Global semiconductor sales revenue drop by 8.2% in 2023, but 4th Q jumps by 8.4%

Date: 06/02/2024
Multiple market research bodies reported various figures of drop in semiconductor sales revenue in year 2023, the more accurate and latest figure has come from industry body Semiconductor Industry Association (SIA). SIA reported the global semiconductor industry sales reached a total of $526.8 billion in 2023, a drop of 8.2% compared to previous year 2022, where the total revenue was $574.1 billion. However the drop was more in the first two quarters of 2023. The market started recovering the third quarter of 2023 and performed a lot better in fourth quarter of 2023. Total global semiconductor sales in fourth quarter 2023 reached $146.0 billion up by 11.6% compared to fourth quarter of 2022 and 8.4% higher than the total from third quarter of 2023, as per SIA. The month of December most of the times doesn't see much growth, where as in 2023 global sales for the month of December 2023 were $48.6 billion, an increase of 1.5% compared to November 2023 total.

Here below is further information shared by SIA in its release:

“Global semiconductor sales were sluggish early in 2023 but rebounded strongly during the second half of the year, and double-digit market growth is projected for 2024,” said John Neuffer, SIA president and CEO. “With chips playing a larger and more important role in countless products the world depends on, the long-term outlook for the semiconductor market is extremely strong. Advancing government policies that invest in R&D, strengthen the semiconductor workforce, and reduce barriers to trade will help the industry continue to grow and innovate for many years to come.”

On a regional basis, Europe was the only regional market that experienced annual growth in 2023, with sales there increasing 4.0%. Annual sales into all other regional markets decreased in 2023: Japan (-3.1%), the Americas (-5.2%), Asia-Pacific/All Other (-10.1%), and China (-14.0%). Sales for the month of December 2023 increased compared to November 2023 in China (4.7%), the Americas (1.8%), and Asia Pacific/All Other (0.3%), but decreased in Japan (-2.4%) and Europe (-3.9%).

Several semiconductor product segments stood out in 2023. Sales of logic products totaled $178.5 billion in 2023, making it the largest product category by sales. Memory products were second in terms of sales, totaling $92.3 billion. Microcontroller units (MCUs) grew by 11.4% to a total of $27.9 billion. And sales of automotive Ics grew by 23.7% year-over-year to a record total of $42.2 billion.

Below table provides semiconductor sales data for the month of December 2023:
semiconductor sales 2023

Source: SIA

Below chart depicts worldwide semiconductor revenues from 1996 to 2023.
semiconductor sales 2023