WSTS: 10.3% drop in global semiconductor revenue, SIA report 0.3% up in Mar 23

Date: 07/06/2023
WSTS forecasted global semiconductor market to see a downturn of 10.3 % in 2023 to reach US$515 billion and also estimate a growth of 11.9% in 2024.

Other finding by WSTS:
Although two primary categories, Discrete and Optoelectronics, are predicted to sustain single-digit year-over-year growth in 2023, at 5.6 % and 4.6 % respectively, other categories are anticipated to shift into negative growth. This includes Memory, which is forecasted to decline by approximately 35 % year over year.

For the year 2023, the European and Japanese markets are projected to experience growth, with respective increases of 6.3 and 1.2 %. Conversely, the remaining regions are anticipated to face a downturn, with the Americas expected to decline by 9.1% and the Asia Pacific region by 15.1 %.

Looking ahead to 2024, the global semiconductor market is forecasted to surge by 11.8 %, amounting to US$576 billion. This expansion is anticipated to be primarily driven by the Memory segment, which is projected to recover to US$120 billion in 2024, marking an over 40 % increase compared to the previous year. Nearly all other key categories, including Discrete, Sensors, Analog, Logic, and Micro, are projected to exhibit single-digit growth.

In terms of regional perspectives, all areas are expected to see sustained growth in 2024. Notably, the Americas and Asia Pacific regions are estimated to showcase robust double- digit year-over-year growth.

Below is the latest monthly update from Semiconductor Industry Association (SIA):
SIA announced global semiconductor industry sales were $40.0 billion during the month of April 2023, an increase of 0.3% compared to the March 2023 total of $39.8 billion and 21.6% less than the April 2022 total of $50.9 billion. Monthly sales are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average. Additionally, a newly released WSTS industry forecast projects annual global sales will decrease 10.3% in 2023 and then rebound with growth of 11.9% in 2023. SIA represents 99% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms.

“The global semiconductor market remains in a cyclical downturn, exacerbated by sluggish macroeconomic conditions, but month-to-month sales ticked up for the second consecutive month in April, perhaps foreshadowing a continued rebound in the months ahead,” said John Neuffer, SIA president and CEO. “The latest industry forecast projects a double-digit dip in global chip sales for 2023, followed by a strong rebound in 2024.”

Regionally, month-to-month sales in April increased in China (2.9%) and Japan (0.9%), but decreased in Europe (-0.6%), the Americas (-1.0%), and Asia Pacific/All Other (-1.1%). Year-to-year sales in April were up in Europe (2.3%), but down in Japan (-2.3%), the Americas (-20.5%), Asia Pacific/All Other (-23.9%), and China (-31.4%).

SIA endorsed the WSTS Spring 2023 global semiconductor sales forecast, which projects annual global sales will be $515.1 billion in 2023, down from the 2022 sales total of $574.1 billion. In 2024, global sales are projected to reach $576.0 billion, which would be the industry’s highest-ever total. WSTS tabulates its semi-annual industry forecast by gathering input from an extensive group of global semiconductor companies that provide accurate and timely indicators of semiconductor trends.

SIA forecast

News Source: SIA and WSTS

Author: Srinivasa Reddy N
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