnerable.
The months ahead will reveal whether Nvidia can sustain its stratospheric growth, whether Apple can translate embedded AI into a durable commercial advantage, and whether Intel can successfully reinvent itself. One thing is certain: the electronics sector will bear little resemblance in five years to what it was in 2020.
Sources: Gartner, Le Monde Informatique, Hardware & Co, GinjFo, Actutem, Objets Connectés, Iphon.fr, Le Devoir, Octopart, Altium, ChannelNews
