Gartner see weakness in semiconductor market adjusts forecast to 7.4% in 2022

In most of the semiconductor market the chip shortage issue is resolving, the lead time is coming down, the prices are stabilising or falling in some cases, and in some markets such as PC market, the consumption of semiconductors is estimated to decline. Market researcher Gartner has confirmed these trends where it adjusts semiconductor market growth in 2022 to 7.4%, earlier a quarterback it had forecasted13.6% growth in 2022. “Although chip shortages are abating, the global semiconductor market is entering a period of weakness, which will persist through 2023 when semiconductor revenue is projected to decline 2.5%,” said Richard Gordon, Practice VP at Gartner. “We are already seeing weakness in semiconductor end markets, especially those exposed to consumer spending. Rising inflation, taxes and interest rates, together with higher energy and fuel costs, are putting pressure on consumer disposable income. This is affecting spending on electronic products such as PCs and smartphones.” The latest findings and other comments shared by Gartner includes: Overall, 2022 global semiconductor revenue has been reduced from the previous quarter’s forecast by $36.7 billion, to $639.2 billion, as economic conditions are expected to worsen through the year (see Table 1). Memory demand and pricing have softened, especially in consumer-related areas like PCs and smartphones, which will ...