News & Analysis

Weaker demand, inflation anchor global semis market

29th November 2022
Mick Elliott

The Worldwide Semiconductor Market is expected to slow to 4.4 per cent growth in 2022, says WSTS, followed by a decline of 4.1 per cent in 2023.

The slowdown follows strong growth of 26.2 percent in 2021, prompting WSTS to revise its forecast down to a single digit growth for the worldwide semiconductor market in 2022 with a total size of $580 billion.

Rising inflation and end markets seeing weaker demand, especially those exposed to consumer spending were factors behind the downgrade.

While some major categories are still expected to see double-digit year-over-year growth in 2022, led by analogue with 20.8 per cent, sensors with 16.3 per cent, and logic with 14.5 percent growth.

Memory is expected to turn negative in the forecast and decline 12.6 percent year over year.

In 2022, all geographical regions are seen to show double-digit growth except Asia Pacific which is expected to decline 2 per cent.

The Americas region is forecast to show growth of 17 per cent, Europe is tipped to be up12.6 per cent, and Japan is slated for 10 per cent growth.

For 2023, the global semiconductor market is projected to decline by 4.1 percent to US$ 557 billion, driven by a sagging memory segment, which is projected to fall to US $112 billion in 2023, a fall of 17% compared to 2022.

Research company Gartners projects the global semiconductor revenue to decline 3.6% in 2023. In 2022, the market is on pace to grow 4% and total $618 billion.

“The short-term outlook for semiconductor revenue has worsened,” said Richard Gordon, Practice Vice President at Gartner. “Rapid deterioration in the global economy and weakening consumer demand will negatively impact the semiconductor market in 2023.”

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